Intel announces re-entering foundry business in three years
“Intel competitiveness question…competitor appearance, negative”
Photo = EPA
Intel, a global semiconductor company, won the game. Taiwan TSMC and Samsung Electronics(81,200 +0.25%)It decided to jump into the semiconductor consignment production (foundry) market led by the company. Yeouido Securities Market predicted that although it was a’question’ about Intel’s competitiveness, it could have a negative impact on Samsung Electronics due to the increase in competitors.
Intel invests 22 trillion won to establish a new semiconductor plant… Entered the foundry business
According to the financial investment industry on the 25th, Intel decided to build two new semiconductor factories in Ocotillo, Arizona, with an investment of 20 billion dollars the day before. This is to regain the semiconductor manufacturing competitiveness held by Asia.
Intel announced that it will also enter the foundry market where Taiwan and Korea are prominent. In 2016, Intel said it was expanding its foundry business to produce chips based on the construction method (architecture) of British semiconductor design company ARM, but it did not produce any visible results. Eventually, in 2018, Intel quit its foundry business, and this time it announced a re-entering the foundry.
Pat Gelsinger, CEO of Intel, told a global press conference, “Global semiconductor demand is steadily increasing, but 80% of semiconductor manufacturing facilities are concentrated in Asia.” “I will establish two new factories.”
He said, “We have been passive in the foundry market and have not done our best,” he said. “We will expand the foundry business into an independent business and provide all the capabilities Intel has.”
/ Hankyung DB
“Business competitiveness is still questionable…competitors emerge, negative”
In the global foundry market, Taiwan TSMC dominates more than half (56%) of the market share. Samsung Electronics accounted for 18%, global foundry 7%, UMC 7%, and SMIC 5%.
Experts assessed that it was questionable how competitive Intel could be in such a market structure. It is explained that it is difficult to have a big impact on the industry right away.
“Intel’s full-fledged entry into the foundry business will not have a significant impact on the industry until 2023,” said Song Myung-seop, a researcher at Hi Investment & Securities. I will,” he predicted.
It is judged that the increase in competitors itself is negative. It is diagnosed that it will have a greater negative impact on Samsung Electronics, which is inferior to tsmc in terms of not only market share, but also cost, yield, and capacity.
Hwang Min-sung, a researcher at Samsung Securities, said, “From the perspective of Samsung Electronics, which sees the effect of falling water from TSMC, it will be a bad thing for Samsung Electronics in terms of the entry of new competitors.” It is worth paying attention to the fact that it is a rising issue,” he explained.
Song-ryul Lee, reporter of Hankyung.com [email protected]