Samsung Foundry could secure an important order for Intel PCH chips on older 8nm process node

Samsung Foundry is reportedly close to securing a deal to fab Intel 8nm PCH chips, which would be another important semiconductor contract win for the South Korean giant.

In a new report from Korean media outlet Hankyung picked up by analyst @Jukan on X, we're hearing that Samsung Foundry is "on the verge" of securing an order for Intel's 8nm chips (PCH or Platform Controller Hub). Full-scale production is expected to kick off next year, with the PCH being a semiconductor that supports the CPU by handling functions like information input/output and device controls inside of computers including PCs and servers.

Intel has reportedly migrated (scaled down) the PCH -- previously fabbed at Samsung's 14nm foundry lines in Austin, Texas -- to an 8nm process, deciding to trust Samsung with semiconductor production again. Samsung Foundry's 8nm production line located in Hwaseong, Gyeonggi Province, so PCH production would take place on South Korean soil once again.

This is a big deal, as Intel holds over 75% of the computer CPU market, so trusting semiconductor production to Samsung Foundry is recognition that Samsung's 8nm process has hit a particular level of maturity and reliability.

Samsung winning the semiconductor contract with Intel is also bigger than just fabbing a PCH chip, but after multiple contract wins for its 8nm process node recently... this year Samsung won the order to fab NVIDIA's custom Tegra T239 GPU that is used in Nintendo's new Switch 2 gaming handheld. NVIDIA reportedly asked Samsung not to just fab the GPU for the Switch 2, but also to fab additional low-end 8nm GPUs.

Samsung Foundry's 8nm production capacity sits at around 30,000 to 40,000 300mm (12-inch) wafers per month, which represents around 9% of its total semiconductor foundry capacity (which is around 350,000 wafers per month). If Samsung Foundry can deliver those results meeting customer expectations on its 8nm node, the company is more likely to continue to gain momentum winning additional orders for its newer process nodes.