Intel is moving certain cpus to globalfoundries [rumor]

Intel has been using its factories to the limit since last year, and that is forcing it to use the facilities of third-party manufacturers to keep up with demand. We knew that Intel was using TSMC and Samsung to make some of their products, and now the same would be true of GlobalFoundries, another popular silicon maker.

Intel would be moving certain CPUs to GlobalFoundries to meet high demand

Having reached a record quarter, the company is already trying to increase manufacturing capacity by 25%, but even that might not be enough to survive the PC industry's expected growth spurt in 2020. Given that it is assumed that Intel GPUs will also come into the fight in terms of production this year, things are going to be very tight and the company needs to manage its production lines very carefully to have a chance to meet demand and not bleed more share of market versus AMD. This is where this particular rumor comes into play.

Since GlobalFoundries is stuck in the 14nm / 16nm process for now, this would make sense since Intel would be freeing up critical manufacturing space for its high-end processors to GloFo. Another reason this rumor makes sense is that the transition to GloFo is in line with his vision (as opposed to TSMC) considering the former is located within the United States.

There have also been rumors that Intel is considering leveraging TSMC for its next-generation graphics cards (certainly not DG1) that would free up a ton of space at the cost of depending on an outside foundry for production.

That said, if this turns out to be true, Intel should be able to add a few percentage points of capacity in addition to 25% this quarter and if the 10nm ramp is successful it would eventually come out of the murky waters in early 2021.

Remember this is a rumor, for now, so take it with caution. We will keep you informed.

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