Samsung Electronics Co. is close to securing a contract to manufacture Intel Corp.’s 8-nanometer Platform Controller Hub chips, according to Korean media reports, adding another major customer to its foundry business as it fights to recover market share.
The PCH, which manages input/output functions and device controls in computers, would be produced at Samsung’s Hwaseong facility in South Korea, with full-scale production expected to begin next year. Intel previously had its 14nm PCH manufactured at Samsung’s Austin, Texas plant before the chip was redesigned for the smaller process node.
The potential order arrives as Samsung Foundry attempts to rebuild momentum following a difficult stretch. The unit posted a 94% year-over-year decline in operating profit during the second quarter, citing persistently low utilization rates at its mature process nodes.
Recent contract wins have provided some relief. Samsung secured orders to produce Nvidia-designed graphics processors for Nintendo’s upcoming Switch 2 console, along with automotive chips for Hyundai Motor Co. The company also landed a ₩22.8 trillion (US$16.5 billion) deal with Tesla Inc. for self-driving chips.
Still, the gap with Taiwan Semiconductor Manufacturing Co. remains substantial. TSMC controls approximately 71% of the global foundry market, while Samsung holds roughly 8%.
