Google is reportedly in talks with Samsung Electronics to produce next-generation artificial intelligence (AI) chips. This move comes as the world’s largest foundry, Taiwan Semiconductor Manufacturing Company (TSMC), struggles to meet the surging demand for AI semiconductors, prompting a diversification of supply chains.
On Thursday, tech news outlet The Information reported that Google is exploring the possibility of outsourcing some components of its next-generation AI chip, codenamed Icefish, to Samsung Electronics.
According to the report, TSMC would manufacture the core chip, while Samsung would produce separate components that connect memory and chips using a 2-nanometer process.
Icefish is currently in the design phase, with mass production expected to commence as early as 2028.
This potential collaboration emerges amid intense competition for semiconductor production capacity, fueled by the AI boom. TSMC is facing a production crunch as major clients like NVIDIA, AMD, Apple, and Broadcom flood the company with orders.
Google has been developing its own AI chip, the Tensor Processing Unit (TPU), as an alternative to NVIDIA’s Graphics Processing Units (GPUs). The TPU is viewed as a crucial growth driver for Google’s cloud business.
In a bid to expand its AI chip supply chain, Google has recently begun diversifying its production partnerships. The Information also reported on Monday that Google is considering outsourcing the production of over 3 million TPUs, slated for 2028, to Intel Corporation.
Industry analysts suggest that this collaboration could present a significant opportunity for Samsung’s foundry business. Despite losing ground to TSMC in terms of market share, Samsung is actively pursuing AI semiconductor clients by advancing its next-generation 2-nanometer process technology.
The simultaneous participation of Google, Samsung Electronics, and Intel Corporation in building the AI chip supply chain could help mitigate the current production structure dominated by a few key players.
Both Google and Samsung Electronics have refrained from officially commenting on these reports.