Intel negotiates outsourcing with TSMC and Samsung

Due to multiple delays in its own production, Intel has negotiated with TSMC and Samsung in just two weeks to outsource some chip production.

People familiar with the matter said that the components that Intel may purchase from Taiwan will not be available until 2023 at the earliest, and will be based on established manufacturing processes already used by other TSMC customers. The negotiations with Samsung, which has lagging behind TSMC in foundry capabilities, are in a more preliminary stage.

Previously, Intel CEO Bob Swan promised investors that when Intel released its earnings report on January 21, he would develop an outsourcing plan to get Intel’s production technology back on track. The world’s most famous chip maker has always led the industry in advanced manufacturing technology, which is crucial to maintaining the pace of modern semiconductor performance growth. But the company has experienced several years of delays, lagging behind competitors who designed their own chips and contracted with TSMC to manufacture chips.

TSMC is the largest manufacturer of semiconductors for other companies. The company said it will trial-produce 4-nanometer chips in the fourth quarter of 2021 and begin mass shipments next year. TSMC is expected to put into operation a new factory in Shanghai before the end of this year. If necessary, the factory can be converted to Intel’s production base. TSMC executives have previously stated that the new Shanghai branch will have a research center with 8,000 engineers.

Via: Bloomberg