Samsung is in talks to manufacture a key component of Google's next-generation AI chip, potentially breaking TSMC's near-monopoly on advanced chip production as demand outpaces capacity.

What happened: Samsung Electronics is reportedly negotiating to produce the memory input-output die for Google's Icefish chip, a 10th-generation tensor processing unit, using its 2-nanometer process. TSMC would separately manufacture the computing engine on its 1.4nm technology. Mass production could begin as early as 2028, though the project remains in the design stage.

Why it matters: TSMC's most advanced production lines are fully booked, and the company's CEO stated that chip supply will not keep pace with AI demand for years. By engaging Samsung—the world's largest memory chipmaker—Google is diversifying its supply chain at a moment when capacity constraints threaten to limit AI infrastructure expansion. Samsung's foundry business, which has struggled since 2017, is expected to return to profit as early as the third quarter, helped by better 2-nanometer yields and rising orders.

What to watch: Samsung already won a 22.8 trillion won ($15 billion（約2.4兆円）) long-term contract from Tesla for next-generation AI chips, due to enter mass production at its Taylor, Texas fab in the second half of this year. The Icefish project would represent another major validation of Samsung's foundry capabilities and a potential shift in the competitive landscape—TSMC's share of the global pure foundry market rose to 73 percent in the first quarter, while Samsung's remained at about 7 percent.