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Top two semiconductor companies to provide fab sub-contract services


Friday, June 24, 2011
Intel has discussed contract manufacturing deals with IC designers such as MediaTek and Qualcomm, the paper said, citing equipment makers.

Samsung, meanwhile, is seeking orders for making semiconductors based on the ARM architecture, the paper said. It has already garnered orders from Qualcomm and Texas Instruments and is also looking for business opportunities with Broadcom, Marvell and Freescale Semiconductor.

Rumors of Intel and Samsung entering contract manufacturing have circulated in the market for quite some time. Yet the market is surprised to see them doing this now, in the midst of a global market lull.

The move is expected to impact the business of the world's two largest contract manufacturers, namely Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp.

According to the paper, Intel plans to use its 45-nanometer high-K metal gate capacity to make 45-nm base band chips for cellular phones. Samsung, meanwhile, is planning to enter the business to increase revenue, in the midst of declining sales from DRAM and NAND manufacturing, the paper said.

TSMC and UMC yesterday closed at NT$75.9 and NT$14.3, up 1.34 percent and 0.7 percent, respectively.

By: DocMemory
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