Intel Plans to Use External Factories to Source Chip Subcomponents – TSMC Partnerships are Detailed

Intel Plans to Use External Factories to Source Chip Subcomponents - TSMC Partnerships are Detailed

Intel released fresh information on its turnaround strategy for sourcing semiconductor subcomponents from outside manufacturers on Thursday, including new details on its relationship with competitor Taiwan Semiconductor Manufacturing Company (TSMC).

Intel is one of the few semiconductor companies to develop and manufacture its own chips. After manufacturing mistakes, it lost its dominance in creating the quickest chips to TSMC, which concentrates on manufacturing designs from foreign businesses.

Intel CEO Pat Gelsinger detailed the company’s goal to reclaim its manufacturing footing by 2025 earlier this year.

Meanwhile, Intel is attempting to prevent rivals like as Advanced Micro Devices (AMD) and Nvidia, who have speedier products, from further eroding its chip market share.

Intel’s response includes sourcing “tiles” from competitors like as TSMC and sewing them together in Intel’s own facilities using packaging technologies. Intel said on Thursday that critical tiles created with TMSC’s “N5” and “N7” chipmaking technologies will be put on top of an Intel-built foundation in its new “Ponte Vecchio” chip.

The first significant use of Intel’s “Ponte Vecchio” processor will be in a supercomputer being built for the US Department of Energy.

Raja Koduri, senior vice president of Intel’s accelerated computing systems and graphics business, admitted that it had been years since Intel took on Nvidia in the race to speed up artificial intelligence software, a sector that has fueled most of the chip industry’s recent development.

At some of those jobs, Koduri claims the “Ponte Vecchio” processor is quicker than Nvidia’s offerings.

“We basically let them have free run for a decade,” Koduri added. “That’s everything for now.”

Intel also gave its graphics chips a new moniker this week, which will compete with Nvidia in the other main sector of video games.

Intel said on Thursday that its “Alchemist” graphics processors would be manufactured by TSMC utilising the latter’s “N6” chipmaking technology, which is an improved version of its “N7” technology. Intel would employ TSMC’s improved technology, according to Reuters in January.

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