As Intel falters and Samsung struggles, it’s no longer an outrageous question whether high-end silicon manufacturing should fall to a single company.
Intel’s future as a chip manufacturer is in question – even an acquisition by Qualcomm wouldn’t change that. Over 15 percent of staff will be laid off, capex and operational costs reduced and an overseas fab construction project has been put on ice, all in an effort to have a chance to persist in the leading-edge arena. Survival likely hinges on the success of the upcoming 18A node. If Pat Gelsinger’s engineers can get the process to yield well and his sales guys and girls can persuade major clients to sign on, Intel will stand a fighting chance.
It’s not smooth sailing either for another leading-edge competitor, Samsung. The chaebol (vertically integrated conglomerate) has the ability to outspend everyone in the industry, yet it hasn’t made much headway in gaining back market share from the king of the hill, TSMC. Less-than-stellar yields haunt the Korean firm, most recently at its new plant in Taylor, Texas. Reports suggest an authoritarian corporate culture stifling initiative and flexibility.
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