A new analysis suggests that American semiconductor giant Intel Corporation and South Korea’s Samsung Electronics are expanding their territories in opposite directions in the race for artificial intelligence (AI) chip dominance.
Intel is making inroads into the memory market through innovative packaging and interface technologies that bridge memory and computing. Meanwhile, Samsung is doubling down on its foundry services, offering turnkey solutions to address the ongoing memory shortage crisis.
On Tuesday, market research firm Counterpoint Research highlighted Intel’s strategy to capture value at the intersection of memory and computing through advanced packaging and architectural interfaces. In contrast, Samsung recently reported a surge in demand for turnkey solutions that combine high-bandwidth memory (HBM) with foundry services.
Intel’s approach involves standardizing and potentially monopolizing the packaging technologies that link memory chips made by Samsung or SK Hynix to central processing units (CPUs) and graphics processing units (GPUs). This strategy extends to interface standards used for inter-chip communication.
Counterpoint interprets Intel’s moves as a calculated attempt to gain a foothold in the memory market. The recent appointment of former SK Hynix Chief Executive Officer (CEO) Lee Seok-hee as Intel’s senior vice president of foundry operations underscores this strategy. Reporting directly to Intel CEO Lip-Bu Tan, Lee will oversee not only foundry operations but also spearhead advanced packaging and backend technology development.
Industry experts anticipate that Lee will drive Intel’s efforts to secure a strategic position at the nexus of memory and computing. This will likely involve leveraging foundry services, EMIB advanced packaging, chiplet interconnects, and Compute Express Link (CXL) technologies.
Counterpoint’s analysis indicates that Samsung is leaning heavily into its foundry services, underpinned by a turnkey strategy. The company has noted a clear trend of customers seeking bundled memory and foundry services, driven by the expanding artificial intelligence (AI) and data center markets that continue to strain memory supply. During its second-quarter earnings call, Samsung expressed confidence in achieving profitability in its foundry business in the near term.
While Counterpoint suggests that Intel’s foray into memory through packaging and interface innovations may not immediately threaten Samsung’s memory business, it’s clear that both tech giants are encroaching on each other’s traditional strongholds. As the lines between memory and foundry blur in response to surging AI semiconductor demand, industry watchers will be keenly observing future earnings reports to see which company – Intel or Samsung – can establish a stronger foothold in the other’s domain first.
