Jenith
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Meta had been working on a custom chip with Samsung Electronics' System LSI division, but it appears that this project may have run into some difficulties.
Korean media is reporting that work on the project has been suspended at Meta's request. It's unclear why the company has made that request.
According to the report, Samsung has stopped working on the custom chip project at Meta's request. No details are available about how much the development work had progressed before Meta effectively pulled the plug.
This would have been a very lucrative opportunity for Samsung. Not only would it have generated revenues from chip development but it would have also generate considerable revenues from the production of this chip at its foundry.
Despite claims that Meta has sought a temporary suspension of this project, it's unclear when or if this project will come back on track at all. Meta may have its own reasons but the company isn't saying anything publicly about this, and neither has Samsung.
This appears to be another setback for Samsung as it's already run into a roadblock on another chip project for a different major client. Samsung had been working on an inference neural processing unit for OpenAI. It's believed to have made a lot of progress in the preliminary development stage.
However, work on the project has cooled off due to strategic differences between Samsung and OpenAI. It's certainly not a good look for Samsung to have reports of two major companies rethinking their chip development projects with the Korean giant just a few days apart.
Korean media is reporting that work on the project has been suspended at Meta's request. It's unclear why the company has made that request.
Meta's reasons for a rethink are as yet unclear
According to the report, Samsung has stopped working on the custom chip project at Meta's request. No details are available about how much the development work had progressed before Meta effectively pulled the plug.
This would have been a very lucrative opportunity for Samsung. Not only would it have generated revenues from chip development but it would have also generate considerable revenues from the production of this chip at its foundry.
Despite claims that Meta has sought a temporary suspension of this project, it's unclear when or if this project will come back on track at all. Meta may have its own reasons but the company isn't saying anything publicly about this, and neither has Samsung.
This appears to be another setback for Samsung as it's already run into a roadblock on another chip project for a different major client. Samsung had been working on an inference neural processing unit for OpenAI. It's believed to have made a lot of progress in the preliminary development stage.
However, work on the project has cooled off due to strategic differences between Samsung and OpenAI. It's certainly not a good look for Samsung to have reports of two major companies rethinking their chip development projects with the Korean giant just a few days apart.