Intel and Samsung Reportedly Exploring to Join Forces in ‘Foundry Alliance’ to Challenge TSMC

Intel and Samsung are reportedly exploring a strategic foundry alliance to challenge TSMC’s dominance.

Introduction

Intel and Samsung, two titans of the semiconductor industry, are reportedly exploring a strategic alliance aimed at challenging Taiwan Semiconductor Manufacturing Company (TSMC), which has long held a dominant position in the global foundry market. This potential partnership could reshape the competitive landscape of the semiconductor industry, which is critical to the future of technology innovation.

Overview: Key Points of the Intel-Samsung Alliance

  1. Intel Foundry Services (IFS) has reportedly approached Samsung to form a strategic partnership aimed at challenging TSMC.
  2. Intel and Samsung are considering a “foundry alliance” to combine their expertise in semiconductor manufacturing, research, and development.
  3. The collaboration could focus on sharing process technologies and production facilities, improving their competitive position in advanced chip production.
  4. Intel’s upcoming 18A process node, scheduled for 2025 production, features groundbreaking technologies like RibbonFET and PowerVia, critical for AI and high-performance computing.
  5. TSMC’s dominance has left limited room for competitors, but a united effort between Intel and Samsung could create significant challenges for the market leader.

Intel’s Vision for Revival through Strategic Partnerships

Intel has faced difficulties in its foundry business over the past few years. With TSMC consistently leading in semiconductor manufacturing,

Intel’s leadership has recognized the need for bold moves. Intel’s CEO, Pat Gelsinger, has reportedly initiated discussions with Samsung Electronics Chairman Lee Jae-Yong, aiming to explore the possibilities of a comprehensive collaboration between the two companies’ foundry divisions.

According to a report by Korean media outlet MK, the goal of this alliance is to challenge the rapidly expanding influence of TSMC, which has not only led the semiconductor market but has also been the primary supplier for some of the world’s largest tech companies, including Apple.

Intel and Samsung’s Struggles Against TSMC’s Dominance

Despite being global leaders in their own right, Intel and Samsung have struggled to match the scale and success of TSMC. While Intel Foundry Services (IFS) boasts an impressive product lineup, its foundry business has yet to achieve significant traction.

Similarly, Samsung, although known for its advanced node sizes and manufacturing capabilities, has experienced low production yields, limiting its ability to capitalize on market opportunities.

Samsung’s advanced manufacturing capabilities, including its focus on 3nm and smaller nodes, have faced delays and challenges in terms of yield. These issues have prevented Samsung from achieving the scale necessary to truly rival TSMC. However, combining Samsung’s cutting-edge node technologies with Intel’s innovations in chip architecture could lead to a formidable partnership capable of narrowing the gap with TSMC.

Intel’s 18A Node: A Game-Changer for AI and High-Performance Computing

A major focus of Intel’s future foundry services is the upcoming 18A process node, scheduled for production in 2025. Intel’s 18A features breakthrough technologies such as RibbonFET and PowerVia, designed to enhance scalability and efficiency in AI computing. This node represents a significant leap forward in the development of semiconductors for AI applications and high-performance computing, areas where Intel aims to regain its competitive edge.

RibbonFET, Intel’s first new transistor architecture since FinFET, is designed to provide faster switching speeds and improved power efficiency.

PowerVia, on the other hand, is a backside power delivery technology that optimizes power efficiency by routing power directly through the back of the chip.

These innovations could be key differentiators for Intel in the semiconductor industry, particularly in the context of AI, 5G, and data centers.

Potential Scope of the Alliance: R&D and Manufacturing Synergy

Although the exact details of the potential Intel-Samsung alliance remain unclear, reports suggest that the collaboration may encompass multiple aspects of the semiconductor manufacturing process. This could include joint research and development efforts, shared use of production facilities, and exchanging process technologies between the two companies.

Both Intel and Samsung bring unique strengths to the table. Samsung’s expertise in memory technologies, advanced node sizes, and manufacturing scale could complement Intel’s innovations in chip architecture and AI-driven technologies.

By leveraging each other’s strengths, the two companies could significantly enhance their competitiveness against TSMC.

The semiconductor industry is facing a surge in demand, driven by the explosion of AI applications, 5G networks, and the proliferation of smart devices.

If Intel and Samsung successfully form a strategic alliance, they could better position themselves to meet this growing demand while pushing the boundaries of what’s possible in chip design and manufacturing.

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Intel’s Broader Strategy of Alliances

Intel’s potential alliance with Samsung is part of a broader strategy aimed at reviving its foundry business and regaining leadership in semiconductor manufacturing.

Recently, Intel has been expanding its partnerships across the industry, including a notable collaboration with AMD, often referred to as the “x86 alliance.”

This x86 partnership with AMD involves cooperative efforts in the development of next-generation processors, signaling Intel’s openness to working with former rivals to strengthen its position in the market.

Intel appears to have recognized that going it alone is no longer a viable strategy in the increasingly competitive semiconductor landscape.

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Challenging TSMC’s Reign: A New Competitive Era

TSMC has enjoyed a significant lead in the foundry business, thanks to its ability to produce chips at advanced nodes such as 3nm and 5nm.

As the primary supplier for companies like Apple, Qualcomm, and Nvidia, TSMC’s dominance has left little room for challengers.

However, a combined effort between Intel and Samsung could significantly disrupt the market. By pooling resources, sharing technologies, and collaborating on cutting-edge research, Intel and Samsung could create a new competitive dynamic in the semiconductor industry, offering an alternative to TSMC’s near-monopoly.

If the alliance materializes, it could result in new opportunities for companies looking to diversify their supply chains. A strengthened Intel-Samsung partnership might attract major tech players seeking alternative suppliers for their chip needs, especially given the geopolitical uncertainties surrounding the semiconductor supply chain.

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Conclusion:

Intel and Samsung’s potential alliance represents a bold move in the semiconductor industry, one that could reshape the global foundry market and challenge TSMC’s reign. With both companies struggling to compete individually, a partnership could provide the scale, innovation, and manufacturing capabilities needed to take on TSMC.

As the semiconductor industry continues to evolve, alliances like the one between Intel and Samsung could become increasingly common, as companies seek to pool their resources and expertise to meet the growing demand for advanced chips. If successful, this partnership could usher in a new era of competition and innovation, with significant implications for the future of technology.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Priyadarshi is a prominent figure in the world of technology and semiconductors. With a deep passion for innovation and a keen understanding of the intricacies of the semiconductor industry, Kumar has established himself as a thought leader and expert in the field. He is the founder of Techovedas, India’s first semiconductor and AI tech media company, where he shares insights, analysis, and trends related to the semiconductor and AI industries.

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. He couldn’t find joy working in the fab and moved to India. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL)

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