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Samsung decided to invest in GPUs for the sake of AI

Samsung has decided to invest globally in graphics processing units (GPUs). The move was approved at a management committee meeting within the board of directors and was significant because it differed from traditional discussion topics, such as memory semiconductors and contract chip manufacturing services, which typically dominate the agenda.

According to Business Korea, the committee, which includes senior executives including Han Jong-hee, head of the Device eXperience (DX) division, as well as the presidents of the Mobile Experience (MX) departments, ratified the “GPU Investment Proposal” " This was the committee's third meeting this year and the first decision on GPU investment since the issue was publicly mentioned in 2012. This has sparked speculation that Samsung is looking to strengthen its position in the graphics processing unit (GPU) business.

GPUs, widely used in artificial intelligence computing, are a key element of high-performance memory (HBM) produced by companies such as Samsung and SK hynix. Samsung's System LSI division is also collaborating with AMD to develop smartphone GPUs, opening the door for a contract semiconductor division in that area.

Some analysts believe the investment reflects Samsung's strategy of using GPUs to improve its own semiconductor manufacturing processes rather than building and releasing its own GPUs. At the same time, Samsung plans to continue collaborating with Nvidia to create artificial intelligence-based “digital twins” for automated semiconductor factories by 2030. By the way, these plans were mentioned at the GTC 2024 conference in March of this year.

In addition, Samsung has completed construction of a High Performance Computing Center in the South Korean city of Hwaseong. Construction began in November 2021 and was completed this April. The center is equipped with the powerful servers and networking equipment needed for semiconductor design, further hinting at the growing importance of artificial intelligence in the company's strategy and signaling its commitment to strengthening its position in this area and generally remaining at the forefront of the semiconductor industry.

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