AMD CEO Lisa Su confirmed plans to discuss a broader partnership with Samsung executives. The company currently views Samsung and SK Hynix as critical strategic partners, particularly for the supply of DDR5 and HBM memory required for its AI and data center operations. AMD emphasizes the necessity of long-term supply chain planning, looking ahead three to five years.
The two companies previously signed a non-binding memorandum of understanding in March, which covers four areas and remains effective for three years. Samsung has already secured a role as a primary supplier of HBM4 memory for the upcoming AMD Instinct MI400-series accelerators. AMD has also begun shipping its new Instinct MI455 accelerators, which feature 432GB of HBM4 memory, alongside rack-scale Helios AI systems.
While Samsung aims to expand this relationship into foundry orders for logic chips, AMD remains cautious. The company currently utilizes Samsung Foundry and UMC primarily for programmable logic devices. AMD noted in its annual report that shifting production to new manufacturers carries risks, including potential product delays, lower manufacturing yields, or reduced performance of its hardware.
The ongoing negotiations highlight the strategic leverage Samsung holds due to its role in the HBM supply chain. AMD must balance its urgent need for high-bandwidth memory to support its AI accelerator business against the technical and operational risks associated with migrating advanced chip production to a new contract manufacturer.
