Intel Turns To Samsung For Help Keeping Up With AMD, Rumor Claims
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Intel turns to Samsung for help keeping up with AMD, rumor claims
Intel is reportedly in talks with Samsung to outsource some of its chip production to the Korean giant, as it struggles to keep up with the demand and competition from AMD.
According to a report by Bloomberg, Intel is considering outsourcing some of its 14-nanometer and 10-nanometer chips to Samsung's foundries, which could help Intel boost its output and reduce its reliance on its own factories.
Intel has been facing a series of challenges in recent years, including delays in its 10-nanometer and 7-nanometer processes, supply chain disruptions caused by the pandemic, and fierce competition from AMD, which has been gaining market share with its Ryzen and Epyc processors based on the advanced 7-nanometer and 5-nanometer technologies from TSMC.
Intel's CEO Pat Gelsinger has vowed to restore Intel's leadership in the chip industry, and has announced a $20 billion investment plan to build two new fabs in Arizona, as well as a new business unit called Intel Foundry Services, which will offer chip manufacturing services to other companies.
However, these initiatives will take time to bear fruit, and Intel may need some short-term solutions to meet the growing demand for its chips, especially in the PC and server markets. That's where Samsung could come in handy, as it has excess capacity and expertise in chip fabrication.
Samsung is already one of the world's largest chipmakers, and has been producing chips for companies like Apple, Qualcomm, Nvidia, and IBM. Samsung is also one of the few companies that can rival TSMC in terms of technology and scale, as it has been developing its own 7-nanometer and 5-nanometer processes, as well as investing in the next-generation 3-nanometer technology.
The report by Bloomberg claims that Intel and Samsung are still in early discussions, and no final decision has been made yet. It also notes that Intel may face some regulatory hurdles in outsourcing its chips to Samsung, as some of its products are used for military and national security purposes.
If the deal goes through, it could be a win-win situation for both Intel and Samsung. Intel could benefit from Samsung's capacity and technology, while Samsung could gain a major customer and a stronger foothold in the chip industry. However, it could also pose a threat to AMD, which relies heavily on TSMC for its chip production.
Intel's move to outsource some of its chip production to Samsung could also have implications for the global chip industry, which has been facing a severe shortage of supply and rising costs. The chip shortage has affected various sectors, such as automotive, consumer electronics, gaming, and cloud computing, and has prompted governments and companies to take measures to boost their chip capabilities and resilience.
Some analysts believe that Intel's outsourcing deal with Samsung could help ease the chip shortage in the short term, as it could free up some of Intel's own capacity for other customers. However, others argue that it could worsen the situation in the long term, as it could reduce Intel's incentive to invest in its own fabs and innovation, and increase its dependence on external suppliers.
Moreover, Intel's outsourcing deal with Samsung could also trigger a response from TSMC, which is currently the dominant player in the chip foundry market. TSMC may try to secure more orders from AMD and other customers, or offer more incentives and discounts to keep them loyal. TSMC may also accelerate its expansion plans and technology development, to maintain its edge over Samsung and Intel. aa16f39245