Intel turns to the 14nm manufacturing process for tsmc
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Everything seems to indicate that Intel is reaching the limit of its manufacturing capacity with the process at 14nm, which prevents the company from manufacturing enough products to satisfy the great demand that exists. This situation has led the company to collaborate with TSMC to manufacture several of its products.
Intel turns to TSMC for limited manufacturing capacity at 14nm
This situation is good initially, since Intel sells everything it manufactures, although, on the other hand, the company knows that a pent-up demand from equipment manufacturers and system builders will inevitably force customers to turn to AMD products., its great rival in the processor market.
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This issue cannot be solved by creating new factories, as such a process takes a long time to implement and will ultimately leave Intel with too much 14nm capacity when 10nm processors finally hit the market. This has forced Intel to find another way to increase production volumes to 14nm. DigiTimes has reported that Intel plans to outsource some of its 14nm chip production to TSMC, freeing up some of the company's internal 14nm production capacity for the creation of high-value silicon.
Intel is likely to commission TSMC to produce its 300 series chipset assemblies, as these products will not be affected by the node change, at least compared to Core processors. Moving Intel CPU designs to TSMC would be a challenging task due to its design complexity. In the worst case, Intel chipsets manufactured by TSMC will consume a little extra power.
Outsourcing chipset manufacturing to TSMC will help alleviate Intel's 14nm production problems, allowing them to devote more resources to CPU production, which in turn will allow them to fulfill more orders. This will help Intel keep its customers out of the competition, although it is currently unknown whether this move will fully solve Intel's manufacturing problems.
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