Samsung Electronics is making waves in the tech industry with a strategic decision to invest in Graphics Processing Units (GPUs). This significant move, recently approved by the company’s management committee, marks a shift from their usual focus on memory and foundry services.

A Departure from the Norm

The details of the investment remain undisclosed, but industry experts are buzzing with speculation. This is the first public mention of a GPU investment decision since 2012, according to Samsung’s corporate governance report. The committee behind the decision includes high-ranking officials like the head of the mobile division and presidents of memory business sectors.

Two Possible Paths Forward

There are two main interpretations of Samsung’s move. Some believe Samsung is aiming to become a major player in the GPU market, particularly for AI applications.

• Targeting the AI Market: GPUs are crucial for processing the massive datasets used in artificial intelligence, and Samsung already manufactures high-bandwidth memory (HBM) used in such products. Additionally, their collaboration with AMD on smartphone application processors with GPUs suggests a potential focus on mobile technology.

However, another theory suggests Samsung might be using GPUs for internal purposes.

• Supercharging Internal Innovation: Samsung has openly discussed using AI-powered digital twins to fully automate their factories by 2030, and GPUs are essential for such endeavours. Their newly built Hwaseong High-Performance Computing Center is further evidence of this strategy. The centre houses powerful servers designed for complex AI computations needed in advanced semiconductor design.

The Future of AI at Samsung

Regardless of the specific goals, Samsung’s investment in GPUs signifies a growing emphasis on AI within the company. This strategic move positions them to be a major force in the future of AI-powered technologies.

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Source: Business Korea