TSMC Chosen Over Intel as Production Partner Due to Unreliable and Delayed Production Lines – Troubling Situation Awaits
September 3, 2023

TSMC Chosen Over Intel as Production Partner Due to Unreliable and Delayed Production Lines – Troubling Situation Awaits

The Taiwan Commercial Times (Trendforce) reports that Intel plans to seek help and take advantage of TSMC's silicon manufacturing facility to solve its backlog. With the growing trend of shifting production and the process of making its own processors, Intel will reportedly shift a large part of its orders under the auspices of the factory of the Taiwanese company TSMC in the time period of 2024-2025.

The Intel Foundry group, which under the Santa Clara company's new business strategy has spun off service chip manufacturing, is a victim of process delays and inefficiencies in the success rate of yielding correct chips, particularly with its 10nm process, which is why the company now plans to contact TSMC to meet obligations regarding the delivery of orders to their customers. What would our people say he fell on the low branches.

Intel Foundry facilities are far from the epithet of an ideal manufacturer

The analysis that comes from the banking firm Goldman Sachs, otherwise among the investors of a very influential institution, states that the value of displaced production could reach a total amount of as much as 38 billion US dollars during the next two years. It is further stated that TSMC's revenue from providing manufacturing services could reach $9.7 billion in the coming years, with the lion's share generated by Intel, which by the nature of things should be its biggest competitor.

Through this collaboration, Intel aims to improve its chip design division, which currently lags significantly behind its competitors and is a major contributing factor to the current poor state of Intel's silicon manufacturing division.

In addition to spectacular PPT presentations and thunderous announcements of large investments in new mega factories, Intel is making itself look weaker and more powerless on a concrete level. Its processors are actually chewed up technology with small steps towards some serious progress, and serviceable production is just wishful thinking. From once the most powerful company for the production of central processors, Intel has become a company whose potential is increasingly doubted by investors, but also by end users.

This is by no means good news for Intel, as it is obvious that the company is in deep trouble. It is miles away from its proclaimed strategy of a “self-sufficient” company as they would like to become. Recently, it was written about the fact that the production of the Meteor Lake processor ran into difficulties and that, as a result, its volume was significantly reduced. All this due to concerns about the quality of the silicon cake and the appropriate size of the CPU cores that are cut from the silicon disks. Although Chipzilla has taken a rather “confident” stance with its Intel 4 processor, it certainly won't live up to expectations, at least judging by reports coming in lately.

Intel's division for the production of silicon discs and materials from which processors are made, has been having serious problems in its business for some time, since it is not able to gain the trust of the market, which would eventually put it in a position to take an advantage over the competition. It will be interesting to see how the situation will develop in the near future, especially after the release of the Meteor Lake generation of processors, which will clarify the uncertainties that are happening regarding the successful conquest of the “Intel 4” production process.

What is your attitude and opinion regarding everything that happened and is happening with the company Intel? Does the once famous name in the field of development and production of central processors have the power to return to the paths of old glory or is it irreversibly on the path of stagnation and departure from the scene?