AMD CEO says it continues exploring foundry partnership with Samsung Electronics

• AMD is working with customers to 'optimize their memory footprint' in response to tight memory chip supply, with Su urging suppliers to 'build faster, as fast as possible'
• Su emphasized AMD's reliance on Korean suppliers, calling Samsung and SK Hynix 'key for us to accomplish our broad ambition in data centres' amid very strong data center demand
• The partnership discussions follow a March MoU between AMD and Samsung covering memory chip supplies for AI infrastructure and exploring foundry services for next-generation AMD products

Summary: AMD Explores Foundry Partnership with Samsung Amid Memory Chip Constraints

Key Developments:

AMD CEO Lisa Su confirmed on Wednesday that the U.S. chipmaker continues exploring partnership opportunities with Samsung Electronics in memory and foundry businesses. During a Seoul visit on October 7, Su met with executives from SK Hynix and Samsung to discuss supply chain collaboration.

Memory Supply Challenges:

Responding to tight memory chip supply conditions, AMD is working with customers to optimize their memory usage to maximize computing capacity. Su urged memory suppliers to "build faster, as fast as possible," emphasizing the critical role of Korean manufacturers in AMD's operations.

Strategic Importance:

Su highlighted AMD's reliance on the Korean supply chain, stating that Samsung and SK Hynix are "key for us to accomplish our broad ambition in data centres." The CEO reported strong demand signals across AMD's product portfolio, with overall data center demand remaining robust.

Partnership Background:

In March, AMD and Samsung signed a memorandum of understanding to expand their strategic partnership on memory chip supplies for artificial intelligence infrastructure. The agreement also included discussions about a potential foundry partnership, where Samsung would provide contract chip manufacturing services for next-generation AMD products.

Market Implications:

The continued exploration of foundry partnerships signals AMD's commitment to diversifying its manufacturing capabilities beyond current suppliers. The emphasis on data center demand and AI infrastructure indicates sustained growth opportunities in these high-margin segments. The tight memory supply situation underscores ongoing semiconductor supply chain challenges that could impact production capacity and product availability across the industry.