Samsung Electronics Co., world’s largest memory chipmaker, has landed another milestone foundry order to produce next-generation graphics processing units (GPUs) for Nvidia Corp., the second high-profile customer after IBM.

Nvidia on Tuesday (local time) unveiled its next-generation GeForce RTX 30 Series GPUs and said production of the new graphics cards will be through Samsung Electronics’ 8-nano foundry.

Samsung Electronics shares were mostly flat, closing Wednesday 0.37 percent higher at 54,400 won.

Nvidia had produced previous generation model GeForce RTX 20 Series through pure-play top foundry Taiwan Semiconductor Manufacturing Company on its 12-nano fabrication process. It chose Samsung Electronics’ 8-nano process for the next-generation model GeForce RTX 30 to double GPU performance.

Samsung Electronics and Nvidia would up performance by 10 percent compared to other products produced at Samsung Electronics’ 8-nano fab. The new graphics card supports 8K video depending on the model. Nvidia grabbed audience attention by presenting 8K performance using LG Electronics’ LG Signature OLED 8K TV.

The feat aids Samsung Electronics’ chase after TSMC that commands more than half of orders from fabless chipmakers. The Korean chip giant won the order to produce IBM’s next-generation server-use computer processing unit POWER10, the first commercialized processor built using 7-nano process technology. The processor is produced at Samsung Electronics’ extreme ultraviolet (EUV) 7-nano production line.

Samsung Electronics is unrivalled in pushing the limits of nano technology. It released 7-nano products applying EUV for the first time in the industry in April last year. In the second quarter this year, the company launched operations of 5-nano processing and is engaged in technology development of second generation 5-nano process and of 4-nano process that significantly improve performance and efficiency.

According to TrendForce, a leading market intelligence provider, Samsung Electronics is projected to account 17.4 percent of global foundry market in the July-September period, behind TSMC’s 53.9 percent.

By Chun Gyung-woon and Lee Eun-joo

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