Friday, August 16th 2024
TSMC Reportedly to Manufacture SoftBank's AI Chips, Replacing Intel
SoftBank has reportedly decided against using Intel's foundry for its ambitious AI venture, Project Izanagi, and is opting for TSMC instead. The conglomerate aims to challenge NVIDIA in the AI accelerator market by developing its own AI processors. This decision marks another setback for Intel, which has faced several challenges recently. In February 2024, reports emerged that SoftBank's CEO, Masayoshi Son, planned to invest up to $100 billion to create a company similar to NVIDIA, focused on selling AI accelerators. Although SoftBank initially worked with Intel, it recently switched to TSMC, citing concerns about Intel's ability to meet demands for "volume and speed."
The decision, reported by the Financial Times, raises questions about Intel's future involvement and how SoftBank's ownership of Arm Holdings will factor into the project. While TSMC is now SoftBank's choice, the foundry is already operating at full capacity, making it uncertain how it will accommodate this new venture. Neither SoftBank, Intel nor TSMC has commented on the situation, but given the complexities involved, it will likely take time for this plan to materialize. SoftBank will need to replicate NVIDIA's entire ecosystem, from chip design to data centers and a software stack rivaling CUDA, a bold and ambitious goal.In July, SoftBank expanded its semiconductor portfolio by acquiring Graphcore, a British AI chip designer. While the acquisition amount remains undisclosed, this move is consistent with SoftBank's significant presence in the chip industry. The company already holds a majority stake in Arm, another British chip designer, which it purchased for $32 billion in 2016. Despite Arm's return to the stock market last year, SoftBank maintained its controlling interest.
In a separate development, Intel divested its position in Arm. The American tech giant sold its 1.18 million shares, generating approximately $146.7 million from the transaction.
Source:
Data Centre Dynamics
The decision, reported by the Financial Times, raises questions about Intel's future involvement and how SoftBank's ownership of Arm Holdings will factor into the project. While TSMC is now SoftBank's choice, the foundry is already operating at full capacity, making it uncertain how it will accommodate this new venture. Neither SoftBank, Intel nor TSMC has commented on the situation, but given the complexities involved, it will likely take time for this plan to materialize. SoftBank will need to replicate NVIDIA's entire ecosystem, from chip design to data centers and a software stack rivaling CUDA, a bold and ambitious goal.In July, SoftBank expanded its semiconductor portfolio by acquiring Graphcore, a British AI chip designer. While the acquisition amount remains undisclosed, this move is consistent with SoftBank's significant presence in the chip industry. The company already holds a majority stake in Arm, another British chip designer, which it purchased for $32 billion in 2016. Despite Arm's return to the stock market last year, SoftBank maintained its controlling interest.
In a separate development, Intel divested its position in Arm. The American tech giant sold its 1.18 million shares, generating approximately $146.7 million from the transaction.
37 Comments on TSMC Reportedly to Manufacture SoftBank's AI Chips, Replacing Intel
It is a good solution to solve some processing problems, for example, matrix multiplication of very-very big dense matrices. On my Dell mobile workstation ( 32 GB of RAM ) I can Not multiply matrices greater than 64Kx64K due to memory limitations. Application of Memory Mapped files doesn't help since performance of processing drops significantly.
they have been wasting those and some Japanese pensioner fund’s billions on stupid projects ever since and are basically broke.
they are a to big to fail construction from a nation that is on the verge of financial collapse it self
Large corporations have a running schedule when they upgrade so they don't overload their it departments and they have the option of paying for extended support so there won't be a sudden influx of money from those.
home users still have decent computers they had to buy in 2020 at a premium and those all run windows 11.
There are a bunch of people still happy working on their 12 year old sandy bridge machines, for most people computers have been fine.
There won't be a miraculous upgrade cycle next year that is going to 'save the industry', best case it's going to be business as usual.
1. Meteor Lake yield issues that they confessed
2. Raptor Lake oxidation issue that they confessed and wilfully continued mass production.
3. Lunar Lake being built completely on TSMC for the first time in Intel’s history. Intel can claim what they want but the positioning is not good.
4. Some rumors of them further outsourcing to TSMC for future CPUs.
Now with Soft Bank also bailing out on Intel, it’s going to be problem. They can still sell their fab service, but expect low margins.
It also doesn't help that there would be a juggle struggle between low power high performance compute and current to medium term media features for managing this and that when there's already some bizarre cartel behavior going on in the embedded space. A bunch of bottom grade Ampere chips could just bust in and snatch up ALL the customers, I'm sure.
Keep calm and game on ;) .