Intel losing too much time at 14 nm +++ node will entrust its production to TSMC, which has the highest production technology in the market, according to the report. Moreover, the first chips are coming soon.
Semiconductor manufacturer Intel, according to reports, will have other semiconductor producers have it produced.
According to TrendForce’s latest report, Intel has already transferred 15-20% of its non-processor membrane production to TSMC, which previously purchased TSMC’s production technology license and implemented it in its own facilities.
5 nm Core i3s this year, 3 nm Core i9s coming next year
Moreover, the blue team that will leave the volume production of Core i3 processors at 5 nm node to TSMC in the second half of the current year, will produce mid-upper segment chips in TSMC’s 3 nm bands in the second half of next year.
Increasingly lagging Intel
Being criticized by the hardware world for the 14 nm node that it has been unable to let go for years, Intel has apparently taken the criticism into consideration. The impassable 10 nm node has begun to pull Intel better in the past generations against AMD.
As AMD left the production side to TSMC, it strengthened its hand with the advantage of offering the most advanced technology in the market. On top of all this, Intel had lost an important customer in the past months when Apple announced that it would use the M1 processor to be produced in TSMC on its MacBook and Mac Mini.
The benefits of shifting production to TSMC for Intel
Intel’s decision may intensify competition in the processor market in the coming period. Because, instead of investing in casting facilities suitable for the processors designed by Intel, CAPEX will be able to allocate more resources for research and development activities by using the capital allocated to use in the investment field more effectively.
In addition, it will save the cost of investing in new factories when capacity increase is required. Let’s underline that the decision will allow Intel to respond quickly to AMD’s manufacturing technology advantage.
Moreover, TSMC will provide Intel with advanced techniques such as chiplets, CoWoS packaging technique, InFO and SoIC, which is a circuit design that stands out with less space occupation, during the chip production process.