AMD, Google, Tesla, and Groq turn to Samsung Foundry as TSMC runs out of capacity

TSMC's fully booked production capacity is no longer just an industry talking point, as the ripple effects are becoming increasingly difficult to ignore. According to a report from Nikkei Asia, a growing list of major chip customers, including AMD, Google, Nvidia-backed Groq, Tesla, and BYD, are in discussions with Samsung Foundry about manufacturing future chips as demand continues to outstrip TSMC's available capacity.

AMD is reportedly in talks with Samsung about manufacturing certain future CPUs starting in 2028. Google is discussing two separate Samsung engagements. One covers its next-generation Axion processors expected around 2028, while the other involves components tied to its 10th-generation Tensor Processing Unit, codenamed Icefish, which is being co-developed with MediaTek.

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Meanwhile, Tesla has already confirmed that its next-generation AI6 chip will be produced at Samsung's Texas facility. BYD, the world's largest electric vehicle maker, is also in discussions with Samsung about manufacturing future autonomous driving chips. Groq, which develops language processing units and is backed by NVIDIA, is already producing chips at Samsung and may also use the foundry for its next-generation products.

TSMC still leads on process technology and yields at advanced nodes, and that is unlikely to change soon. But its capacity at the leading edge is locked up with NVIDIA, Apple, AMD, Broadcom, and others, leaving limited room for additional volume. An executive at a Chinese automotive chip company told Nikkei that TSMC prioritizes advanced production because it is more profitable and in short supply, making Samsung's available capacity increasingly attractive even if its yields remain behind.

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For Samsung, this wave of interest could be a big turning point for its foundry business, which has struggled to win over major outside customers despite its ambitions. Intel Foundry is also benefiting from TSMC's capacity crunch, with reports suggesting Apple could use Intel's 18A-P process for future M7 production in 2027, while Google is said to have ordered 3 million TPUs from Intel for 2028.