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Intel could outsource low-end chip manufacturing to TSMC

INTEL COULD OUTSOURCE the manufacturing of some of its chips to silicon wrangler TSMC, according to industry sources spouting to DigiTimes.

While Intel has been ploughing money into boosting its manufacturing capabilities in the US, Ireland and Israel to cope with chip demands, it looks like it simply can’t keep pace, even though the PC market isn’t exactly booming.

So according to people in the know, Intel is looking to pass some of the manufacturing of its lower-end CPUs to TSMC, which makes silicon slices for the likes of Apple, Nvidia and AMD.

DigiTimes‘ sources indicate that chips like Intel’s Atom processor will be made by TSMC to cope with demand for the silicon used in internet of things devices.

Such a move would allow Intel to concentrate on the production of its 14-nanometer Core and Xeon range of chips. That would then help boost the supply of the CPUs which Intel has struggled to fulfil this year.

While Intel has been raking in the cash, failing to meet the demand for its chips has likely stopped it reaching its top earning potential.

Equally, outscoring some lower-end chip production could free Intel up to focus on getting its 10nm chips out of labs and into the market, something it has struggled to do as it hasn’t seemed to have managed figured out how to produce such silicon slices at scale.

Intel will likely have to cough up a healthy amount of cash to TSMC in order to get its chip production in ship-shape, but the move – if indeed it has any grounding in reality – could allow Intel to plunge more investment into the Core and Xeon processors.

And that’s a good thing for us, the PC fans, as it could mean more innovative and interesting next-gen processors to take on the finest silicon from a much reinvigorated AMD. µ

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Source : Inquirer

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