Tuesday, September 5th 2023
Intel Predicted to Rely on TSMC for Increased Outsourcing in 2024 & 2025
Intel's leadership has announced the hastened expansion of 20 A and 18 A-capable fabrication facilities in Arizona, in order to meet next year's anticipated manufacturing demand from Foundry Services clients. Team Blue's native efforts are possibly not enough in the eyes of an investment bank—Taiwan's Commercial Times has managed to take a look at industry analysis conducted by Goldman Sachs Securities. Intel is predicted to broaden its outsourcing to TSMC in 2024 and 2025—although a part of said report proposes the hypothetically bizarre scenario where Intel outsources all of its products at a cost of $18.6 billion in 2024, and $19.4 billion in 2025 (in terms of total addressable market). A more down-to-earth synopsis outlines TSMC winning Intel outsourcing contracts worth $5.6 billion in 2024, and $9.7 billion for 2025.
According to Trendforce's report this would approximately account: "for 6.4% and 9.4% of TSMC's overall revenue in the corresponding years." Industry analyst Andrew Lu was contacted for comment on the conjectural conditions: "(this) explains that Intel's wafer chip manufacturing division competes with TSMC, rather than its design division. The design division is striving for survival in the high-speed computing semiconductor sector, and it is currently hopeful for close collaboration with TSMC. Lu even predicts that Intel's wafer manufacturing and design divisions will inevitably be further separated into two companies several years down the line."
Sources:
Tom's Hardware, Trendforce, Tech Unwrapped (image source)
According to Trendforce's report this would approximately account: "for 6.4% and 9.4% of TSMC's overall revenue in the corresponding years." Industry analyst Andrew Lu was contacted for comment on the conjectural conditions: "(this) explains that Intel's wafer chip manufacturing division competes with TSMC, rather than its design division. The design division is striving for survival in the high-speed computing semiconductor sector, and it is currently hopeful for close collaboration with TSMC. Lu even predicts that Intel's wafer manufacturing and design divisions will inevitably be further separated into two companies several years down the line."
20 Comments on Intel Predicted to Rely on TSMC for Increased Outsourcing in 2024 & 2025
More demand *should* equal more competitive pricing. Wasn't this what everyone was complaining about during COVID?
Intel always said they were keeping a part of their business w TSMC...
New and improved! Now with more business!
Intel received rivers of money in government subsidies, after boasting that it would beat both AMD and TSMC by 2025, the expectation was that they would be able to manufacture at least their own chips.
Yes I know a lot of it also has to do with securing US' chip supply closer to home but let's not kid ourselves, a lot of that money is going back to shareholders & executives at various levels! Just check the amount of money they spent from record profits on share buybacks in the last 5-10 years :shadedshu:
www.intc.com/stock-info/dividends-and-buybacks
This is where Apple gets at least some amount of credit IMO, they have made Axx & now Mx chips just killer machines across a variety of workloads although they're still robbing you for 8GB of extra DRAM or 128GB of storage!
18A bringing back their node leadership still seems to be on the table, but they might have been tired to see people meme on them with 14nm+++++, intel 7+++, and the endless delay, and unplanned stop gap launch :D. The money is probably used for the "five nodes in four years" thing. If they fail at that too, they will become a bigger joke on tech forums
As a rule you should be wary of any claims made by large corporations, in the case of intel this carries double weight. Finally, as a consumer I see that intel's incompetence will bring more inflation to the hardware market.
Are you forgetting Micron, Qualcomm, Broadcom, etc? If you want to talk monopoly in today's markets then go hug Amazon.
Intel is recovering. AMD is struggling. Apple and Nvidia are moving. This stuff changes. Do you want 10nm AMD video cards? Me neither.
TSMC is a third party provider. They run large process builds on individual lines or in runs on a given line. It's secure and proprietary to the customer.
Y'all spend so much time picking bad guys..