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Intel considers asking Samsung and TSMC to help processors

Intel is considering outsourcing the production of some of its main processors to competitors TSMC and Samsung Electronics. This possibility results from the growing pressure from the main investors, who want a quick solution to the problems that the company is experiencing at the moment.

According to Bloomberg, the Californian giant is in negotiations with both rival companies to solve its own manufacturing problems. If materialized, product outsourcing will start in 2023.

Intel fails to advance to 7nm

Processor Wafer

It is also revealed that so far no final decisions have yet been made as Intel is hopeful of achieving a last-minute improvement to its 7nm manufacturing process.

We recall that during the past year the company faced serious problems that led to a delay of at least six months in the products that use this lithography.

These rumors come after CEO Rob Swan said last year that he would decide in January 2021 whether his company would invest in a significant improvement in its manufacturing capacity or choose to order processors from rivals.

A decision is expected in the coming days, which may even involve a hybrid approach to the situation.

TSMC is more chance than Samsung

Accordingly, negotiations with TSMC are more advanced and well underway than talks with Samsung. TSMC already manufactures some of Intel’s products, namely chips resulting from the acquisition of Altera and two graphics processors for high performance computing and gaming.

Should Intel even decide to move to a higher volume of orders from TSMC for high-performance products, it is possible that it will guarantee privileged access to 4nm lithography. According to industry rumors, TSMC will have this manufacturing process fine-tuned by 2022.

Intel is going through an extremely delicate phase, with news of the possible departure of its CEO echoing in recent months.

Pressure from investors is also increasing, with the investment group Third Point demanding concrete measures to combat AMD’s dominance and Apple’s growth in this sector.

One of the measures suggested by this investor is precisely an alternative business strategy that involves the transfer of manufacturing to other companies.

4gnews editors recommend:

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