Samsung Partners with Arm to Develop 2nm Edge AI Custom Chips; OpenAI Reported as Key Customer

Samsung 11

Tradingkey - September 4, according to Korean media Greened.kr citing semiconductor industry sources, Arm Holdings (ARM) has approved the allocation of one-time engineering fees (NRE) for next-generation on-device AI system-on-chip (SoC) development, and officially kicked off a joint R&D project with Samsung Electronics. The project adopts a cooperation model where Arm provides core technology while Samsung handles design and manufacturing, with plans to mass produce using 2nm advanced process.

The report cited industry insiders revealing that the potential final customer for this project is OpenAI. As AI capabilities accelerate their extension from cloud to edge devices, if OpenAI further expands into on-device AI, its demand for dedicated AI chips is expected to rise accordingly.

Arm Approves NRE, On-Device AI SoC Project Officially Launched

The report stated that Arm approved the one-time engineering fees for next-generation on-device AI SoC development at the end of August, and the joint project with Samsung was simultaneously launched. This custom chip is specifically designed for on-device AI, capable of completing computing locally on smartphones and other edge devices without routing through the cloud, thereby reducing cloud computing pressure while improving response speed and data privacy.

The cooperation adopts a Limited Use License (LUL) framework, where the technology provided by Arm is restricted to specific customer product development. From a business model perspective, Arm is not a chip seller but rather a core technology provider and commissioned development partner; design and manufacturing are entirely handled by Samsung, with chips delivered directly to end customers upon completion and settlement payments made accordingly.

Clear Division of Labor: Samsung Handles 2nm Mass Production, Arm Provides Core IP

The division of responsibilities between the two parties is clear: Samsung Electronics' System LSI division will handle SoC design based on Arm's AI architecture, while the foundry division will utilize advanced process technology to achieve mass production using 2nm process; Arm will provide its self-developed AI accelerator architecture and RTL design technology and other key design technologies, while also conveying end-customer requirements to Samsung and coordinating the entire project development progress.

| Link | Responsible Party | Specific Content |

|------|------------------|------------------|

| Core Technology | Arm | AI Accelerator (AIC) architecture, RTL design technology, customer requirements communication and progress coordination |

| SoC Design | Samsung System LSI | Complete chip design based on Arm AI architecture |

| Mass Production Manufacturing | Samsung Foundry | Adoption of 2nm advanced process |

Significance for Samsung: Design + Manufacturing Synergy, 2nm Mass Production as Demonstration

For Samsung, this project is expected to form a complete AI chip solution encompassing "design + manufacturing"—the System LSI and foundry businesses collaborating within the same project, directly integrating its advanced process capabilities into the AI chip development process.

Especially on the foundry side, practical development and mass production experience with 2nm on-device AI chips holds significant demonstration value. If the project progresses smoothly, Samsung can leverage this to accumulate mass production case studies serving AI chip customers with advanced processes, providing references for subsequently securing more AI accelerator and custom SoC orders. Against the backdrop of continuous AI chip demand spreading to edge devices, whether Samsung can leverage Arm and the potential OpenAI project to break into the custom AI chip market will become a new highlight for the synergistic growth of its System LSI and foundry businesses.

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