Is AMD Losing Samsung? Tech Behemoth Considers Independent GPU Development

Samsung Electronics Co Ltd SSNLF is reportedly on the brink of a significant shift in its approach to smartphone GPU technology. 

The tech giant, renowned for its innovative and competitive edge in the global market, is rumored to be considering the development of its own custom GPU, potentially marking the end of its partnership with Advanced Micro Devices, Inc AMD.

Also Read: AMD's AI and Data Center Prospects Eyeing Market Share Growth, Analysts Say

The speculation stems from the anticipated launch of the Exynos 2400, which might be the last Samsung SoC featuring an AMD GPU. 

This development is fueled by the alleged underperformance of the Xclipse 920, pushing Samsung to explore bespoke solutions to enhance the efficiency and performance of its devices, Wccftech reports.

Samsung's rumored 'Dream Chip,' the Exynos 2500, will likely bolster Samsung's standing in the fiercely competitive smartphone industry. The potential move towards an in-house GPU is a strategic pivot to achieve technological independence by 2025.

Samsung is eyeing a broader application landscape, including the automotive and AI sectors. 

The company believes an in-house solution is pivotal to escalating its competitive stance in these dynamic markets.

Despite its superior ray tracing performance, the Xclipse 920 GPU, part of the Exynos 2200, has been criticized for lagging in pure rasterization. 

The upcoming Exynos 2400, equipped with the Xclipse 940, is expected to feature improved specifications, but skepticism remains regarding its ability to outperform competitors.

Historically, Samsung's venture into custom CPU designs, exemplified by the Mongoose CPU, did not yield the desired outcomes regarding performance and efficiency, forcing it to depend on Arm Holdings Plc's ARM designs. 

Recently, Canadian AI chip startup Tenstorrent collaborated with Samsung's contract chip manufacturing division to produce a new artificial intelligence chip.

Price Action: AMD shares closed higher by 3.99% at $104.07 on Wednesday.