Rumor has it that Intel is in talks with Samsung to form a foundry alliance aimed at competing with TSMC. As it stands, TSMC holds a commanding lead in the foundry market over both Samsung Electronics and Intel. However, South Korean experts suggest that any significant impact from this potential alliance is unlikely in the short term.

According to a report by the Korea Daily Economic News, industry insiders have indicated that a senior Intel executive recently reached out to Samsung to propose a high-level meeting. Intel CEO Pat Gelsinger is reportedly eager to meet directly with Samsung Chairman Lee Jae-Yong to discuss comprehensive collaboration in the foundry space.

Should Intel and Samsung join forces, their collaboration could involve sharing process technologies, production facilities, and joint research and development efforts. Samsung boasts advanced process capabilities, such as 3nm Gate-All-Around (GAA) technology, while Intel offers Foveros packaging technology that integrates chips produced from different processes into a single package. Their PowerVia technology also enhances energy efficiency.

By leveraging these technologies, the companies could work together to develop high-performance, low-power chip designs for artificial intelligence, data centers, and mobile application processors.

Additionally, Samsung operates factories in the U.S., South Korea, and China, whereas Intel has manufacturing facilities in the U.S., Ireland, and Israel. This geographic diversity could allow them to collaborate on orders or share facilities in response to the increasing export controls on advanced semiconductors by the U.S. and the EU.

Kim Heung-jun, Director of the Next-Generation Semiconductor Research Institute in South Korea, mentioned that the potential synergies from an Intel-Samsung foundry alliance could be substantial, but given TSMC’s overwhelming advantage, it’s unrealistic to expect an immediate major impact.

Since establishing its foundry business in 2021, Intel has entered agreements with companies like Cisco and AWS but has yet to attract significant customers. While Samsung has been drawing in clients since launching its foundry division in 2017, there remains a considerable gap compared to TSMC.

Data from TrendForce shows that in the second quarter, TSMC commanded a staggering 62.3% market share in the foundry sector, while Samsung merely held 11.5%. Particularly in advanced nodes like 3nm and 5nm, TSMC’s market share soared to 92%.

Analysts anticipate that if the Intel-Samsung foundry alliance materializes, there could be significant opportunities for collaboration in process technology exchange, shared production facilities, and joint R&D initiatives.