INTEL AND SAMSUNG'S STRATEGIC FOUNDRY ALLIANCE: A NEW CHAPTER IN THE SEMICONDUCTOR INDUSTRY
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Author: Muhammad Zuhair
Intel is making strategic moves to reshape the semiconductor industry. Reports suggest that Intel Foundry Services (IFS) is in discussions with Samsung for a potential "foundry alliance" aimed at challenging the dominance of Taiwan's TSMC. This collaboration, if realized, could mark a turning point for both companies as they look to regain market share in the competitive semiconductor space.
A JOINT STRATEGY TO COMPETE WITH TSMC
Intel's foundry business has faced challenges recently, and the company is actively seeking ways to make a strong comeback. A key part of this strategy appears to be forming alliances with other industry leaders, including Samsung. According to a report from the Korean media outlet MK, Intel's CEO Pat Gelsinger has directed company executives to arrange a meeting with Samsung Electronics Chairman Lee Jae-Yong to discuss a "comprehensive collaboration" involving their respective foundry divisions.
WHY THIS PARTNERSHIP MATTERS
Both Intel Foundry Services (IFS) and Samsung Foundry have been striving to compete with TSMC, the industry leader in semiconductor manufacturing. While IFS has built a solid portfolio of advanced products, it struggles to capture market attention. On the other hand, Samsung Foundry, despite having superior "node sizes," faces yield rate issues that have hindered its progress.
Although specific details of the partnership remain undisclosed, the alliance is expected to focus on joint R&D efforts, sharing production facilities, and exchanging process technology. This blend of Samsung's expertise in design and Intel's advanced manufacturing capabilities could result in significant innovations.
WHAT THIS MEANS FOR THE FUTURE OF AI AND COMPUTING
Intel's 18A process node, set to launch in 2025, is central to the company’s plans for future growth. Featuring technologies like RibbonFET and PowerVia, this new node aims to deliver greater processing power and energy efficiency, particularly in AI computing. A partnership with Samsung could accelerate the production of this advanced technology, allowing both companies to challenge TSMC's hold on the market.
A NEW APPROACH: TEAMING UP WITH COMPETITORS
Intel's shift in strategy reflects a recognition that collaboration can be more beneficial than competition alone. The recent "x86 alliance" with AMD exemplifies this new direction, and a partnership with Samsung could further expand Intel's market reach. If formalized, this collaboration has the potential to reshape the semiconductor landscape, giving TSMC serious competition.