Alphabet's (GOOG, GOOGL) Google, Tesla (TSLA), AMD (AMD), and Chinese automaker BYD are increasingly turning to Samsung Electronics for contract chipmaking services amid surging demand that has taxed the capacity of Taiwan Semiconductor Manufacturing (TSM), Nikkei Asia reported Wednesday, citing unnamed people familiar with the matter.

Samsung has seen a surge of demand for its chip manufacturing services from both US and Chinese companies, the report said.

Using multiple foundries for chip production can diversify supply chains but also add to costs, the report said.

Google, Tesla, AMD, BYD, and Samsung did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)