Samsung Foundry to Produce Intel PCH Chipsets with Its 8 nm Node
The semiconductor industry records a strategic agreement. Samsung Foundry, Samsung Electronics' foundry, sealed a contract to manufacture key chipsets for Intel. This pact, initially reported by South Korean media, involves producing Intel's Platform Controller Hub (PCH) using advanced 8-nanometer technology. 🏭
Intel Diversifies Its Manufacturing with IDM 2.0
This step is a central component of Intel's IDM 2.0 strategy. By outsourcing part of its manufacturing to Samsung, Intel can optimize the use of its own factories (fabs). The goal is to reserve its internal capacity for next-generation processors and other higher-value products, while partners like Samsung produce essential but more standardized components.
Key Details of the Agreement:- Component: Intel Platform Controller Hub (PCH) chipsets, which manage I/O functions on the motherboard.
- Technology: Samsung Foundry's 8-nanometer (8LPP) manufacturing process.
- Intel's Role: The company retains the internal design of the chips; Samsung only handles manufacturing them.
In the semiconductor business, sometimes having the blueprints (design) is more crucial than owning the printer (factory).
A Strategic Victory for Samsung Foundry
For the Korean foundry, winning Intel as a client represents a major achievement. This contract allows it to demonstrate the competitiveness of its 8 nm node in the global market and attract more companies seeking alternatives to other industry giants, such as TSMC. Production of these units will likely begin in the coming quarters.
Implications for Samsung Foundry:- Reinforces its credibility as a top-tier contract foundry.
- Validates its 8 nm process technology with a demanding client.
- Positions it better in the aggressive competition for the external manufacturing market.
A Changing Manufacturing Landscape
This agreement underscores a trend in the industry: even integrated manufacturers like Intel now outsource selectively. While Intel concentrates its resources on high-margin areas, Samsung expands its client portfolio and expertise in mature but critical nodes. This move redefines alliances and the global chip supply chain. ⚙️