Heads of Samsung and Intel Discuss Korea-U.S. Semiconductor Alliance

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Two Companies Could Cooperate in System Semiconductors

www.businesskorea.co.kr, May. 31, 2022 – 

Samsung Electronics vice chairman Lee Jae-yong met with Intel CEO Pat Gelsinger on May 30 to discuss ways to cooperate in the semiconductor sector. The two met at Samsung Seocho Building in Seoul and discussed over dinner such issues as strengthening the global semiconductor supply chain, production diversification and technological cooperation in the next-generation memory semiconductor, foundry and fabless sectors. The Intel CEO visited Korea after attending the Davos Forum in Switzerland.

The meeting between the heads of Samsung and Intel took place 10 days after U.S. President Joe Biden visited Samsung Electronics' Pyeongtaek semiconductor plant with Korean President Yoon Suk-yeol on May 20 to strengthen the economic and technological alliance between Korea and the United States.

Samsung Electronics and Intel are long-time competitors and, at the same time, partners in the semiconductor industry. Samsung produced Intel's CPUs and formed a consortium with Intel in 2019 to share technology and platforms for CXL-based memory semiconductors.

The two companies compete neck and neck in the system semiconductor and foundry fields. As for system semiconductors, Intel has overwhelming technological power compared to Samsung, but Samsung is closely trailing Intel with rapid growth in the image sensor and mobile SoC sectors. In the foundry business, Taiwan's TSMC is the global No. 1 player and Samsung ranks second, but Intel is threatening Samsung by declaring its re-entry into the foundry industry last year. For this reason, analysts say that Samsung is unlikely to cooperate with Intel in the foundry and system semiconductor sectors.

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