Intel is poaching – or at least trying to poach – South Korean chip design firms that currently use Samsung's fabs, according to a report from Digitimes. It appears that Intel is motivated by its drive to become the world's second-largest chip manufacturer, a title that Samsung currently holds. Though Intel seems to be closer to the cutting-edge, Samsung has strong ties to its partners and customers, making it unclear if Intel can make a dent in the South Korean market.
Since 2022, Intel has made it clear that it wants its Foundry Services to become the second-biggest semiconductor manufacturer in the world. TSMC is in first place, and given how much business it does with the wider industry, it's understandable that Intel doesn't have ambitions to become #1 (at least for now). However, second place is more feasible for Intel, and to do that the company will need to beat Samsung, which has sat behind TSMC in revenue for many years.
The Digitimes report details that in order to overtake Samsung, Intel is going for the South Korean conglomerate's customer base: tech companies and even chip designers. Intel CEO Pat Gelsinger himself was apparently involved in pitching his company's process technology last year, particular for the upcoming 18A node. By contrast, Samsung's second-generation 3nm process is only hitting its stride later this year, behind both Intel and TSMC.
In the coming years, Intel plans to have its 14A process in 2026 and 10A node in development in 2028, which on paper will be the world's most advanced. By contrast, Samsung projects its 2nm to be finished in 2025 and 1.4nm in 2027, which (by name at least) are equivalent to 20A and 14A respectively. Of course, process names don't mean that much these days, and it's entirely possible that things won't be so bad for Samsung after all. However, it is clear that Intel is trying to go at a faster pace than its rivals, and this is likely key to getting South Korean companies to switch to Intel.
The report says that Intel's success in achieving clients like Microsoft for the 18A node has South Korea's industry worried. Because if other big tech companies follow, then it could be at the expense of Samsung.
But regardless of whether Samsung is behind technologically, it has other ways of keeping its customers. Samsung's design solution partners reportedly work closely with the company's clients, ensuring that they're happy with Samsung's foundry services. This advantage may have actually won over one of TSMC's former customers, AI startup Preferred Networks, which is apparently tapping Samsung's 2nm for its next AI processor. Clearly, Samsung isn't helpless and there's interest in its upcoming nodes. That will undoubtedly make it difficult for Intel to move further into Samsung's turf.
