Advanced Micro Devices, Inc (NASDAQ:AMD) will likely expand its partnership with Samsung Electronics Co (OTC:SSNLF) to develop 3-nanometer chip processing technology.

The two companies have a long history of collaboration on graphics processing units (GPUs) for smartphones and high-bandwidth memory (HBM) chips, which are crucial for artificial intelligence devices.

Analysts believe that this collaboration on 3nm node technology will help Samsung narrow its market share gap with Taiwan Semiconductor Manufacturing Co (NYSE:TSM), the Korea Economic Daily reports.

At the imec ITF World 2024 conference in Belgium, AMD CEO Lisa Su announced plans to mass-produce next-generation chips using 3nm Gate-All-Around (GAA) technology.

Samsung is currently the only chipmaker to commercialize GAA-based 3nm chip processing technology.

Su’s comments have been interpreted as formalizing AMD’s 3nm foundry collaboration with Samsung, especially as TSMC’s 3nm technology is fully booked for clients like Apple Inc (NASDAQ:AAPL) and Qualcomm Inc (NASDAQ:QCOM).

The expanded partnership between AMD and Samsung includes a multi-year agreement to integrate AMD’s Radeon graphics functions into Samsung’s Exynos application processors and provide HBM chips and turnkey packaging services.

AMD just claimed to account for 33% of the server CPU market. Meanwhile, it braces itself to showcase the “Turin” processors and a GPU roadmap following the MI300 product line.

AMD stock gained 37% in the last 12 months. Investors can gain exposure to the stock via Invesco AI And Next Gen Software ETF (NYSE:IGPT) and iShares Semiconductor ETF (NASDAQ:SOXX).

Price Actions: AMD shares traded lower by 1.24% at $169.49 premarket at the last check on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy of AMD.

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This article AMD Expands Partnership with Samsung, New 3nm Chips to Boost Market Share originally appeared on Benzinga.com

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