Samsung to Manufacture IBM Power11 Chips
According to Korean media reports, Samsung Electronics has signed a contract with IBM to manufacture its next-generation Power11 server processors. Under the agreement, Samsung will leverage its enhanced 7nm 7LPP process, aiming to boost chip performance and yield to meet IBM's requirements. The collaboration is seen as a significant step in Samsung's strategy to diversify its client base.
Samsung's 7LPP process is notable for its use of extreme ultraviolet (EUV) lithography, enabling more precise and finer circuit patterns. Compared with previous-generation processes, 7LPP offers a 23% performance improvement and 45% lower power consumption, delivering significantly enhanced energy efficiency.
To further optimize the Power11 processor, Samsung and IBM will integrate 2.5D ISC packaging technology. Widely used in high-end semiconductors, this advanced packaging method allows multiple smaller chips to be closely combined in a single package, dramatically increasing data transfer speeds and maximizing overall chip performance.
Currently, IBM ranks among the top five companies in the data center CPU market. While its revenue is smaller than Intel, AMD, and NVIDIA, IBM has a strong foothold in enterprise, financial, and high-performance computing (HPC) markets. The Power11 processor, officially launched in July, is described by IBM as the most resilient server chip in the history of its Power platform, offering 99.9999% uptime, system maintenance without shutdown, and exceptional energy efficiency.
Additionally, Power11 processors include quantum-resistant encryption certified by the U.S. National Institute of Standards and Technology (NIST), protecting against "harvest-now, decrypt-later" attacks and firmware integrity threats, ensuring secure data operations.
Samsung's wafer fabrication division is actively aiming for 70–80% yields on its 7nm process to secure more manufacturing orders and support its client diversification strategy. One key approach targets potential capacity constraints at TSMC, with Samsung improving process performance to capture more orders.
Beyond IBM, Samsung has previously secured wafer manufacturing contracts for Tesla and is reportedly in talks with Nintendo and Chinese fabless chip companies for custom ASIC production, including AI chips.
Industry insiders note that an increasing number of Chinese fabless chip designers are turning to Samsung, as domestic 7nm or smaller processes at SMIC remain inconsistent in yield and performance. By integrating EUV technology into its mature 7nm process, Samsung has improved chip performance and productivity, successfully attracting these clients. Samsung's proven yields for 4nm, 8nm, and 14nm processes have also contributed to growing orders from Chinese fabless companies.
