Samsung and Arm begin developing 2nm custom AI chip

Samsung Electronics and Arm ↗ 4.74% have officially begun co-developing a custom on-device AI system-on-chip, a project that could mark Samsung's most concrete step yet into the custom AI silicon market. Arm approved the initial non-recurring engineering costs for the next-generation edge AI SoC in late August and formally kicked off the effort with Samsung, according to reports citing Korean media outlet Greened.kr.tradingkey+1

Under the collaboration, Arm will supply the AI accelerator architecture, register transfer level design, and other core technologies while communicating end-customer requirements. Samsung's System LSI division will handle SoC design, and its foundry business plans to manufacture the chips using its advanced 2-nanometer process node.news.futunn+1

Industry sources indicate that OpenAI is a leading candidate as the project's end customer. The two companies already have a broad strategic relationship — Samsung and OpenAI signed a letter of intent in September 2025 covering memory supply for the Stargate initiative and enterprise AI services, and Samsung signed an enterprise deal for ChatGPT and Codex earlier this year.gsmarena+3

A Design-Plus-Manufacturing Play

The partnership is structured under a Limited Use License framework, meaning Arm's technologies are restricted to developing products for specific customers. Arm acts as technology provider and development partner rather than selling chips directly. Samsung will deliver finished products to end customers, capturing revenue across both design and fabrication.news.futunn+1

This integrated model distinguishes the effort from a standalone design or foundry contract. By linking its System LSI and foundry divisions on a single project, Samsung aims to offer an end-to-end solution that embeds its 2nm process capabilities directly into the AI chip development pipeline.moomoo

Context: Samsung's Foundry Ambitions

The project arrives as Samsung's foundry business works to attract marquee AI customers. In July, Samsung struck a wide-ranging partnership with Broadcom ↗ 0.74% valued at over $200 billion through 2030, covering sub-2nm chip manufacturing and advanced packaging. Samsung has also held separate discussions with Anthropic about a custom 2nm AI chip, though those talks remained exploratory as of early July.cnbc+2

For Samsung, successfully delivering a 2nm edge AI chip would provide a demonstrative case for its advanced-node foundry capabilities at a time when demand for on-device AI inference — which reduces latency and cloud dependence — is accelerating across the industry.tradingkey+1