SEOUL, KOREA – Xilinx, the world’s No.1 maker of FPGAs (field-programmable gate arrays), was confirmed to have ended its partnership with Samsung Electronics after 45 nanometer technology manufacturing. Above all, the split-up has caught attention because Samsung Electronics fiercely vied with the world’s largest semiconductor foundry, TSMC (Taiwan Semiconductor Manufacturing Company), to become Xilinx’s foundry partner in 28 nm technology manufacturing. The breakup seems to stem from Samsung Electronics’ focus on specific products such as mobile application processors (AP). Samsung Electronics mass produced Xilinx’s Spartan-6 family products at its 45nm process technology. Samsung Electronics has thus far forged its foundry partnerships with large corporate customers like Apple, Qualcomm and Broadcom. Samsung Electronics rapidly rose to the No.3 in sales by swiftly shutting down processes over 65nm in favor of profitable nano processes.  Its capability for mass production was enhanced by reducing semiconductor circuit widths and production processes were streamlined.

Some industry experts, however, said, “Samsung’s focus on profitability can prevent Samsung Electronics’ foundry business from being diversified. Though such moves can enlarge its foundry business in the short term, it can detract from the competiveness of its foundry business in the long run.”

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