AMD looks beyond TSMC for chip production

Chip buyers are scrambling because the usual supplier is fully booked. TSMC, the top name in advanced chipmaking, has no free 2nm space until 2028. AMD, which has relied on TSMC for years, now wants options. Talks with Samsung are far along, and the Korean giant’s new 2nm line could soon be stamping out AMD’s next AI chips. Samsung’s 2nm process is still ramping up, so its yields aren’t as high as TSMC’s. Yet the deal with AMD—and earlier wins like Tesla’s AI5 and AI6—could change that. If Samsung proves it can deliver reliable chips at scale, other big buyers might follow. Intel is also pushing to be a second source, pushing its own 14A and 18A-P processes. The message is clear: when one factory is maxed out, everyone looks for a backup.

AMD’s upcoming Venice and Verano chips are the first targets. Venice is a general-purpose Zen 6 part, while Verano is tuned for AI tasks like reasoning and prediction. Samsung’s Pyeongtaek plant is already set up for these orders, giving AMD a faster path to market. The chip shortage isn’t temporary; it’s a long-term squeeze that forces companies to diversify or risk falling behind.

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