Intel Reveals Aggressiveness, Advances in Foundry... Samsung Caught in the Middle

Intel CEO Pat Gelsinger is announcing the semiconductor process and packaging roadmap on the 26th (local time). (Photo by Intel Korea)

[Asia Economy Reporters Heungsun Kim and Hyunjin Jung] "We are accelerating our innovation roadmap to find a clear path to process performance leadership by 2025."

Pat Gelsinger, Intel's Chief Executive Officer (CEO), delivered this message on the 26th (local time) during an online technical briefing where Intel unveiled its next-generation semiconductor process and packaging roadmap. The semiconductor industry interpreted this as Intel, which officially resumed its foundry (semiconductor contract manufacturing) business in March, showing its claws in earnest. Intel's declaration to secure Qualcomm and Amazon as customers within just four months and to pioneer the world's first Angstrom (?, 0.1 nanometer) era is tantamount to a declaration of war aimed at shaking the dominance of existing foundry leaders such as Taiwan's TSMC and Samsung Electronics. Samsung, which had focused on chasing the industry leader TSMC, now finds itself under pressure due to Intel's successive aggressive moves.

Intel Takes the Lead by Introducing ‘Angstrom’ First

Intel's announcement appears to have been made not only to publicly reveal its advanced technology process development roadmap but also to actively attract foundry customers. At this event, Intel announced plans to introduce chips below the world's first Angstrom scale into foundry processes in 2024 and mass-produce semiconductors. The first Angstrom process, Intel 20A, will begin mass production in 2024, followed by an upgraded Intel 18A process in 2025.

Angstrom is 0.1 nm (nanometer; 1 nm = one-billionth of a meter), essentially the size of an atom. While TSMC and Samsung Electronics have mentioned 5 nm and 3 nm processes, they have never referred to the finer Angstrom scale. Intel 20A corresponds to a 2 nm process by current industry standards, but by presenting a finer scale than nanometers first in the mid-to-long term, Intel is signaling its intention to lead advanced process competition and surpass TSMC and Samsung in technological leadership. Samsung Electronics is targeting the introduction of a 3 nm advanced process next year.

On the 26th (local time), Intel announced its semiconductor process and packaging roadmap (Photo by Intel Korea).

To achieve this, Intel announced collaboration with Dutch semiconductor equipment maker ASML to be the first to adopt next-generation extreme ultraviolet (EUV) lithography equipment. Although Intel has not yet introduced EUV equipment, it plans to fully implement it in manufacturing processes starting in the second half of next year.

A source from the domestic semiconductor industry said, "We were surprised by Intel's confidence," but added, "Since Intel has faced difficulties with processes below 10 nm, it remains to be seen whether the announced roadmap will be realized as planned."

Intel to Rename Process Nodes

In this announcement, Intel also stated it would use its own naming conventions instead of the terms used by existing foundry companies. Generally, the foundry industry names advanced processes based on transistor gate width, such as 5 nm or 3 nm, but since these names do not always correspond to actual technological levels across companies, Intel feels disadvantaged. For example, the industry views foundry 7 nm and Intel 10 nm as similar, but because smaller numbers imply finer processes, Intel has been at a disadvantage numerically.

This move is interpreted as a strategic play to avoid giving the impression that Intel is lagging behind TSMC and Samsung in the foundry market, despite similar actual technological levels. Sanjay Natarajan, Intel's Vice President, said, "Competitors are using these numbers more aggressively in marketing," adding, "We are introducing new nomenclature for semiconductor processes to provide customers with a framework to accurately understand nanometer processes across the industry."

TSMC and Intel... Samsung Under Pressure

[Image source=Yonhap News]

Samsung Electronics, which is seeking to expand its market share in the foundry market based on advanced process competitiveness, now faces the challenge of defending against fierce technological challenges not only from TSMC but also from the latecomer Intel.

Although the prevailing view is that it will take Intel several years to catch up with TSMC and Samsung, Intel is aggressively investing in the foundry business and expanding its footprint mainly in the U.S. and Europe, key foundry market customers, which inevitably poses a threat to Samsung. Following support from the U.S. Biden administration, Intel is currently discussing subsidies with the European Union (EU) for building semiconductor factories in Europe. Additionally, foreign media reports have surfaced about Intel's plans to acquire GlobalFoundries, the fourth-largest foundry company. If this materializes, Intel's market share in the foundry sector could increase more rapidly than expected.

Samsung Electronics also announced its ‘System Semiconductor Vision 2030’ and plans to invest over 30 trillion won in semiconductors this year. However, amid confusion including rumors of a foundry spin-off and the absence of its leader, investment related to new and expanded semiconductor plants in the U.S. has been slow. Samsung Vice Chairman Jaeyong Lee, currently imprisoned, met the parole eligibility requirement of over 60% of his sentence as of the 26th, but industry voices suggest that a pardon, rather than parole, is necessary for him to actively engage in management without restrictions.

A semiconductor industry insider said, "With the U.S. signaling its intention to reorganize the semiconductor supply chain around its own country, Intel seems to be leveraging this support to continue sending aggressive messages," emphasizing, "Samsung Electronics needs bold investment and swift execution to avoid falling behind in this movement."

This content was produced with the assistance of AI translation services.