Display driver chips (DDIs) have become an unexpected bottleneck for Samsung. The company's sole supplier for these chips, Taiwan's UMC, has had its 22 nm production lines running at full capacity, forcing Samsung to cut its September production targets by 10 percent as it works on the Galaxy Z Fold 8.

The shortfall disrupted Samsung's manufacturing plans, and the company now wants to make sure a single supplier can never stall its output again.

GlobalFoundries enters the picture

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To reduce its reliance on UMC, Samsung is preparing to add GlobalFoundries to its supplier list for display chips. The goal is straightforward: if one foundry's capacity fills up, production at Samsung can keep moving.

If negotiations go through, GlobalFoundries' fabs in Germany and Singapore would be brought into the production chain. Chips from these facilities are expected to find their way into entry-level and mid-range Galaxy A series devices toward late 2027.