Meta Switching To Samsung Foundry For AI Chips, Leaving TSMC Due To Volatility

Meta's CEO Mark Zuckerberg has reportedly decided to switch parties, now eying for Samsung Foundry as its primary AI chipmaker as it sees "uncertainty and volatility" at TSMC.

Meta Makes a Bold Move By Switching To The Korean Giant's, Samsung, Camp For Its Custom AI Semiconductors, Ditching TSMC Behind

Meta has recently been stepping up AI developments, aiming to create a custom chip to fuel their computing needs. The firm has been a massive customer of NVIDIA's H100s, acquiring more than 350,000 units this year. However, with the rapidly evolving AI landscape, Meta has decided to take AI computing into its own hands, heading out to South Korea to secure Samsung Foundry as the next significant partner for the firm's ambition.

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Based on a report by the KoreaTimes, Mark Zuckerberg reportedly held a meeting with South Korea's President Yoon Suk Yeol to discuss Meta's extended cooperation with Samsung Foundry in the domain of AI. Moreover, Zuckerberg categorized Samsung Foundry as the "world's largest chip maker," claiming that Samsung will play a key role in Meta's future in the sector. Meta's decision to switch towards a new foundry partner is indeed a success for the Korean giant because they have recently been very active in the markets regarding acquiring new clients, and gaining their trust.

Apart from announcing a collaboration with Samsung Foundry, Meta's CEO did throw some shades on the Taiwan giant TSMC, claiming that the firm's reliance on Taiwan is "volatile" and isn't sustainable in the long run. Meta certainly feels "threatened" by the geopolitical conditions in the region, which is why switching towards Samsung Foundry does seem like the right choice to do so, however, this does raise questions for TSMC regarding their future amid the hostilities between US and China.

Meta has been preparing to release its very own AI chips soon, with the Meta Training and