
At the moment, TSMC manufactures the majority of the semiconductors. There aren’t many companies like TSMC, that have the experience and necessary equipment to do so. Samsung is probably one of a handful that can potentially compete. That’s why it’s not surprising to learn that Samsung might be trying to steal MediaTek away from TSMC.
Samsung is trying to lure MediaTek away from TSMC
According to a report from DigiTimes, it seems that Samsung wants MediaTek to use them instead of TSMC for its semiconductor needs. The report claims that Samsung Chairman, Lee Jae-yong, visited Taiwan on the 21st of May to pay a stealthy visit to MediaTek’s CEO, Cai Lixing.
MediaTek, for the most part, has largely been viewed as the “budget” version of Qualcomm. However, the company’s Dimensity 9XXX series has been gaining a lot of attention in recent years. Plus, with Qualcomm prices on the rise, it is possible that more companies could turn to MediaTek as a viable alternative. This is why Samsung is hoping to court them before that happens.
The report claims that in order to make the deal more lucrative, Samsung could offer MediaTek preferential access to its memory chips for future Dimensity chipsets. Given the ongoing memory crisis, this could be a huge win for MediaTek and one of the ways it could leverage its chips over Qualcomm’s.
Samsung’s attempt also comes at a good time. The relationship between MediaTek and TSMC wasn’t what it once was. In fact, MediaTek actually awarded the advanced packaging contract of Google’s 8th-gen TPU to Intel.
Samsung’s on a roll
That being said, Samsung’s confidence in luring MediaTek away from TSMC isn’t unwarranted. Recently, Samsung managed to secure a fabrication order for Tesla’s A16 chip. It is also in the process of getting AMD to come over to use its 2nm process. With some of these big names behind them, it could be enough to convince MediaTek to jump ship.
TSMC is still very much the dominant player, but it could slowly be losing its competitive edge. Just last week, there was a report that Apple is exploring taking some of its business over to Intel.
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