[News] Intel Explores Foundry Alliance with Samsung in High-Level Talks

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According to a report by the Maeil Business Newspaper, U.S. semiconductor giant Intel has reached out to Samsung Electronics to explore the possibility of forming a foundry alliance.

Citing sources in the semiconductor industry, the report reveals that a senior Intel executive recently requested a high-level meeting between the two companies. Intel’s CEO, Pat Gelsinger, is reportedly seeking a direct meeting with Samsung Electronics Chairman Lee Jae-yong to discuss comprehensive cooperation plans for their foundry divisions.

Since the establishment of Intel Foundry Services (IFS) in 2021, Intel has secured contracts with Cisco and AWS but has struggled to attract larger-scale clients. Samsung Electronics, which launched its foundry business in 2017, has gained some traction with customers but still trails far behind TSMC.

According to data from TrendForce, in the second quarter of this year, TSMC and Samsung held 62.3% and 11.5% market shares in the foundry sector, respectively.

The report also highlights that if an Intel-Samsung foundry alliance materializes, the two companies could collaborate on various fronts, including process technology exchanges, shared production equipment, and joint research and development (R&D) efforts.

Samsung Electronics is known for its advanced 3nm GAA (gate-all-around) technology, which enhances performance and power efficiency in fine processes,. Meanwhile, Intel possesses technologies such as Foveros, which combines chips produced using different processes into a single package, and PowerVia, which improves power efficiency. These combined strengths could be crucial in developing high-performance, low-power designs for AI, data centers, and mobile application processors.

Additionally, Samsung operates manufacturing facilities in the U.S., South Korea, and China, while Intel has facilities in the U.S., Ireland, and Israel, enabling potential collaboration or equipment sharing when needed. The report also notes that with tightening controls on advanced semiconductor exports, particularly from the U.S. and EU, regional production capabilities are becoming increasingly important.

However, both Samsung and Intel declined to confirm whether a top-level meeting will take place, according to the Maeil Business Newspaper.

(Photo credit: Intel)