Samsung included in Intel outsourcing talks

January 11, 2021 //By Peter Clarke
Samsung included in Intel outsourcing talks
Samsung's share price spiked on Monday January 11 on reports that the South Korean electronics giant may manufacture some of Intel's most advanced chips.

Back in July 2020 Intel CEO Bob Swan said that the debut of his company's own 7nm manufacturing process has been delayed by a further 6 months due to yield issues. He also indicated that Intel would make use of foundries as a contingency plan (see Intel goes foundry for 7nm due to yield issues ).

Intel already makes use of leading foundry TSMC for some manufacturing, primarily where it has bought startup companies that are already on TSMC manufacturing processes.

TSMC is now the acknowledged semiconuductor manufacturing leader and is making chips for companies such as Apple using its FinFET 7nm and 5nm manufacturing process while Intel has failed to bring up its own 7nm FinFET process. However, TSMC's leading-edge processes are running at full capacity and the foundry may not be able to – or may choose not to – accommodate all the extra wafer demand that could come from Intel. This could have led to Intel's discussions with Samsung as th means to gain extra capacity and gain some competitive-edge on pricing.

However, such manufacturing contracts would apply to chips for delivery in 2023, according to a Bloomberg report.

Swan has reportedly promised investors he will outline plans for outsourcing and how Intel will get its own production back on track, when the company reports its financial results on January 21.

Related links and articles:

Intel goes foundry for 7nm due to yield issues

Foundries booming near-term but Samsung faces risks

Seven customers get TSMC's 5nm production


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