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Intel and Samsung think of forming a glorious alliance

by on23 October 2024


Fight off the TSMC empire

Intel Foundry has reportedly reached out to Samsung to propose a "foundry alliance," aiming to create a strategic collaboration to challenge the growing influence of TSMC.

Intel's foundry business has faced difficulties, and the company is now seeking a potential revival, exploring the possibility of partnerships with competitors like Samsung.

A report by the Korean media outlet MK reveals that Intel's CEO, Pat [kicking] Gelsinger, has directed one of the firm's executives to organise a meeting with Samsung Electronics Chairman Lee Jae-Yong. The aim is to develop a "comprehensive collaboration" between their respective foundry divisions.

Intel Foundry Services (IFS) and Samsung Foundry, considered challengers in the semiconductor market, have been working to rival TSMC but have encountered limited success. While Intel has a strong product line-up, TSMC continues to dominate the market, leaving minimal room for competitors. Samsung, despite having more advanced "node sizes," has struggled with low production yields, placing it at a disadvantage in the industry.

Intel's cutting-edge process node, Intel 18A, is set for production in 2025, featuring technologies like RibbonFET and PowerVia. These innovations will enable Intel Foundry customers to achieve greater scalability and efficiency, critical for advancing AI computing.

Although the report does not detail the specific nature of the collaboration, it suggests that Intel and Samsung may partner on research and development, share production facilities, and exchange process technologies. Such a partnership could prove transformative, combining Samsung's expertise with Intel's capabilities to alter the dynamics of the semiconductor market.

Intel appears to have recognised that going it alone in the industry is no longer sustainable. Its recent "x86 alliance" with AMD is another sign of the company expanding its strategic partnerships. If the collaboration between IFS and Samsung Foundry materialises, TSMC could face significantly heightened competition.

 

Last modified on 24 October 2024
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