Samsung Faces Risk of Losing Major Clients to Intel

"Collaboration with Qualcomm and Amazon"... Declaration to Strengthen Foundry
Embarrassment Between TSMC and Latecomers

Image source=Yonhap News

[Asia Economy Reporter Kim Heung-soon] Intel, a U.S. comprehensive semiconductor company that has declared its entry into the foundry (semiconductor contract manufacturing) market, announced a collaboration with Qualcomm, a major customer of Samsung Electronics. Samsung Electronics, ranked second in the foundry industry and struggling to close the market share gap with Taiwan's TSMC, the industry leader, now faces the challenge of defending against the aggressive moves of Intel, a latecomer, putting it in a true 'sandwich' position.

On the 26th (local time), during an online technology strategy briefing, Intel unveiled its roadmap for next-generation semiconductor processes and packaging (semiconductor post-processing), announcing that it has secured Qualcomm and Amazon as customers for its foundry business. Intel plans to collaborate with Qualcomm using 2nm (1nm = one billionth of a meter) process technology scheduled for production in 2024. Amazon Web Services was introduced as the first customer in the packaging field.

Qualcomm is a U.S. fabless company specializing in semiconductor design and is the world's number one in this field. It outsources the production of its self-designed semiconductors to major foundry companies. Qualcomm is one of Samsung Electronics' large customers. According to market research firm TrendForce, as of the first quarter of this year, the global foundry market share ranking is TSMC (55%) in first place and Samsung Electronics (17%) in second.

An industry insider said, "In the foundry sector, TSMC and Samsung Electronics have divided the market by leading with advanced processes below 10nm, but if Intel enters the competition with ultra-fine processes, it could receive support from domestic fabless companies, which could affect Samsung Electronics' market share." It is also known that Amazon, the world's largest online retailer, is pushing forward with its own chip development.