Backed by Washington's push to revive domestic semiconductor manufacturing, Intel is making an aggressive push to reshape the global foundry market.
After securing a chip manufacturing partnership with Apple, the company has brought in former SK hynix CEO Lee Seok-hee in an effort to bolster its foundry business.
"And, finally, Apple has agreed to work with Intel to design and build its Chips in America," U.S. President Donald Trump wrote on Truth Social on Thursday. The announcement follows a report by The Wall Street Journal last month that Apple "reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices."
Apple sells more than 200 million iPhones annually, along with millions of iPads, Mac computers and laptops, with chips used in those devices currently manufactured entirely by Taiwan-based TSMC. Industry observers say pressure from the Trump administration to increase U.S.-based manufacturing is likely to push Apple toward Intel Foundry.
Intel is also stepping up its foundry technology efforts. The company announced Thursday that it had appointed former SK hynix and SK On CEO Lee Seok-hee as executive vice president of Intel Foundry.
Former SK hynix and SK On CEO Lee Seok-heeSK ON
Lee spent roughly a decade at Intel before leading SK hynix from 2018-22 and SK On from 2023 until this year. Industry analysts view the appointment as a signal that Intel intends to tackle longstanding challenges involving advanced-process yields and mass-production bottlenecks.
“Advanced packaging and system integration are becoming defining capabilities for next-generation computing systems,” said Intel CEO Lip-Bu Tan. “[Lee] brings deep expertise in leading complex, high-scale technology and manufacturing organizations and a strong track record of operational execution.”
The developments are expected to have mixed implications for Samsung Electronics and SK hynix.
For SK hynix, which is focused on memory chips, Intel's emergence as a stronger foundry player could provide an opportunity to diversify its foundry supply chain that has been heavily reliant on TSMC. Beginning with HBM4, the sixth generation of high-bandwidth memory (HBM), logic foundry processes are required for the base die, and SK hynix has been producing those components in cooperation with TSMC.
If Intel expands its position in the foundry market under Lee's leadership, SK Hynix could gain greater leverage by broadening its contract manufacturing partnerships.
Intel CEO Lip-Bu Tan, left, and Tesla CEO Elon Musk shake hands after Intel joined Tesla's Terafab AI chip complex project on April 7.INTEL
Samsung Electronics had hoped to boost its foundry business, but is now set to face a new rival.
Many had expected Samsung's foundry to benefit from a spillover effect as surging demand for AI semiconductors stretched TSMC's production capacity, possibly allowing Samsung to absorb excess orders. But concerns are growing that Intel, backed by strong support from the U.S. government, could capture business that might otherwise have gone to Samsung.
“President Trump emphasized Intel’s importance and specifically mentioned Nvidia and Apple as Intel Foundry customers,” analyst Park Je-min of SK Securities said in a report released Wednesday. “With TSMC facing constraints in advanced-process capacity, political pressure from the United States is increasing the likelihood that foundry customers will consider placing orders with Intel.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
