Samsung to produce STMicro's MCUs for use in iPhones

Samsung Electronics Co. has won a foundry order from Switzerland-based STMicroelectronics to produce microcontroller units (MCUs) for use in Apple Inc.'s next-generation iPhones, according to semiconductor industry sources on Monday.

It was the first time for STMicroelectronics to outsource the production of MCUs to be supplied to its key clients such as Apple Inc.

The MCUs, in a global supply shortage, will be manufactured in the 16-nanometer (nm) fabrication process, meaning the microcontrollers will be smaller and have a higher power density than conventional MCUs.

Samsung declined to confirm whether or not it received the order, for which details such as the order value were not immediately known.

MCUs are used in a wide array of systems and devices. It is kind of a system on a chip, designed to control small features of a larger component.

Among them, MCUs embedded in smartphones process data stored in a multitude of sensors, even when the phone is not being used by the user, and minimize power consumption.

The foundry order raises expectations that Samsung is expanding its footprint in the foundry market dominated by Taiwan Semiconductor Manufacturing Co. (TSMC), which controls 70% of the outsourcing production of MCUs. Both are the world's two largest foundry manufacturers.

Late last month, Samsung officially announced a plan to build a $17 billion chipmaking plant in Taylor, Texas, as part of an effort to overtake TSMC.

Write to Su-bin Lee at lsb@hankyung.com
Yeonhee Kim edited this article.