Intel and Samsung to Form "Foundry Alliance" to Compete With TSMC, Notes Report

[AleksandarK]

Last time we reported on Samsung Foundry, the company publicly apologized for its setbacks in the memory and foundry divisions, especially as its 3 nm GAA FET node has failed to attract new customers. On the other hand, Intel has also been struggling with its Foundry unit bleeding billions of Dollars in a bid to secure its spot as one of the best foundries for companies to manufacture their chips. There is no better pair than two struggling foundries looking for customers and new ways to conduct research than Intel and Samsung. According to an exclusive by South Korean media outlet "MK," it has reportedly been confirmed that Intel approached Samsung to form a "Foundry Alliance" to boost their foundry business units.

According to the source, Intel CEO Pat Gelsinger is reportedly eager to meet with Samsung Electronics Chairman Lee Jae-yong face-to-face to discuss "comprehensive collaboration in the foundry sector." What exactly will happen between the two is still unclear. Back in 2014, GlobalFoundries and Samsung formed a partnership for 14 nm FinFET offerings, and that was a wide success. Jointly developing a node and offering it in their foundry units could be the target goal for Intel and Samsung. At some level, research and development, as well as sharing valuable manufacturing information on yield improvements, should be beneficial for both to put together the final pieces of the semiconductor puzzle.



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[TheLostSwede]

You'd think TSMC would cut off Intel as a customer if this comes true.

 

[AleksandarK]

You'd think TSMC would cut off Intel as a customer if this comes true.

Only if Intel didn't spend so much as a customer

 

[Chaitanya]

A bit late, also Samsung should vary given how abruptly IMFT came to an end.

 

[azrael]

Two wrongs don't necessarily make a right, although... minus and minus is plus.

 

[TheLostSwede]

A bit late, also Samsung should vary given how abruptly IMFT came to an end.

That was different though, as they shared foundries, this is more sharing nodes from what it sounds like, much like what Samsung, IBM and Glo-Fo did some years ago.
That didn't quite work out though, as it wasn't as easy to move between the three foundries as it was initially said to be, so very few customers produced with more than one of the three.

 

[Daven]

Here’s a way to compete with TSMC:

MAKE BETTER NODES AND STOP USING THEIRS!!!

 

[Wirko]

There's also the Intel + IBM alliance of some sort, possibly involved more in basic research than foundry technology.

If everyone else conspires against the monopolist, is that a cartel?

 

[RUSerious]

Here’s a way to compete with TSMC:

MAKE BETTER NODES AND STOP USING THEIRS!!!

They are working at it. This is the proverbial problem of turning an aircraft carrier around with a rowboat. Intel's cash burn rate is a serious problem though.

 

[Carillon]

Just put a TSMC sticker next to the AMD one on that rearview mirror, and remember to spell it backwards, for immersion

 

[Darmok N Jalad]

Two heads are better than one…unless you’re dealing with a Hydra.

 

[AnarchoPrimitiv]

Only if Intel didn't spend so much as a customer

That capacity would be bought up by someone else in an instant...

 

[W1zzard]

Only if Intel didn't spend so much as a customer

What's much more important than money is that as long as Intel is using TSMC, it strengthens TSMC's importance for U.S. interests including National Security, which helps defend TW against the Chinese

 

[THANATOS]

What's much more important than money is that as long as Intel is using TSMC, it strengthens TSMC's importance for U.S. interests including National Security, which helps defend TW against the Chinese

Taiwan = Republic of China (ROC).
So what you wrote at the end sounds pretty funny to me even though you actually meant PRC.

 

[eidairaman1]

Two wrongs don't necessarily make a right, although... minus and minus is plus.

Two wrongs don't make a right

Taiwan = Republic of China (ROC).
So what you wrote at the end sounds pretty funny to me even though you actually meant PRC.

Semantics

 

[Patriot]

Samsung and Intel have both been struggling on their finer nodes... hopefully this knowledge share will give us more fab supply, allow for some accelerator competition against NVidia. Can't truly compete against them if you have to wait for their staggering order to be complete.

https://www.reuters.com/technology/intel-manufacturing-business-suffers-setback-broadcom-tests-disappoint-sources-2024-09-04/

Intel is failing to get customers as yields are too bad... and they are burning money to produce things at low yields rather than delay the product and fix the fab problems.

Samsung's 3nm yields are allegedly below 20%... 4nm was 35%, while TSMC 4n was... 70%

Taiwan = Republic of China (ROC).
So what you wrote at the end sounds pretty funny to me even though you actually meant PRC.

Why dude? I am sorry that you aren't having a good day/week/life... but being a pedant isn't the answer, especially when there isn't really anything to correct.
The T in TSMC clearly stands for Republic of China, lol.

Those of us in the tech sector, and really anyone should care of the claims China (mainland) makes. They are taking note of how the world is dealing with Russia in Ukraine and trying to figure out what they can get away with. We already turn a blind eye to soo many human rights violations by the PRC.

For stability in an unstable world, we need TSMC, Samsung and Intel fabs working in the US and Europe. It's not like SK is free from danger.

 

[StimpsonJCat]

Is this an alliance of second-best has-beens with sour grapes and the distinct odour of desperation to stay relevant as they both lose customers to TSMC???

But one thing is for sure, I don't trust Samsung to keep their photocopiers away from other people's stuff.

 

[THANATOS]

Why dude? I am sorry that you aren't having a good day/week/life... but being a pedant isn't the answer, especially when there isn't really anything to correct.

I clearly stated I understood how he meant It, that should be enough.
FYI, I have a pretty good day/week/life, so you don't need to feel sorry for me dude, but thanks for asking.

And back to this article.
I don't have a problem with It or anything like that, but will this alliance actually survive?
What I mean is that Intel foundry is not in a good shape. $7B loss last year is a lot, and this or next year I don't believe it will be lower when so many chips are made by TSMC.
I personally think Intel will have to sell their foundry to someone else unless they fix their process and start producing chips in their fabs once more.
It's not realistic to support their foundries from other divisions profits when they are not that big to begin with.