Samsung Electronics Co. announced on Thursday that it has successfully mass produced the world’s first 10-nanometer (nm) server processor “Centriq 2400” designed by Qualcomm Inc. with its cutting-edge 10nm process technology.

The new server processor applying Samsung Electronics’ 10 nm process technology boasts higher performance compared to rivals’ products and Qualcomm’s system on chip design would bring a big change in the global data-center CPU market, said Jung Eun-seung, head of foundry business in Samsung Electronics.

Qualcomm also claimed on Wednesday (local time) at a separate event in San Jose, California that its new Centriq 2400 processor, manufactured by Samsung Electronics, offers better results than its rivals’ based on energy efficiency and cost.

Samsung Electronics and Qualcomm have been in long-term strategic partnership with the Korean top chip maker manufacturing chips designed by the U.S. leading chip maker for phones. In October 2016, Samsung Electronics successfully mass produced Qualcomm’s “Snapdragon 835” processor for smartphones by using its first-generation 10 nm low power early (LPE) process technology.

But this is the first time for Samsung Electronics, which recently vowed to catch up No.2 in the global foundry market, to fabricate server processors in its foundry lines where it has mainly produced mobile application processors, image sensors and communications chips.

The world’s biggest memory chip maker launched a stand-alone pure-play foundry earlier this year with a goal to make it the world’s second largest foundry. Since then it has been aggressively reaching out corporate clients to manufacture and package their chips. It successfully developed the second-generation 10 nm foundry process technology in April 2017, which would help the company move ahead its rivals in the foundry business.

Currently Taiwan Semiconductor Manufacturing Co. (TSMC) dominates the foundry market, followed by U.S.-based GlobalFoundries (GF) and Taiwan-based United Microelectronics (UMC). Samsung Electronics at fourth.

Shares of Samsung Electronics Thursday ended 0.74 percent down at 2,817,000 won from the previous session.

By Hwang Hyung-gyu and Lee Ha-yeon

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