Samsung said its contract manufacturing business will offer a one-stop shop for AI chips by integrating its memory chip, foundry and chip packaging services in a bid to become market leader in AI chip delivery. 

The chip manufacturer claimed it can create AI chips up to 20% faster by having clients working with a single channel of communication for all of the manufacturing teams at once.

South Korea-based Samsung’s plan to integrate its chip supply chain anticipates growth in demand for AI chips and the need for all chip parts to be closely unified to train large swathes of data. 

“We are truly living in the age of AI – the emergence of GenAI is completely changing the technology landscape,” said Siyoung Choi, president and general manager of Samsung’s foundry business.

Choi said Samsung expects AI chips to boost the revenue of the global chip industry to $778bn by 2028.

Samsung goes head-to-head with TSMC

Although Samsung is the world’s leading memory chip maker, it is still trailing behind Taiwan Semiconductor Manufacturing Co (TSMC) in the foundry market, where companies make the majority of chips for companies that design but do not manufacture, such as NVIDIA

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TSMC’s share of the foundry market grew to 61.7% from 61.2% in the first quarter of 2024, while Samsung fell to 11% from 11.3% in the same period. 

The South Korean chip maker has lost ground in other areas of the chip-making market compared to its competitors.

On Thursday (13 June), Samsung said its chairman Jay Y. Lee met with the heads of Meta, Qualcomm and Amazon to discuss cooperation in chips, AI and cloud services.

The meetings highlight another push from the chip company to get ahead in the AI boom. 

Lee met with Qualcomm CEO Cristiano Amon and Amazon CEO Andy Jassy to discuss semiconductor cooperation, including memory chips for Amazon’s cloud services and data centres, Samsung said in a statement.

The Samsung boss also met with Meta CEO Mark Zuckerberg to discuss AI and virtual reality, Samsung said.

Meetings with the three US tech giants will be discussed in a company-wide strategic meeting around the end of June, the company added.

GlobalData forecasts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual rate of 35% between 2022 and 2030.

In the GenAI space, revenues are expected to grow from $1.8bn in 2022, to $33bn in 2027, a CAGR of 80%. GenAI is expected to impact every industry and become a catalyst for broader AI capabilities such as machine learning and computer vision.

The research and analysis company predicted that 2024 will see the number of live AI implementations grow exponentially in the corporate space, particularly in the fields of customer experience and marketing.