Samsung, Globalfoundries ink deal to challenge TSMC

|About: Samsung Electronics Co., ... (SSNLF)|By:, SA News Editor

Globalfoundries has agreed to license Samsung's (SSNLF) most advanced chipmaking technology, 14-nanometer FinFET, in a co-operation deal that analyst Jim McGregor says poses "a huge competitive threat" to Taiwan Semiconductor Manufacturing Co. (TSM), which controls around half of the $38.9B chip-foundry sector.

The collaboration could also make it more difficult for Intel (INTC) to gain a strong position in the foundry business, McGregor says.

The tie-up "provides an alternative to those companies that are looking to use leading-edge production." That could affect chip designers such as Qualcomm (QCOM).