Samsung Electronics logo. /yunhap news
On the 23rd (local time), Pat Gelsinger, CEO of Intel, the world’s largest semiconductor company (based on sales), announced’IDM (Integrated Semiconductor Company) 2.0′, a future business strategy. The declaration of entry into the foundry business (consignment production of semiconductors, making semiconductors by receiving orders from customers) received attention. Intel decided to invest 20 billion dollars (22.6 trillion won) this year to build two foundry factories in Arizona.
On this day, CEO Gelsinger (CEO) clearly expressed his determination to “lower the dependence on Asia for semiconductor production and expand production facilities in the home country.” It is an analysis that the US government has taken full action with Intel in the lead to strengthen the competitiveness of semiconductors, which are called’strategic weapons. It is evaluated that the US’ policy to foster the domestic semiconductor manufacturing industry and Intel’s entry into the foundry business accordingly will be’more inconvenient than profit’ for Samsung Electronics, which aims to become’the world’s No. 1 foundry in 2030′.
Intel, “Compete and cooperate with foundry companies”
Although Gelsinger’s presentation for about 59 minutes was relatively unnoticed, there is one more negative content to Samsung Electronics. This is a mention of Intel’s use of external foundries.
Intel has’self-produced’ most of its core chips such as its flagship CPU (Central Processing Unit) so far. However, as criticism that “the level of process technology is lower than that of TSMC or Samsung Electronics’ foundry division,” he announced in the second half of last year that “we will consider entrusting some of the supplies to an external foundry.”
On this day, Gelsinger unveiled its strategy of entrusting some of its products to an external foundry such as TSMC while conducting a’foundry’ business that produces its own semiconductors and makes products for customers. If you do well, you will solve it on your own, but you will leave the shortcomings to an outside company to improve product performance. In response, Gelsinger called it’co-op-petition’ (a compound word of cooperation and competition). “Intel will have strong partnerships with them as customers, but in some cases they will compete,” he said.
Intel CEO Pat Gelsinger introduces the product at an online briefing on the 23rd. /Intel provided
“Taiwan TSMC outsourcing the main product CPU”
The interest was whether Intel left TSMC or Samsung Electronics for outsourcing CPU production, which can be said to be the flagship product. Gelsinger gave a clear answer on this day. Most of the CPUs are said to be produced by Intel. To this end, it has made it clear that it will develop the 10nm process without any problems and produce CPUs in the 7nm process by 2023. And the name’TSMC’ came out of Gelsinger’s mouth. “For our 2023 roadmap, we will also leverage our relationship with TSMC to deliver additional leadership, through collaboration with TSMC,” he said. CPU products for our client and data center customers)
TSMC logo. /AFP
Of course, in an interview with the BBC after the presentation, he said, “We’re going to use Samsung and TSMC for some of our products.” I didn’t mention it.
Samsung Electronics faces’triple bad news’
In synthesizing Gelsinger’s remarks, the evaluation that TSMC is sure to take CPU outsourcing production is predominant. It seems that Intel’s relatively preference for TSMC over Samsung Electronics is that it is a’pure foundry company’. Unlike Samsung Electronics, which directly produces its own products such as DRAM, NAND flash, and application processor (AP), and also has a foundry business, TSMC has dug only one well for 35 years. It is an analysis that Intel, who maintains a cooperative relationship with Samsung Electronics, but regards it as a’potential competitor’, would have been reluctant to expose the design of core products such as CPUs to Samsung Electronics.
The’triple bad news’ seems to be hitting Samsung Electronics, including Intel’s entry into the foundry, TSMC and Intel’s honeymoon, and the US semiconductor hegemony in earnest. Most of the semiconductor experts say, “The business environment surrounding the semiconductor business of Samsung Electronics is running unusually” or “We are at a crossroads”. Inside Samsung Electronics, some say, “Is there ever been a crisis since starting the semiconductor business?” However, there are also voices of concern that “this is not as bad as this time”.
Reporter Hwang Jeong-soo [email protected]