Intel and Samsung Rumored to Form ‘Semiconductor Avengers’ Alliance to Challenge TSMC

October 22, 2024 – According to a report published by Maeil Business Newspaper on October 21st, Intel has reached out to Samsung Electronics to form a “foundry alliance” in order to counterbalance the dominance of TSMC in the semiconductor manufacturing industry.

The report cites an Intel executive who recently contacted Samsung Electronics, expressing the desire for a high-level meeting between the two companies. Specifically, Intel CEO Pat Gelsinger is hoping to meet with Samsung Electronics Chairman Lee Jae-yong to discuss “comprehensive cooperation measures in the foundry field.”

Since its establishment in 2021, Intel’s Intel Foundry Services (IFS) has signed contracts with Cisco and Amazon Web Services (AWS). However, despite its investments, the company has yet to attract a significant number of large clients. On the other hand, Samsung Electronics launched its foundry business in 2017 and has started to gain customers, but it still trails far behind TSMC.

According to data from TrendForce, TSMC held a 62.3% market share in the foundry business during the second quarter, while Samsung Electronics accounted for only 11.5%. Furthermore, in the cutting-edge processing field, TSMC boasts a 92% market share in 3nm and 5nm technologies, highlighting its strong advantage in high-end technology.

The potential alliance between Intel and Samsung, as suggested by the media, could lead to the exchange of process technologies, shared production facilities, and collaborative research and development of future chips.

Kim Hyung-joon, a former professor of materials engineering at Seoul National University, commented on the potential alliance, stating that “the foundry alliance between Intel and Samsung will create huge synergies, but it will still be difficult to shake TSMC’s position in the short term.”

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