Samsung Hits A Huge AI Chip Order With Preferred Networks

As the world dives deeper into products, services and applications powered by artificial intelligence (AI) and generative artificial intelligence (GenAI), AI companies are on the lookout to source the latest technology and most powerful AI chips.

Despite the 2023-end shortfall of AI chips that led to Japanese AI company Preferred Networks designing its own chip, the company has now placed a big purchase order with Samsung Electronics for its advanced semiconductors.

So, what did Samsung Electronics say about its newest order? Let’s explore!
 

What Did Samsung Electronics Announce?

 

• Through a news release published on its website, Samsung Electronics announced that it will provide turnkey semiconductor solutions to Preferred Networks.

• As per the release, this will consist of using its 2-nanometer (nm) foundry process and the advanced 2.5D packaging technology Interposer-Cube S (I-Cube S).

• This packaging technology is a heterogeneous integration package technology that consists of compiling multiple chips in one package to improve inter-connection speed, while reducing the size of the package.

• Furthermore, the use of the silicon interposer (Si-interposer), helps produce an ultra-fine redistribution layer (RDL) that helps stabilize power integrity, ensuring the best possible performance for the chips.

• This will enable Preferred Networks to use Samsung’s leading-edge foundry and advanced packaging products to develop and build powerful AI accelerators, a product that’s in high demand owing to growing capabilities of GenAI and AI applications.

• Samsung has strengthened its overall GAA (Gate-All-Around) technology since beginning mass production of the industry’s first 3nm process node applying GAA transistor architecture.

• This led to an increase in orders for its 2nm process that came with further upgrades and enhanced power efficiencies.

• As per the release, “The cooperation with Preferred Networks marks the first achievement for Japanese companies in the field of large-sized heterogeneous integrated package technologies.”

• The move will help Samsung speed up its plans to further its presence in the leading global advanced packaging market.

• Samsung Electronics did not provide details about the size of the order.

• As per Samsung Electronics, the chips were designed by GAONCHIPS, a specialized system semiconductor development company.

 

What Did Samsung And Preferred Networks Executives Say?

 

• Taejoong Song, Corporate VP and the Head of Foundry Business Development Team at Samsung Electronics, said, “This order is pivotal as it validates Samsung’s 2nm GAA process technology and Advanced Package technology as an ideal solution for next-generation AI accelerators.”

• [Contd.] “We are committed to closely collaborating with our customers ensuring that the high performance and low power characteristics of our products are fully realized.”

• Junichiro Makino, VP and Chief Technology Officer (CTO) of Computing Architecture at Preferred Networks, said, “We are excited to lead in AI accelerator technology with Samsung Electronics’ 2nm GAA process.”

• [Contd.] “This solution will significantly support Preferred Networks’ ongoing efforts to build highly energy-efficient, high-performance computing hardware that meets the ever-growing computing demands from generative AI technologies, especially large language models.”

Recently, we reported on a study that highlighted the importance of drawing revenue from the immense expenditure brought about by AI chips, hardware and infrastructure.

A whopping amount of $600 billion is needed in annual revenue to justify the investments being poured into this emerging technology.

Do you think AI companies will be able to grow their revenue and answer AI’s $600 billion question?

Do you think this order will help Samsung Electronics boost its AI semiconductor market share and challenge current competitors?

Let us know in the comments below!