Google, AMD, BYD Shift Chip Orders to Samsung Amid TSMC Capacity Constraints

Huo Xing Finance reports, according to Nikkei Asia, due to surging demand for AI infrastructure leading to tight capacity at TSMC’s advanced chip production lines, companies such as BYD, Google, AMD, and Tesla are increasingly turning to Samsung Electronics for chip foundry services. Sources reveal that BYD is negotiating with Samsung to produce next-generation autonomous driving chips; Google is exploring Samsung’s potential to manufacture its next-generation Axion processor and certain TPU chips, expected to launch in 2028; AMD is also in talks for Samsung to produce a portion of its future CPUs starting in 2028. Additionally, Tesla’s upcoming AI6 chip will be manufactured at Samsung’s facility in Texas. Industry insiders note that although Samsung still lags behind TSMC in chip yield rates, its greater available capacity makes it an increasingly attractive option. Meanwhile, constrained TSMC capacity and geopolitical factors are driving more Chinese and U.S. companies to adopt a diversified supply chain strategy by spreading orders across multiple foundries.