Advanced Micro Devices Drops Samsung, Shifts Chip Orders To Taiwan Semiconductor
Advanced Micro Devices, Inc. (NASDAQ:AMD) has dumped its 4nm process orders with Samsung Electronics Co (OTC:SSNLF), citing low yield rates on its advanced process nodes and the impact of the US tariffs.
The Nvidia Corp (NASDAQ:NVDA) rival chip designer has tapped Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) fab in Arizona, Technode reported on Wednesday, citing Wccftech.
AMD had previously pursued a dual-sourcing strategy and planned broad collaboration with Samsung on 4nm production.
Also Read: Samsung Galaxy Sales Soar But Foundry Segment Lags As Trump Tariffs Loom
President Trump’s tariff policies prompted companies like Nvidia and Apple Inc (NASDAQ:AAPL) to use the Arizona facility for their chips.
In April, Taiwan Semiconductor broke ground on its third semiconductor manufacturing fab in Arizona.
In March, the Taiwanese contract chipmaker announced plans to invest an additional $100 billion in US plants in addition to its $65 billion in planned investments in the country.
The investment followed Trump’s tariff policies and verbal attacks on Taiwan “for stealing” the U.S. semiconductor business.
On Tuesday, Advanced Micro Devices reported quarterly results. First-quarter revenue was $7.44 billion, up 36%, beating analyst estimates of $7.13 billion.
AMD reported first-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 94 cents per share. The company’s gross margin was 54%.
What’s Next: Advanced Micro Devices expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million. Analysts are currently forecasting second-quarter revenue of $7.24 billion.
The firm expects a second-quarter adjusted gross margin of 43%, which includes an approximate $800 million impact in charges related to inventory due to new export controls.
In February, Benchmark analyst Cody Acree highlighted AMD gained market share in AI and server markets, accelerating the MI350 launch to compete with Nvidia’s Blackwell and expanding client CPU momentum.
ASICs only make up about 20% of the total AI silicon opportunity.
Price Actions: Advanced Micro Devices’ stock is up 0.59% at $99.05 at last check Wednesday. TSM is up 0.90%.
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