Leading edge options disappearing
By the end of 2011, there may be only three foundries offering leading edge production, according to market researcher IHS iSuppli – TSMC, Globalfoundries and Samsung.
Principal analyst Len Jelinek believes TSMC will continue to lead the sector, but asks how much business the foundry will lose to Globalfoundries and Samsung – and also to Intel, should the company decide to make its leading edge facilities available to other companies designing devices around the Atom processor. "This would represent a dramatic change in philosophy at Intel," Jelinek noted. "It potentially could lead to significant revenue growth, as well as a more favourable asset utilisation."
With Samsung looking to surpass Intel as the leading semiconductor company, Jelinek says the company 'must become more aggressive in … the foundry business'.
Jelinek also points out that, by the end of 2011, no Japanese supplier will be manufacturing at 32nm or smaller. He describes this as 'significant'. "The Japanese semiconductor industy could suffer greatly if it chooses to remain on the sidelines," he says.
