William Gallagher
A new report says that Intel executives are shortly to visit chip company TSMC, specifically to discuss the company's production capacity for 3nm processors.
Backing up previous claims that Intel is considering outsourcing production to TSMC, a new report says that a meeting is to happen in the next few weeks.
"High-level executives of Intel will pay a visit to Taiwan in mid-December," says a brief report in Digitimes, "and meet TSMC to discuss the US vendor's demanded 3nm chip capacity, according to industry sources."
Earlier reports said that Intel was considering the outsourcing, but still hoped to improve its own manufacturing capabilities.
The meeting is said to help Intel "avoid fighting with Apple" for manufacturing capacity. Presumably, this is about scheduling the runs, so TSMC won't be trying to crank out Intel processors at the same time it is producing chips for a future iPhone, but it isn't clear in the report what will be discussed to prevent that.
Separately, TSMC has begun the next stage of pilot production of 3nm processors for Apple. Devices utilizing the chips are not expected until early 2023, which is likely to be the earliest that Intel could see production too.
Digitimes has a poor track record as it pertains to Apple's future plans. It has but a much better one regarding information about Apple's suppliers. Friday's report is more of the latter than the former.
Stephen Silver
Christine McKee
Charles Martin
Amber Neely
30 Comments
Picture you're TSMC.
Apple has been using TSMC to produce their Apple Silicon chips for the better part of a decade. They help finance development of new cutting edge nodes, and have been a critical partner in TSMC's advancement and evolution into the world's best (and possibly largest) fab.
At first, TSMC was reluctant to take on Apple's business because they didn't want to put so many of their eggs into such a large basket, but eventually the two got together and have been working with each other ever since. Apple likes doing business with TSMC because they not a competitor, and their IP won't accidentally leak into some other subdivision's competing products.
Now, along comes this new Johnny-Come-Lately with a fist full of dollars and wants you to produce their CPUs while they're upgrading their own fab to more modern standards.
Do you go with with Intel for the fast cash grab, of stick with the partner who's been working with you all this time?
Of course, when Intel gets their own fabs up to snuff, you know you'll suffer the double whammy of losing not only the business of fabricating Intel CPUs, but Intel will then try to take as many of your other customers as they can.
What's a body to do ... ?
Intel executives are a weak bunch. They did not even visit yet and already (likely) leaked it