TECH

Samsung rides the wave of TSMC
Samsung's chip manufacturing business is experiencing a golden moment. After a first quarter of 2026 with record-breaking operating profits, the South Korean manufacturer is preparing to host even more heavyweights in the technology industry, desperately seeking a viable alternative.
The reason behind this mass migration is simple: TSMC can't keep up. The explosion in demand for artificial intelligence and high-performance chips has completely exhausted the production capacity of the Taiwanese giant, forcing companies to rapidly diversify their supply lines.
To avoid being held hostage by bottlenecks in the supply chain, technology companies like Google and AMD are turning to Samsung. It's the classic case of "not putting all your eggs in one basket," and the South Korean brand is capitalizing on this competitive crisis in an exemplary way.
With TSMC practically at full capacity, the list of clients adopting the "dual-sourcing" strategy (splitting orders between two foundries) continues to grow. AMD, for example, is already in negotiations for Samsung to manufacture its future processors starting in 2028.
If you thought Google would be left out, think again. The search giant is deepening ties for the production of next-generation Axion processors and has already asked Samsung to take over some of the critical Tensor Processing Units (TPUs) intended for heavy artificial intelligence tasks.
As you might expect, this diversification movement isn't limited to the most obvious technologies. Even the automotive industry is preparing for shortages, securing its space on the South Korean brand's assembly lines:
-Tesla: You've already confirmed that your next AI6 chip will be entirely manufactured at Samsung's facilities in Texas.
-BYD: The world's largest electric vehicle manufacturer is in advanced discussions for the production of its autonomous driving chips.
-Groq: The well-known AI startup backed by NVIDIA already uses Samsung's foundry and is expected to maintain the partnership for future versions of its specialized chips.
The chip market is narrowing...Looking coldly at the current market, the reality is that there are only three names capable of manufacturing truly advanced semiconductors: TSMC, Samsung, and Intel. Since Intel's external manufacturing division is still in its infancy, Samsung naturally assumes the status of a major and unique alternative to TSMC's dominance.
It's undeniable that TSMC still holds the crown in producing the world's most advanced chips. However, this chronic inability to meet rampant demand is proving costly in the long run, opening the door for the South Korean company to gain momentum that seemed almost impossible just a short time ago.
It remains to be seen whether Samsung will be able to maintain this breakneck pace and convince these companies to stay on its side, even when the storm passes. For now, it's at least curious to observe how the competitive crisis ended up being the best news the brand's executives could receive this year.
Water and talent shortages...The scarcity of water and skilled labor in Taiwan has left TSMC worried, potentially jeopardizing the production of advanced chips for generative artificial intelligence solutions. The warning was given on Friday (12) by the company's CEO, CC Wei.
The Asian country has experienced several periods of drought in recent years, even imposing consumption controls in 2021, when it faced one of the worst droughts in its history. Therefore, the head of the world's largest chip manufacturer has not yet completely ruled out hiring water trucks to keep its factories running.
Addressing the issue during the inauguration of a science park in Pingtung, the executive said that the President of Taiwan, Lai Ching-te, presented plans to solve the water shortage problem. One of the ideas is to interconnect the island's reservoirs, which have refilled with recent rains.
When the project is completed, water distribution throughout the country will become more efficient, guaranteeing access even during crises, including for industries;
“In that case, in the future I will no longer need to say that land, water or electricity may be lacking,” declared Wei;
He was referring to the historical “five bottlenecks” of the local industry, which are water, energy, land, labor and talent;
The last two themes were also cited by the CEO of TSMC, who stated that he suffers from a lack of specialized professionals to hire.
On this, the Taiwanese president revealed that the government is trying to attract and retain foreign talent, especially for the technology sector. The strategy includes making the work authorization processes in the country less bureaucratic.
Even in the face of these difficulties, the head of the semiconductor manufacturer reiterated that the company will maintain its main research, development and manufacturing centers in the country. It is worth remembering that TSMC invested US$ 165 billion in the construction of a complex in Arizona (United States).
The high water consumption related to AI also generates concern among other technology giants, such as Google. Learn about the plans of the Mountain View company to make the use of water resources more efficient.
mundophone




