Samsung reaches for AMD: 2 nm chips for EPYC Venice could put TSMC under serious pressure for the first time

While Taiwanese foundry giant TSMC has traditionally been considered the undisputed top dog in the high-end semiconductor market, the balance of power in chip manufacturing is slowly beginning to shift. The latest report from Sedaily suggests that Samsung Foundry is in advanced talks with AMD to manufacture next-generation 2nm processors, apparently specifically the EPYC Venice server CPUs. This would not only give Samsung a prestigious project, but would also finally establish it as a serious alternative to TSMC.

Second attempt with a new claim

Samsung has tried several times in the past to position itself as a foundry service provider for high-end customers. However, its market share remained meagre, with Apple, AMD, Nvidia and most recently Tesla always turning to TSMC. The main reasons: Shortcomings in process maturity, yield problems and a lack of confidence in the scalability of production lines. However, a turnaround seems possible in 2025. After Samsung recently secured orders from Apple (presumably for cheaper chips) and Tesla (presumably FSD hardware), AMD also appears to be ready to talk again. According to Sedaily, the decision on a collaboration is to be made by January 2026, depending on whether Samsung’s SF2 process (Samsung Foundry 2 nm) meets AMD’s performance and efficiency requirements. The 2nm class is a critical milestone: the new EPYC Venice chips are AMD’s first major CPU design based entirely on 2nm and were originally intended to be manufactured entirely at TSMC. However, TSMC’s capacity is limited, especially in the N2 node, and AMD needs to secure its own product plans.

Dual sourcing becomes a survival strategy

In view of the AI boom and a galloping demand for HPC and data center chips, TSMC is increasingly reaching its capacity limits. For AMD, but also for Qualcomm, Nvidia and others, it is becoming clear that they can no longer rely on one manufacturer alone. Dual sourcing is not only economically sensible, but also strategically necessary. This is precisely where a window of opportunity opens up for Samsung that has been closed for years. If the prototypes that Samsung will soon deliver according to insiders meet the quality requirements, this would be an enormous gain in prestige for the Korean manufacturer – and a real low blow for TSMC. Not only because it would lose a long-standing customer, but also because its monopoly on cutting-edge logic processes would be realistically called into question for the first time.

No Ryzen yet, but a start

Although there is speculation that future Ryzen CPUs (codenamed Olympic Ridge) could also migrate to Samsung nodes, these are not on the timetable until 2026. Discussions are currently clearly focused on the Venice project – a product line that is particularly important for AMD strategically, as it is not only used in the data center segment, but is also becoming increasingly relevant in the context of AI acceleration. The move would also be notable geopolitically; while the US strategically relies on TSMC as an ally, such a deal would significantly strengthen South Korea’s weight in the global chip market, with unclear consequences for trade relations, supply chains and industry promotion.

And what about Intel Foundry?

That leaves the third player in the group: Intel Foundry Services (IFS). Although the 18A and 14A nodes are being ambitiously launched there, analysts remain skeptical. The majority of customers are likely to wait and see how Intel’s own chips perform on these nodes before signing production contracts. Intel is still lagging far behind in terms of confidence, partly because it is standing in its own way as a competitor in almost all market segments.

Conclusion

If Samsung lands this deal, it will not be a small stage victory, but a potential game changer. The loss of a pure contract manufacturer like GlobalFoundries had once tied AMD strongly to TSMC, but now a new chapter is opening up. If Samsung really does bring itself up to par technologically, the previously deadlocked foundry market could finally see some competition. For AMD, this would not only be a tactical advantage, but a strategic liberation.

Source: Sedaily