Intel and Samsung Exploring a Strategic Alliance
Intel CEO Pat Gelsinger has requested a meeting with Samsung Electronics’ chair, Lee Jae-yong, to discuss potential cooperation in the foundry sector. This partnership could enable the two companies to exchange manufacturing process technologies, share production facilities worldwide, and collaborate on R&D. The motivation behind the potential alliance is to counter the growing success of TSMC, especially at the 5nm and 3nm processing nodes, where both Intel and Samsung have struggled to compete. Reports indicate that Intel faces difficulties qualifying its latest 18A process, while Samsung has apologized publicly for underperforming in the foundry space.
Facing Challenges, Intel and Samsung Consider a Bold Move
Intel and Samsung have been losing ground to TSMC, which held 62.3% of the foundry market in Q2 2024, with Samsung trailing at 11.5%. Intel’s own foundry business has been inconsistent, and its delay in building fabs in Germany highlights financial strains. Samsung, though dominant in memory chips, has lagged in logic chip manufacturing. A potential Intel-Samsung foundry alliance could help both companies improve manufacturing economies of scale and regain competitiveness. The collaboration could even lead to Intel outsourcing its manufacturing operations, something speculated by industry observers.
My Take
An Intel-Samsung alliance could be a game-changer, but to catch up with TSMC, both companies need more than shared resources. They’ll have to demonstrate tangible technological improvements to win over skeptical customers.
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Link to article:
https://www.eenewseurope.com/en/intel-seeks-foundry-alliance-with-samsung-says-report/
Credit: eenews