Intel is not going through its most glorious stage. In the wake of the controversy surrounding the 13th and 14th Gen processors, the company has experienced a series of turbulent events that resulted in a wave of massive layoffs. And this, coupled with the impact it has lost in sectors as crucial as chip production, has caused it to seek ways to carry out historic alliances that allow it to counteract the power of the giant TSMC.
As indicated by the portal TechSpot in a recent publication, Intel launched Intel Foundry Services (its foundry business) in 2021 and has since faced many challenges in gaining significant traction in the market despite securing clients like Cisco or AWS. Therefore, the American firm has contacted Samsung Electronics, one of its main competitors, with an intention: to explore the possibility of a strategic alliance in the semiconductor foundry business. The reason? To counteract TSMC’s strength.
The presidents of Intel and Samsung will meet
Pat Gelsinger, CEO of Intel, intends to meet directly with Lee Jae-yong (president of Samsung Electronics) to discuss all aspects related to this possibility. Thus, an alliance would allow the two companies not only to collaborate on process technology, but also to share production equipment and develop joint research initiatives. In this way, while Samsung would provide its advanced 3nm GAA technology capable of improving efficiency, Intel would provide its expertise in chip packaging with its Foveros technology (and the use of PowerVia to optimize power).
TSMC, who already acknowledged that it is unable to meet the demand for artificial intelligence chips, dominated the market in the second quarter of 2024 with a 62.3% market share. Samsung, on the other hand, only has an 11.5% share, which is why they would also be interested in this alliance with Intel. And this, combined with the operations of both companies in regions such as the United States, South Korea, China, and Ireland, would provide them with an advantageous position to bypass semiconductor export restrictions, a situation that could also allow them to gain ground on TSMC.
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