Intel Corp. may have reached out to Samsung Electronics to explore a potential collaboration on semiconductor foundry operations to mount a challenge to global foundry leader Taiwan Semiconductor Manufacturing Co (TSMC).
According to a report from Korea’s Maeil Business News, the deal would form a foundry alliance with Intel CEO Pat Gelsinger reportedly seeking a direct meeting with Samsung Electronics Chairman Lee Jae-yong. This meeting would hammer out details for a collaborative effort for their foundry divisions.
Both Intel and Samsung have been struggling with their own semiconductor manufacturing operations to be able to compete with TSMC, the Taiwanese company that is far and away the largest foundry in the world.
Intel just in the past few months made the decision to spin off Intel Foundry into an independent subsidiary while at the same time receiving direct funding through the CHIPS and Science Act. In September, Intel received $3 billion from the act after also receiving $8.5 billion to help with the construction of two fabs in Arizona, two fabs in Ohio and expansions to Intel’s New Mexico and Oregon facilities.
Like Intel, Samsung was rumored to be considering spinning off its foundry business to divest itself of the semiconductor manufacturing portfolio and focus on more core technologies. However, Jae-yong said Samsung had no plans to spin off its foundry business but instead it would be expanding operations with potentially more fabs in America at its Tyler, Texas, location and more.
A win-win?
A collaboration between Intel and Samsung would potentially serve both companies and their desire to expand semiconductor manufacturing operations but get some help along the way. For Samsung, it would allow a growth path as well as help with operational costs and maybe even access to Intel’s advanced packaging technologies. For Intel, it would gain some potential semiconductor manufacturing exchange including edge technologies where it is lagging Korea and Taiwan.
The combined efforts would also be able to mount at least a potential challenge to TSMC that holds about 62.3% of the foundry market share compared to Samsung’s just 11.5%, according to market research firm TrendForce.
The collaboration could operate on various fronts including:
- Process technology exchange
- Shared production equipment
- Joint R&D efforts
Since Intel made the decision to spin off Intel Foundry and had to lay off a significant number of its workers, many rumors have emerged regarding the company. Anything from selling parts of the company to various competitors to Qualcomm potentially buying Intel proper. And everything in-between regarding Intel Foundry.
So, while Samsung and Intel have declined to comment about a potential collaboration or meeting, it could be possible. Or it could be just another rumor that won’t come to fruition.
