Samsung May Make Intel PCH Chips Using 8nm Process

Samsung is not only securing deals for its cutting-edge 2nm process, but also for mature processes like 8nm. The company is reportedly nearing a contract to make PCH chips for Intel using its 8nm technology. This could greatly support the Korean foundry’s recovery journey in the global semiconductor market.

Samsung’s 8nm process emerges as a key driver of foundry growth

According to Hankyung, Samsung’s foundry division is gearing up to begin mass production for Intel’s Platform Controller Hub (PCH) chips next year. For the uninitiated, the PCH is a chip that works with the central processing unit (CPU) in PCs and servers. It handles a bunch of tasks such as data input and output and device control.

Previously, Samsung manufactured these PCH chips using its 14nm process at its factory in Austin, Texas. Intel has now decided to refine the PCH using Samsung’s 8nm process. However, this time, the Korean foundry may make the chips at its 8nm manufacturing line in Hwaseong, Gyeonggi Province. This shows Intel’s increasing confidence in Samsung’s mature process technology.

Samsung’s 8nm process has recently gained traction from several major clients. The company is already producing a custom Nvidia design chip for Nintendo’s Switch 2 gaming console. There’s a chatter that Nvidia may place more orders to make low-cost 8nm GPUs. In addition, a few weeks ago, Samsung signed a deal with Hyundai Motor Company to make 8nm automotive chips.

The company’s current 8nm production capacity is around 30,000 to 40,000 300mm wafers per month. This accounts for roughly 9% of its total foundry capacity. Meanwhile, industry experts say strong demand for Samsung’s 8nm process could also benefit related industries. Orders for photomasks (essential materials in the photolithography process) are likely to increase. “Samsung’s booming 8nm foundry business is also positively impacting the domestic materials, components, and equipment ecosystem,” said a semiconductor industry insider.