Wednesday, June 4, 2014
STMicroelectronics, Europe’s largest semiconductor maker, said it’s extending an outsourced manufacturing agreement with Samsung to include a type of production meant to enable more low-power chips.
Samsung will make chips for STMicro at its S1 plant in Kiheung, South Korea, using the FD-SOI process creating products that are faster, generate less heat and are easier to make, Jean-Marc Chery, chief operating officer of Geneva-based STMicroelectronics, said yesterday.
Samsung, the world’s second-largest chipmaker, is trying to bulk up its customer list as the company expands in the chip-foundry market, a business dominated by Taiwan Semiconductor Manufacturing Co. The world’s largest chipmaker, Intel, is also trying to get into the foundry business by opening its plants to other companies.
With the billions of dollars of investment required to keep up with each new technology cycle, the foundry business is gaining importance as more semiconductor companies decide not to produce their own designs. Instead the companies are outsourcing the manufacturing to the few chipmakers that can afford to keep developing advanced production techniques. Samsung and Intel trade places in the ranking of capital spenders in the industry.
By: DocMemory
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