Two tech giants, Samsung and Intel, are preparing for a groundbreaking partnership in the semiconductor market. Samsung Chairman Lee Jae-Yong’s recent visit to the United States sparked this unexpected development. According to reports in the South Korean press, Samsung is making a major investment in Intel’s struggling chip packaging business.
Samsung May Officially Invest in Intel
This investment is seen as an attempt to establish a new balance of power against Taiwan’s TSMC, Intel’s biggest rival. As you may recall, the US government’s acquisition of a 10 percent stake in Intel last week boosted the company’s stock value. Now, Samsung’s potential investment is generating significant buzz in the tech world.
Intel and TSMC are the only global players in advanced packaging manufacturing. This technology enables chips to be combined with memory and other components. Advanced packaging solutions are crucial for high-energy components such as AI accelerators and GPUs.
Samsung’s main focus is Intel’s expertise in hybrid bonding and glass-based substrate technology, which it has been developing for a long time. While Intel generates revenue by licensing its expertise in this area, costs are slowing down these investments. This is where Samsung’s investment becomes crucial. The two companies’ collaboration will enable the continuation of glass substrate research.
According to reports, two scenarios are on the table for this major collaboration: either a joint venture will be established, or Samsung will directly invest capital in Intel. This strategic move allows Intel to maintain its leadership in chip packaging and streamline its weakened foundry business, which should be its primary focus. For Samsung, the partnership offers the opportunity to strengthen its advanced manufacturing expertise.
Market leader TSMC accounts for a large portion of global chip production. While Samsung offers cutting-edge manufacturing technologies to external customers, it has been lagging behind TSMC due to low yields and challenges with large-scale delivery.
Therefore, the Intel-Samsung partnership represents a strategic gain for both companies and has the potential to rebalance the semiconductor market.
