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Intel might turn to TSMC or Samsung to ease its factory burden
Intel has struggled to meet chip demand for years. To supply the market with 14nm solutions and prepare for 10nm, the company might tap TSMC or Samsung.
Even those completely uninterested in technology likely know Intel has struggled for years to supply enough 14nm solutions. Nearly all tech sites, gaming portals, and even general interest outlets have covered the issue.
As the saying goes, where there's smoke, there's fire. This issue has been particularly contentious, as both enthusiasts and regular users have struggled to buy some of Intel's processors at their official prices. While the situation has recently improved, with most chips now available at reasonable costs, Intel then faced the summer launch of AMD's Ryzen 3000 processors. The ongoing shortage of 9th-gen Core CPUs couldn't have come at a worse time. AMD's rival processors were highly competitive and relatively inexpensive, while Intel's 10nm 10th-gen Core chips weren't ready yet.
⤢ ВІДКРИТИWhat's more, Intel currently needs to supply the market with 14nm solutions while also preparing its new 10nm chips for an early 2020 release to regain its somewhat diminished market position. To achieve this, the company might use third-party fabs like TSMC or Samsung to produce its mature 14nm parts, freeing up its own manufacturing capacity to focus on refining 10nm production.
Intel's GM of Sales, Michelle Johnston Holthaus, also hinted at using third-party manufacturing:
In response to continued high demand, we've invested record levels of capital expenditures, increasing our 14nm wafer output this year while also ramping up 10nm production. Beyond expanding Intel's own manufacturing capabilities, we're broadening our use of third-party fabs to allow Intel's differentiated manufacturing to produce more products for Intel processors.
While there's some doubt about Intel outsourcing its core CPU production, as the company aims to control its own core manufacturing, simpler chips like chipsets could certainly be produced externally.
It's highly likely that the launch of the upcoming 10th-gen Intel Core processors will clarify just how well the chip giant can meet market demand. If Intel can't manage this quickly after the 10nm CPU release, there's a strong possibility that even the company's core processors could be manufactured by third parties in the future.
