As delays and manufacturing inefficiencies affect its foundry division, Intel aims to enlist TSMC’s assistance in the future. According to Taiwan Commercial Times via Trendforce, the US based chip maker plans to use TSMC’s capabilities to make up for its weaknesses.
According to reports, Intel would reportedly outsource a sizable portion of its orders to TSMC between 2024 and 2025 because to the expanding trend of outsourcing. Due to yield rate delays and flaws, particularly with its 10nm process, Intel Foundry has been experiencing, the business now wants to contact TSMC for order fulfilment.
According to a research by the financial company Goldman Sachs, outsourcing might cost a total of $18.6 billion in 2024 and $19.4 billion in 2025. According to reports, TSMC might generate up to $9.7 billion in income from fabrication services over the next few years, with Intel actually contributing a sizable chunk of that total.
By working together, Intel hopes to improve its chip design business, which is far behind its rivals and largely responsible for IFS’s current position.
The fact that this would divert the chip maker from their objective of being “self-sufficient” is bad news in any way. As a result of worries about the wafer output and the matching CPU tile size, we recently heard that the company’s Meteor Lake output was also being reduced. Even though Chipzilla has adopted a “confident” position regarding its Intel 4 process, based on the reports surrounding it, it will undoubtedly fall short of expectations. Intel’s foundry business has been struggling for a long since the corporation can’t win over the market’s trust, which ultimately allows rivals to gain the upper hand.
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