International Business Machines Corp. on Monday announced it was making a new semiconductor for data centers that has three times the power of its older version.
Samsung Electronics Co. will manufacture the new-generation Power10 microchip designed for heavy-duty use inside data hubs, IBM said.
The New York-based technology company said the chip would be produced using Samsung's 7-nanometer manufacturing technology. It will integrate Samsung's advanced semiconductor technology with IBM's central processing designs, the statement said.
IBM's Power10 has some similarities to Advanced Micro Devices, Inc.'s 7-nanometer chip manufactured by Taiwan-based chipmaker Taiwan Semiconductor Manufacturing Co.
IBM has worked with Samsung in research and development for more than 10 years. Building the Power10 will help the South Korea company compete with Taiwan Semiconductor and American group Qualcomm.
Both IBM and AMD rely on external semiconductor manufacturers to compete with Intel Corp. - one of the few remaining chip-builders to design and make its own semiconductors.
Three of the 10 fastest computers in the world are powered by IBM microchips. It says the Power10 can more accurately crunch out heavy artificial intelligence work. The Power10 can perform many times faster compared with its precursors.
In 2019 Samsung said it was spending $116 billion to boost its nonmemory business and dominate the high-technology market. Samsung, the biggest memory-chip builder in the world by revenue, announced a program to enhance its microchip business with more capital funding for its foundry and nonmemory operations. It will spend $60 billion for domestic chip projects and the rest for manufacturing, Samsung said.
