Intel diverts chip manufacturing to third parties due to 14nm shortage
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In a clear sign of a 14nm Intel production shortage, a press release was issued claiming that the company is increasing the use of third-party manufacturers. The company also notes that the shortage persists despite "double-digit" production increases, with no specific deadline given.
Intel continues its shortage problems despite increasing production of 14nm CPUs
Sources close to the matter have said that the increase in production from third-party manufacturers consists of products that are not processors, this would allow freeing up resources for Intel to focus solely on the manufacture of CPUs.
These contracts with third-party manufacturers deal with simpler, low-margin chips shipped in high volumes, such as chipsets and other products already manufactured outside of Intel's own foundries.
We have already seen indications that Intel has outsourced the production of some chipsets to Samsung, which the company has done in the past. Intel has already made other adjustments to free up 14nm capacity, such as downsizing some of its own chipset production to the 22nm process.
Intel currently uses third-party fabs for several of its products, taking advantage of TSNC's 16nm for Nervana NPP-T, and TSMC's 7nm for its Mobileye and Barefoot chips.
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The latest Intel blog post does not specify when the shortage will end, but it does point out that the company is busy allocating more resources to boost 14nm and 10nm production. This is not very comforting to original equipment manufacturers expecting chip shipments, but it also indicates that AMD's continued advancement in various market segments is apparently not hurting Intel too much in terms of volume, as demand exists, case Otherwise there would be no shortage and stock problems.
The company is immediately selling every chip it can make. Instead, the impact of AMD's competition would be affecting Intel's balance. We will keep you informed.
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