Samsung Electronics is expected to produce central processing units (CPUs) for Intel.
Intel has recently decided to outsource some of its CPU production to other chipmakers as a shortage in CPU supply to PC makers continues. Intel is reportedly discussing CPU production with global foundry companies such as Samsung Electronics in Korea and TSMC in Taiwan.
Industry watchers say Samsung Electronics is highly likely to win an order from Intel because only leading foundry companies in the world can produce Intel CPUs. They include TSMC, Samsung Electronics and GlobalFoundries.
Samsung Electronics and Intel are competing for the top spot in the global semiconductor industry. If Samsung Electronics and Intel make a deal in this regard, it will be an exceptional case as Intel has not contracted out CPU production to Samsung Electronics.
Some analysts say that Intel will outsource more production volume to Samsung than TSMC. Samsung Electronics will be given a priority as TSMC maintains a partnership with AMD, the world's second-largest CPU producer and a big rival to Intel, and Huawei which is subject to U.S. sanctions, they noted. In addition, TSMC's plants are in full operation so they may not be able to accept additional orders.