In the rapidly evolving semiconductor market, Samsung Electronics is under immense pressure to secure a foothold against formidable competitors TSMC and Intel. As reported by South Korea’s Chosun Ilbo, the urgency for Samsung to capture significant orders has reached a critical juncture, with some industry insiders describing the situation as a “life-and-death” struggle for the tech giant.
The surge in demand for artificial intelligence (AI) accelerators has driven major American technology firms, including Pfizer, to consider shifting part of their semiconductor packaging production to Intel. This move is driven by concerns that TSMC, which currently dominates the market and handles the majority of Pfizer’s semiconductor needs, may not be able to keep up with the expanding demand for high-volume orders.
Despite TSMC’s substantial investments in new equipment, its production capacity remains constrained. The prevailing sentiment is that TSMC’s advanced micro-processing and high-specification packaging services—such as its 3nm technology—will not meet the market demands until at least the next year. The backlog of orders from major clients like Pfizer and Apple is expected to delay new foundry engagements until 2026.
In response to these constraints, major U.S. tech companies are increasingly turning to Intel’s foundries as a viable alternative. Intel’s packaging technology, particularly its Foveros technology, is comparable to TSMC’s CoWoS-S, making it an attractive option for companies seeking to diversify their supply chains. This shift is not limited to Pfizer but includes other technology leaders such as Microsoft, Amazon, and Cisco, all of whom are exploring options to reduce their reliance on TSMC.
Samsung’s competitive position in the cutting-edge semiconductor sector is being tested as it contends with TSMC and Intel. Industry analysts suggest that Intel’s potential to close the gap and capture a significant share of the market is increasing, intensifying Samsung’s need to act decisively.
Kim Hak-seong, Director of the Hanyang Advanced Semiconductor Packaging Research Center, emphasizes the critical role of packaging technology in the AI semiconductor era. He notes that the differences between Samsung and Intel’s technologies are minimal, and that securing mass production capabilities is essential for stabilizing manufacturing processes and attracting key clients. To stay competitive, Samsung must intensify its efforts to secure critical orders and strengthen its market position.
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