Intel delays TSMC’s 3nm orders, Postponed to 2024Q4 for Arrow Lake

Starting with this year’s Meteor Lake, Intel will adopt a modular design. In addition to using its own new Intel 4 process, it will also use TSMC’s process to manufacture other modules, including GPUs. However, as demand in the PC market declined, it was reported last year that Intel CEO Pat Gelsinger had met with TSMC’s top executives to discuss revising the 3nm outsourcing production plan.

According to DigiTimes, with the recent implementation of the cost reduction plan, coupled with the continued weakness in the PC market and AMD’s aggressive offensive, Intel’s product roadmap is also frequently revised, and the time to market for new products will inevitably be delayed. As a pivotal giant in the industry, Intel’s every move has a great impact on the supply chain. According to sources, Intel has notified TSMC that it will delay 3nm orders until the fourth quarter of 2024 for the GPU modules required by Arrow Lake.

It has been previously reported that Meteor Lake will not have modules manufactured by TSMC’s N3 process but will be replaced by the N5 process, and the number of EUs will be reduced from 192 originally planned to 128. The N3 process will not be introduced until Intel Arrow Lake, which is the 15th generation Core. Judging from the current situation, Intel may indeed have changed its original plan.

When Intel announced its financial report for the third quarter of 2022 last year, it announced a plan for cost reduction and efficiency improvement, which can reduce costs by up to $10 billion by 2025. The past period has seen Intel cancel its IDC21 project worth about $200 million in Israel, and shelve plans for a new research and development center worth about $700 million in Hillsboro, Oregon. At the same time, Intel also hopes to improve efficiency and profits by laying off employees and canceling some products.

Intel’s financial report for the fourth quarter of 2022 showed total revenue of $14 billion, a year-on-year decrease of 32%, which was its lowest quarterly revenue since 2016. At the same time, the net loss was $664 million, a year-on-year decrease of 114%, which is almost the largest single-quarter loss in Intel’s history. Intel expects to continue to lose money in the first quarter of 2023, which means that there will be two consecutive quarters of losses for the first time in 30 years.