Samsung Electronics announced plans on Thursday to acquire 50,000 graphics processing units (GPUs) from Nvidia to develop a facility aimed at automating its semiconductor manufacturing processes. The South Korean technology company stated the GPUs will be used in a new center it has termed an “AI Megafactory.”
The facility will focus on improving chip production for applications including mobile devices and robotics, Samsung officials said. While the company confirmed the plan, it did not provide a timeline for the facility’s construction or when the GPUs would be deployed. In addition to manufacturing, Samsung said it will utilize the Nvidia chips to operate its proprietary artificial intelligence models for its consumer devices.
The collaboration extends to technical integration between the two companies. Nvidia representatives stated on Thursday that they will work with Samsung to adapt the Korean firm’s chipmaking lithography platform for use with Nvidia’s GPUs. According to the representatives, this integration is projected to yield a 20-fold performance improvement for Samsung’s manufacturing systems. Samsung will also implement Nvidia’s simulation software, Omniverse, as part of the initiative.
Samsung is also a key supplier for Nvidia, producing high-bandwidth memory (HBM) that is used in conjunction with Nvidia’s AI chips. As part of their expanded partnership, Samsung said it will work with Nvidia to optimize its fourth-generation HBM for AI-specific uses.
The announcement followed a series of events involving Nvidia’s leadership. On Tuesday in Washington, D.C., Nvidia CEO Jensen Huang spoke at the company’s GTC conference, where he discussed collaborations with other technology and pharmaceutical companies. Following the conference, Huang was seen meeting with Samsung Chairman Lee Jae-yong in South Korea, according to reports from local media outlets.
In a call with reporters on Wednesday, Raymond Teh, Nvidia’s senior vice president of Asia-Pacific, commented on the company’s regional activities. “We’re working closely with the Korean government to support its ambitious leadership plans in AI,” Teh said. He also noted that other South Korean companies, including SK Group and Hyundai, are deploying large numbers of Nvidia GPUs.
