“Samsung Electronics Co. and Globalfoundries Inc. are teaming up in the made-to-order chip business, an alliance aimed at stealing orders from Taiwan Semiconductor Manufacturing Co.,” Ian King reports for Bloomberg.

“Globalfoundries will license Samsung’s most advanced new chipmaking technology, called 14-nanometer FinFET, giving customers access to production at plants in Texas, New York state and South Korea. Terms of the accord weren’t disclosed,” King reports. “The companies are seeking to pose a bigger challenge to Taiwan Semiconductor, which last year controlled about half of the $38.9 billion chip-foundry business.”

“Samsung and Globalfoundries are betting the advanced technology and scale they can offer together will help ensure they remain central in the market for building smartphone and tablet parts,” King reports. “Globalfoundries ranked second in the made-to-order chip market last year, and Samsung was fourth, together generating about $8.2 billion of foundry revenue, according to market researcher IC Insights Inc. Samsung’s main customers for chip-building work are Apple Inc. and itself — the company makes parts for its own phone and tablet divisions, McGregor said.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]