Meta Platforms NASDAQ:META is reportedly exploring a major AI chip partnership with Samsung Electronics (SSNLF), as the Facebook parent pushes deeper into in-house semiconductor development. According to South Korean financial publication Sedaily, Meta is in talks with Samsung's foundry business to design and produce next-generation MTIA AI chips, with the potential order valued at more than 10 trillion won, or about $6.5 billion. The chips are expected to use Samsung's 2nm process, which could mark a shift from TSMC NYSE:TSM, the manufacturer behind Meta's first- and second-generation internal AI accelerators.
The discussions come as Meta accelerates its AI infrastructure buildout and targets 5GW of data center capacity by 2030. Sedaily reported that Meta is running a rapid chip development cycle, with plans to launch third- and fifth-generation chips next year and release next-generation AI chips every six months. The report also said Meta is working with Samsung's System LSI division on chip development, suggesting the potential partnership could stretch beyond manufacturing into broader design collaboration.
For Samsung, the reported Meta talks could strengthen its position in the AI semiconductor market at a time when custom AI chip demand is rising. Industry estimates suggest Samsung's foundry order backlog could approach 50 trillion won over the medium to long term, while Sedaily reported that customers including Tesla NASDAQ:TSLA, Meta, and potentially Anthropic could help Samsung Foundry reach profitability as early as Q4. Anthropic is also said to be considering Samsung's 2nm process for ASIC chips, as AI companies possibly look for alternatives to external processors such as NVIDIA GPUs and Google TPUs.