Samsung's foundry is booming as TSMC struggles with demand – bags Nvidia, Tesla, and Qualcomm as new clients

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The big picture: Samsung and TSMC are two of the largest chip manufacturers in the world, together accounting for more than 80% of the global market. While TSMC is the undisputed leader in advanced nodes with more than 70% market share, Samsung's foundry business has recently received a boost.

According to a report from Nikkei Asia, Samsung Foundry has either received orders from or is in negotiations with Google, Nvidia, Tesla, AMD, and BYD to manufacture advanced semiconductor chips based on sub-5nm nodes. Some of these companies previously worked exclusively with TSMC but are now engaging with Samsung to hedge their bets amid growing global uncertainty.

Google, which is reportedly designing its Tensor Processing Units for AI workloads in collaboration with MediaTek, is considering awarding Samsung a contract to manufacture a key part of these chips. The search giant is also said to be in talks with the South Korean company to produce its next-generation Axion AI accelerators.