As competition heats up among industry leaders, including Taiwan Semiconductor Manufacturing Co., amid global supply chain woes, Samsung Electronics vice chairman Lee Jae-yong met with Intel CEO Patrick Gelsinger on Tuesday to discuss how the two companies can collaborate in a wide range of semiconductor businesses.
What did they talk about?
Samsung said in a statement, "Samsung Electronics Vice Chairman Lee Jae-yong met Intel CEO Patrick Gelsinger." This was during the latter's visit to South Korea on Monday. "They discussed how to cooperate between the two companies."
The executives "exchanged opinions on next-generation memory chips, fabless system chips, foundry chips as well as those for PCs and mobile devices in a series of meetings," the statement added.
The Register noted that it's unclear whether the talks were about a specific topic or simply the heads of the world's two largest chipmakers getting together for a chat while Gelsinger was in town.
The Samsung-Intel talks took place barely 10 days after the U.S. During a three-day tour to South Korea, President Joe Biden made his first stop at a Samsung semiconductor plant in Pyeongtaek.
Biden highlighted the factory as an example of U.S.-South Korean technology cooperation as the U.S. works to develop supply chains across "value-sharing" countries.
Samsung and Intel Are Key Players in the Semiconductor Industry
Both companies are attempting to grow their influence in the foundry market, which is dominated by TSMC and involves the fabrication of customized semiconductors for companies.
Intel is a leader in the design of central processing units (CPUs), whereas Samsung is a leader in memory chip manufacturing.
Samsung Electronics is part of the Samsung Group, a massive conglomerate that announced last week that it will invest $363 billion in the semiconductor, biotech, and IT sectors over the next five years to boost growth.
Meanwhile, The Register mentioned that Intel has also pledged to re-enter the foundry market and become a chipmaker for hire while also producing its own products under Gelsinger's leadership. Samsung may require a part of that capacity while its new facilities are being built in Ohio.
What Do Analysts Say About Intel-Samsung Talks?
Intel's chief executive's visit to Seoul, according to analysts, is likely aimed at establishing more solid supply chains in the semiconductor industry.
Lee Jae-yoon, an analyst at Yuanta Securities, said that "supply chains are the biggest issue." He added: "Materials, parts, and equipment suppliers in South Korea have grown through Samsung Electronics over the last decade. They can be an option to exclude China [in supply chains]."
The coronavirus pandemic revealed the vulnerability of global technology supply chains and their reliance on Asian countries, particularly China, for component production. In the U.S. and other advanced economies, lockdowns and the tendency of working from home prompted a boom in demand for electronic gadgets, which lockdown-affected companies struggled to meet.
It's also possible that the two talked about supply chain concerns. All chipmakers are dealing with supply chain issues, some of which are linked to Russia's illegal invasion of Ukraine. Intel and Samsung's combined power may be able to secure supplies in ways that others cannot.
