Samsung Electronics' foundry business division has recently received the second production order for Ampere GPUs from Nvidia. Samsung Electronics won the first order estimated at one trillion won from Nvidia in early 2020 and delivered them in September.

A GPU is a semiconductor that processes image information. Nvidia has decided to produce additional GeForceX 30 GPUs as the product, which combines GPUs and DRAMs, enjoys strong popularity. Although some industry observers predicted that TSMC would win the second order, Nvidia actually chose Samsung Electronics, which has advantages in terms of technological prowess and fast delivery.

Samsung Electronics is producing additional GPUs for Nvidia using an 8-nm line in its plant in Hwaseong, Gyeonggi Province.

Analysts say that Nvidia decided to partner with Samsung Electronics in consideration of its technical skills and short delivery time. Samsung's 8-nm process is not as good as a 7-nm or sub-7-nm process based on EUV lithography. But the process is good enough to produce high-performance semiconductors. Samsung also produces Qualcomm’s mid- to high-end smartphone application processors (APs) using the 8-nm process.

Nvidia took Samsung’s stable delivery schedule into account as well, they say. Currently, both TSMC and Samsung Electronics are behind schedule in meeting orders placed with their EUV processes, but Samsung 8-nm line has some room to accommodate additional orders. This also compelled Nvidia to choose Samsung's 8-nm process.