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I know the focus of the article is Intel and TSMC but I kept wondering about Samsung. If it's following the same foundry model that TSMC is, why does it only ha

I know the focus of the article is Intel and TSMC but I kept wondering about Samsung. If it's following the same foundry model that TSMC is, why does it only have a small fraction of the market (compared to TSMC)? Shouldn't it be doing as well as TSMC?

Tenoke 5y ago
WithinReason's comment seems to explain that. The benefits of being bigger compound over time.
- evancox100 5y ago
  I don't think that explains it. Measured by wafer starts/mo, Samsung is the largest semiconductor manufacturer in the world, bigger than TSMC. https://anysilicon.com/five-semiconductor-companies-hold-53-of-global-wafer-capacity/ https://anysilicon.com/five-semiconductor-companies-hold-53-... Edit: it is maybe a little more complex than that, because much of that is memory, and memory and logic processes may not be able to share the same learnings and developments.
  - tooltalk 5y ago
    "... That represented 15.0% of the world’s total capacity and about two-thirds of it was used for the fabrication of DRAM and NAND flash memory devices. ..."
TheTon 5y ago
As others pointed out, they both do a lot of volume. But TSMC are ahead at the leading edge. Complete speculation, but I would guess this is mostly due to Apple. Apple wants the best process and they’re able to pay for it. Further, Apple is mistrustful of Samsung so they were happy to drop them and switch to TSMC. I think this highlights the difficulty Intel will face. Samsung’s foundry is independent from Samsung’s phone business, and I don’t think anyone has alleged otherwise. But even if Intel does manage to keep its two sides at arms length, will that be enough to attract business from competitors like Apple and AMD? I’d guess no.
- klelatti 5y ago
  Agree 100%. Three issues: - Do other firms trust Intel with their IP? Apple has a new feature for their next generation - Intel quickly becomes aware of this and this information leaks into Intel's product plans. - Is Intel a reliable foundry partner? TSMC have a 30+ year track record, Intel have none as a third party foundry. Will they change their strategy again? - Will other firms get a fair prioritisation of resources in the fabs? Or will Intel's own products be favoured?

Tenoke 5y ago

WithinReason's comment seems to explain that. The benefits of being bigger compound over time.

evancox100 5y ago
I don't think that explains it. Measured by wafer starts/mo, Samsung is the largest semiconductor manufacturer in the world, bigger than TSMC. https://anysilicon.com/five-semiconductor-companies-hold-53-of-global-wafer-capacity/ https://anysilicon.com/five-semiconductor-companies-hold-53-... Edit: it is maybe a little more complex than that, because much of that is memory, and memory and logic processes may not be able to share the same learnings and developments.
- tooltalk 5y ago
  "... That represented 15.0% of the world’s total capacity and about two-thirds of it was used for the fabrication of DRAM and NAND flash memory devices. ..."

TheTon 5y ago

As others pointed out, they both do a lot of volume. But TSMC are ahead at the leading edge. Complete speculation, but I would guess this is mostly due to Apple. Apple wants the best process and they’re able to pay for it. Further, Apple is mistrustful of Samsung so they were happy to drop them and switch to TSMC. I think this highlights the difficulty Intel will face. Samsung’s foundry is independent from Samsung’s phone business, and I don’t think anyone has alleged otherwise. But even if Intel does manage to keep its two sides at arms length, will that be enough to attract business from competitors like Apple and AMD? I’d guess no.

klelatti 5y ago
Agree 100%. Three issues: - Do other firms trust Intel with their IP? Apple has a new feature for their next generation - Intel quickly becomes aware of this and this information leaks into Intel's product plans. - Is Intel a reliable foundry partner? TSMC have a 30+ year track record, Intel have none as a third party foundry. Will they change their strategy again? - Will other firms get a fair prioritisation of resources in the fabs? Or will Intel's own products be favoured?