Canadian computing startup Tenstorrent has recently announced a collaboration with global technology leader Samsung Electronics, known for its chip and smartphone manufacturing prowess. This partnership involves Samsung’s production of cutting-edge next-generation artificial intelligence (AI) chipsets for Tenstorrent.

Samsung Electronics, renowned for its memory chip manufacturing expertise, has entered into an agreement with Tenstorrent, a Canadian computing startup. The collaboration aims to manufacture next-generation AI chipsets, or chiplets, designed to be highly versatile and suitable for applications spanning from edge devices to data centers. Samsung’s Foundry Design Service team has been selected by Tenstorrent for the production of these chiplets, ensuring top-notch quality and advanced manufacturing capabilities.

Jim Keller, CEO of Tenstorrent, expressed confidence in Samsung Foundry’s commitment to pushing semiconductor technology forward. This aligns seamlessly with Tenstorrent’s vision for advancing RISC-V and AI technologies. Jim Keller stated, “Samsung Foundry’s dedication to advancing semiconductor technology aligns with our vision for advancing RISC-V and AI, making them an ideal partner to bring our AI chiplets to market.”

Marco Chisari, the head of Samsung’s U.S. Foundry business, emphasized that Samsung’s state-of-the-art silicon manufacturing nodes will accelerate Tenstorrent’s innovations in these domains. This partnership holds great promise for significant advancements in AI and computing technology.

The collaboration between Tenstorrent and Samsung comes at a time when Samsung anticipates a reduction in its chip deficit during the third quarter. This is primarily attributed to the ongoing reduction in chip production. The strategic aim of this partnership is to address the persistent oversupply issue in the chip market.

Earlier in the year, Samsung, along with industry peers like SK hynix Inc. and Micron Technology Inc., took steps to reduce chip production in response to the prolonged chip glut. Analysts predict that Samsung’s Device Solutions (DS) division, responsible for its chip business, will report a third-quarter loss of approximately 4 trillion won ($2.96 billion), a slight improvement from the 4.35 trillion won loss recorded in the second quarter.

Analyst Kim Dong-won at KB Securities explained that Samsung has intensified its production cuts for the second half of the year, reducing DRAM production by 30% and NAND Flash production by 40%. This is an increase from the 20% and 30% cuts implemented in the first half. These production adjustments aim to bring supply and demand into balance, ensuring a more stable and sustainable chip market.

Samsung’s DS division experienced its first financial loss in 14 years during the first quarter of this year due to growing chip inventories amid weakening global demand. Prior to this, the division had reported losses only in the first quarter of 2009. The strategic measures taken to adjust chip production are pivotal for its long-term profitability and market stability.

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