TSMC may use 5nm process to produce Core i3 chips for Intel

Intel hopes that after outsourcing, it can focus more on breakthroughs in the manufacturing process.

Market research company TrendForce indicated in a report released recently, the world’s largest chip foundry TSMC will use the 5nm process to produce Intel Core i3 chips.

At present, Intel has outsourced its entry-level chip series to TSMC and will start production in the second half of this year.

In Intel’s fourth-quarter earnings conference call, the incoming Intel CEO Pat Gelsinger (Pat Gelsinger) said that he believes that most of the company’s products will still be produced in-house in 2023, although it is “probable”. External foundries are used more than in the past.

In addition, TrendForce said that TSMC expects to use the 3nm process to produce high-end chips for Intel in the second half of 2022.

According to TrendForce, Intel has long outsourced the production of a large number of non-CPU chips to Taiwan semiconductor Manufacturing Co (TSMC) and United Microelectronics (UMC), accounting for approximately 15% to 20% of its output. Combined with Intel’s annual revenue of 70 billion U.S. dollars, this 15% to 20% outsourcing may be worth 10.5 billion to 14 billion U.S. dollars in 2020.

Intel’s outsourcing of low-end processors this time allows it to maintain a competitive advantage, and it is responsible for the production of higher-profit chips internally.

Compared with TSMC, Intel is still struggling with cutting-edge process technology for its 10nm and 7nm processes. Intel announced on its official website that the company’s board of directors has appointed Pat Kilsinger as the new CEO and mentioned in the announcement. Significant progress has been made in 7nm process technology, but due to the yield problem, Intel’s current technology node is still stuck at 10nm.

In addition to the processor, Intel will abandon the plan of self-developed second-generation discrete graphics with a 7nm process, and instead seek TSMC for foundry, hoping to focus on achieving breakthroughs in the process, and then counter the rise of Nvidia.

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