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Samsung managed to conclude a new contract with NVIDIA for the production of graphics processors
Recently, only the lazy is not talking about NVIDIA having problems with the release of 8nm graphics chips of the Ampere family, but South Korean media reported this week that Samsung Electronics was able to conclude a second contract for the production of these NVIDIA products. The previous agreement was concluded in September of the outgoing year.
Image source: Samsung Electronics
The South Korean edition of The Korea Economic Daily announced the conclusion of a new contract between Samsung and NVIDIA this week. The terms of the deal are not specified, but the description mentions the production of 8nm graphics processors for gaming purposes, and the contract amount is estimated at tens, if not hundreds of millions of US dollars. Considering that prior rumors attributed to NVIDIA intent to switch to TSMC services for the production of gaming GPUs, the news from South Korea has a positive impact on the reputation of Samsung Electronics. Against this background, TSMC shares even fell slightly in price, by 0.3%.
Samsung to launch NVIDIA GPUs at Hwaseong facility. Perhaps, the new contract provides for increased production volumes, and with its help NVIDIA will try to overcome the shortage of video cards of the GeForce RTX 30 family. Moreover, the mobile Ampere family is on the way, and additional power would be required in any case.
According to TrendForce estimates, this year Samsung’s contract business allowed the company to increase revenue by 17.9% to $ 14.05 billion. In addition to NVIDIA and Qualcomm, Samsung’s clients in this area are Google, IBM, Cisco and Baidu. Korean contractor also manufactures mobile chips for Qualcomm using 8nm technology. Samsung now has seven third-party production lines located in South Korea and the United States. The company’s share in the global market for related services reaches 16.4%.