AMD reportedly seeks Samsung to manufacture its chips, while TSMC’s capacity crunch exposes challenges in supply-chain diversification

The AI boom triggers an explosive surge in chip demand; multiple major clients have booked TSMC’s advanced-process capacity through 2028, forcing tech giants like Apple and AMD to diversify their supply sources, making Samsung Electronics’ contract manufacturing unit the biggest beneficiary.

AI wave sparks a chip shortage; TSMC alone can’t keep up

The rapid expansion of AI demand is reshaping the global semiconductor supply-chain structure. As AI evolves from Q&A chatbots into “agentic AI” capable of autonomously executing tasks, demand for GPUs and CPUs is skyrocketing at the same time—and the final pressure from this demand wave is almost entirely shouldered by TSMC alone.

Tech giants such as NVIDIA, Apple, and Tesla are rushing to lock in TSMC’s advanced-node capacity of 2-nanometer and below, according to South Korean media outlet Edaily. The relevant capacity has already been reserved beyond 2028. While TSMC is the world’s most technologically advanced wafer foundry, it still cannot meet all customers’ urgent needs simultaneously.

Is AMD turning to Samsung? TSMC capacity constraints are the main reason

Industry sources indicate AMD is currently in substantive talks with Samsung Electronics’ foundry division regarding 2-nanometer chip orders. In March this year, after AMD CEO Su Zifeng visited Korea and toured Samsung’s Pyeongtaek plant, both sides discussed accelerating progress, and results are expected soon.

As a major player in the CPU market today, AMD has benefited from agentic AI driving up CPU demand. Its 2026 first-quarter earnings report showed revenue of $10.3 billion, up 38% year over year. However, AMD’s CPU production is highly dependent on TSMC. Given the reality of TSMC being overwhelmed with orders, contact between AMD and Samsung is believed to be driven by a supply-chain diversification strategy rather than Samsung’s process technology having already surpassed TSMC.

Given that Samsung’s foundry is still continuing to improve yields for 2-nanometer process technology, if AMD’s orders materialize, it would be an important endorsement of Samsung’s technological progress.

(“TSMC rushing to 1-nanometer” versus Samsung “consolidating 2-nanometer”; the two foundry leaders diverge)

Apple knocks on Intel and Samsung doors—seeking redundancy, not a plant swap

AMD is not the only big customer being kept out by TSMC’s capacity bottleneck. Last week, Apple also disclosed that it is holding early discussions with Intel and Samsung about foundry services—exploring ways to build backup chip supply sources outside TSMC. Apple has already dispatched senior executives to visit Samsung’s advanced chip fabs in Texas in person. The reason is a double squeeze caused by both AI data center expansions and Mac sales exceeding expectations, leading to tight supply.

Apple CEO Tim Cook also admitted during the earnings call that chip shortages for iPhone and Mac are compressing the company’s growth room.

However, this does not mean Apple plans to switch foundries. Industry consensus is that in the short term, Intel and Samsung cannot provide the same level of yields and production scale as TSMC. With deep technological accumulation and a partnership spanning more than a decade, TSMC still remains Apple’s core supplier that is difficult to replace in the near term.

(Apple seeking Intel and Samsung foundry chips; TSMC’s near-monopoly position faces challenges)

Will Samsung firmly sit as the “second-tier foundry”? Geopolitics may accelerate reshuffling

Amid this wave of supply-chain reorganization, Samsung’s contract manufacturing unit is the most direct beneficiary. In addition to reports of talks with Apple and AMD, Samsung’s foundry business officially confirmed it has secured orders for Tesla’s next-generation AI chip “AI6,” and will also take on production of “AI5.” Production of 2-nanometer and below advanced chips at Samsung’s Taylor plant in Texas in the U.S. is expected to begin next year, laying the groundwork for the foundry unit to return to profitability.

It’s worth noting that the driving force behind this shift is not only capacity, but also geopolitics. Apple CEO Tim Cook warned as early as 2022 that concentrating 60% of production capacity in a single region may not be a wise strategic setup, and cross-strait Taiwan-related risks have also been listed as longer-term issues that must be addressed.

Against this backdrop, the motivation for tech giants to diversify supply chains has expanded from pure capacity considerations to the national security level. Although TSMC is still the global foundry king, as Intel and Samsung gradually move into major customers’ order roadmaps, its long-term bargaining advantage and share of orders may face dilution.

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