Samsung’s 2-nanometer process orders surge, straining manpower; Google’s TPU I/O chip backend design plans to outsource

BlockBeats message, on July 16, Samsung Electronics is considering outsourcing the I/O chip backend design work for Google’s 10th-gen TPU (code name Icefish). This Google TPU, based on a 2-nanometer process, consists of a Compute processor and an I/O chip— the former is expected to be manufactured by TSMC using a 1.4-nanometer process, while the latter will be produced by Samsung using a 2-nanometer process and is responsible for data transfer between the Compute processor and HBM. Google is jointly designing the chip with MediaTek, with mass production targeted as early as 2028. However, Samsung’s recent 2-nanometer orders have surged rapidly— besides Google and Tesla, it has also secured customers including Anthropic and DeepX— leaving internal available manpower stretched thin. Previously, the backend design for Tesla’s 2-nanometer autonomous driving chip was still completed using Samsung’s own staff.

Potential outsourcing partners currently mentioned include ADTechnology, Gaonchips, and Alphachips. The first two have each already devoted large-scale projects— ADTechnology is focusing on the 2-nanometer CPU project ADP620, targeting annual revenue to exceed one trillion won between 2028 and 2029; Gaonchips is preparing to take part in Korea’s K-On-Device AI project worth about 8000 billion won, working with companies such as Hyundai Motor to develop 5-nanometer ADAS chips. Since backend design essentially involves lower-value service contracts (typically at the hundreds of billions of won level), far less than end-to-end ASIC projects from design to tape-out (which can reach several trillion to ten trillion won), the two companies are not enthusiastic and only tend to take on limited work to build performance for advanced process projects. Alphachips, meanwhile, views the Google TPU project as a growth driver, so its willingness to participate is stronger. Industry insiders note that orders in the 2-nanometer market that TSMC cannot absorb due to capacity bottlenecks are spilling over to Samsung, and this is also a deeper reason for Samsung’s manpower shortage.