Why Facebook-parent Meta is going to Samsung for its chips

During his recent visit to South Korea, the founder and CEO of

Meta Platforms

Mark Zuckerberg suggested that the company is planning to work with

Samsung Electronics

. According to a report by The Korea Times, the country’s presidential office has confirmed that Facebook-parent is planning to source chips from

Samsung

as it plans to reduce its dependency on Taiwanese chip giant

Taiwan Semiconductor Manufacturing Company

(TSMC) in the

artificial intelligence

(

AI

) semiconductor sector.

Zuckerberg also met with Korean President

Yoon Suk Yeol

in Seoul. The report cited a senior official at Yoon's office claiming that he recognised Samsung for its status as one of the largest foundry companies in the world after the 30-minute meeting.
The official said: “Zuckerberg said Samsung's status can be the key point in their cooperation.”

Why Meta wants Samsung as a chip supplier

The Meta CEO described his company's current dependency on the Taiwanese chipmaker as "volatile." The company asked TSMC to manufacture two types of AI chips. These chips were designed by

Facebook

and Instagram-parent which were unveiled in May 2023

The official noted: “His remarks mean that Samsung's status can help in stabilising Meta's heavy reliance on TSMC under the current geopolitical situation.”
As per the report, Yoon also told Zuckerberg about the government's support for Samsung's investments in the construction of the world's largest semiconductor cluster near Seoul.
Before meeting the Korean President, Zuckerberg also had dinner with

Samsung Electronics Executive

Chairman Lee Jae-yong at the Korean firm's VIP guest house in Seoul. However, Meta remained silent on what the two discussed during that meeting.
During this meeting, the companies reportedly discussed semiconductor corporations, particularly concerning the production of AI chips. These chips are necessary for operating Meta's next-generation large language model known as Llama 3.
Zuckerberg also met the executives of LG to discuss technological cooperation related to extended reality between both companies.