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Report: Intel Will Outsource Chipset Production to TSMC

2018.12.27|
Tech Trends

Last week, we reported on Intel’s manufacturing constraints and the difficulties the company faces in ramping up additional 14nm production. Today, a new report claims that the CPU giant will outsource some of its chipset production to TSMC to ease its own capacity woes on 14nm. That’s the word from DigiTimes, which quotes the usual “industry sources” to say that Intel’s overall 14nm chip supply has fallen short by as much as 50 percent — but simultaneously claims that Intel only intends to outsource the production of its H310 and other entry-level chipsets to TSMC. Sources also claim that Intel’s 14nm process could fall short of demand by as much as 50 percent.

This doesn’t make a lot of sense. It’s one thing to say that Intel’s 10nm delay could be causing it some headaches and expansion problems — that’s probably true — but if demand for the company’s parts was running 2x higher than supply, we’d expect to see much higher prices than the relatively modest increases that have hit the market to date. It would also most likely require Intel to shift far more manufacturing capability to TSMC than merely offloading some chipset work.

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