Intel and tsmc already negotiate the manufacture of processors and chipsets
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As its processor supply continues to be insufficient, Intel has begun planning to outsource production to TSMC for its entry-level processors, and some of its chipset assemblies, while maintaining Xeon CPU production at its own facilities. and Core.
TSMC to manufacture low-end chipsets and processors from Intel
Among the foundries currently available, Taiwan Semiconductor Manufacturing Company (TSMC) is the only one capable of handling such urgent orders by Intel, as TSMC currently has the most advanced silicon chip manufacturing technology.
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Sources stated that Intel's CPU shortage worsened in the second half of 2018, and the problem has gradually expanded from the traditional PC market to the industrial PC sector. To alleviate the shortage, in early October, Intel announced that it will invest an additional $ 1 billion in 2018, expanding its manufacturing sites to 14nm. The budget is expected to be primarily spent on the production of its Xeon and Core processors for premium PCs and servers with higher margins.
For demand for entry-level PCs and Internet of Things (IoT) devices, Intel plans to outsource its entry-level Atom processors and 14nm chipsets to TSMC and expects the shortage to be resolved by the first quarter of 2019. Sources noted that Intel and TSMC have been in talks since mid-2018. Intel has previously worked with TSMC, including manufacturing SoC Atom in 2009 and production of Intel's SoFIA SoC in 2013. TSMC is currently the manufacturer of Intel's FPGA series products.
This will allow Intel to offload workload from its factories, in order to produce more high-performance processors with its own 14nm technology.
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