US media coverage
The news that Samsung Electronics has signed a semiconductor consignment production contract with Intel was delivered through the US IT media.
On the 20th (local time), SemiAccurate reported that Intel will produce 15,000 300mm wafers per month at Samsung Electronics’ Austin Foundry factory in the second half of this year. As the Austin plant has 14-nano process technology, the production chip is more likely to be a graphics processing unit (GPU) than a central processing unit (CPU). In the future, when the expansion of the second plant in Austin is completed, there is a possibility that high value-added products will be mass-produced in the 5 nano or more advanced process.
According to Bloomberg on the 15th, Pat Gelsinger, the new CEO of Intel, said, “We are considering whether to leave the traditional method and leave the production to an outsourcer like TSMC. The reason he said about the possibility of consignment production is that Intel is having difficulty in introducing a microfabrication of 7nm or less. TSMC and Samsung Electronics are the only companies in the world that can produce 10nm or less chips. AMD, which is competing with Intel in the central processing unit (CPU) market, produces 7nm or less products through TSMC.
The industry saw that Intel put more weight on TSMC than Samsung Electronics for foundry production. This is because TSMC is evaluated to be more technologically advanced than Samsung Electronics. In terms of security, TSMC also considered higher security. This is because Samsung Electronics is an integrated semiconductor company (IDM) that even designs semiconductors, while TSMC is a pure foundry that only produces on commission. News that TSMC is preparing a 4·5 nano line to win orders for Intel was also reported.
Semae Accurit analyzed that Intel had signed contracts with both TSMC and Samsung Electronics. Concurrent contracts rather than monopoly contracts provide an advantage in price bargaining power and reduce production uncertainty. As TSMC’s Arizona plant is being prepared in 2023, it was seen that mainland partners were also needed during the 2021 and 2022 gaps.
An official from Samsung Electronics said, “We cannot confirm customer-related matters.”
On the 21st (local time) at 2 pm, Intel will announce the 4Q 2020 earnings and hold a conference call. It is expected to reveal plans related to semiconductor foundry at this meeting.
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