Intel to outsource entry-level processor production

TSMC will look to absorb Intel's shortfall in chip making

Intel could begin to outsource some of its entry-level processor, chipset and IoT production, as the tech firm seeks to address current high demand for its products.

According to DigiTimes, supply chain sources have revealed that Intel's Atom processors are to be some of the chips manufactured elsewhere, with Taiwan Semiconductor Manufacturing Company (TSMC) reportedly the only company adequately equipped to handle rush orders.

The Taiwanese firm already manufactures Intel's FPGA processors - having previously been involved with Atom SoCs and Intel's SoFIA SoCs - and Intel has been in discussion with TSMC about it's entry-level CPUs since mid-2018, the sources noted.

Intel itself has declined to comment on what it labels "market rumours", but the tech giant did acknowledge its struggle to meet demand in its Q3 2018 financial results, despite reporting an estimate-topping $19.2 billion revenue. Intel also said last month that it will be investing an additional $1 billion into its 14nm manufacturing sites.

"Stronger than expected customer demand across our PC and data-centric businesses continued in the third quarter. This drove record revenue and another raise to our full-year outlook, which is now up more than six billion dollars from our January expectations. We are thrilled that in a highly competitive market, customers continue to choose Intel," Bob Swan, CFO and interim CEO at Intel, said at the time.

"In the fourth quarter, we remain focused on the challenge of supplying the incredible market demand for Intel products to support our customers' growth. We expect 2018 will be another record year for Intel, and our transformation positions us to win share in an expanded $300 billion total addressable market."

Featured Resources

How to scale your organisation in the cloud

How to overcome common scaling challenges and choose the right scalable cloud service

Download now

The people factor: A critical ingredient for intelligent communications

How to improve communication within your business

Download now

Future of video conferencing

Optimising video conferencing features to achieve business goals

Download now

Improving cyber security for remote working

13 recommendations for security from any location

Download now

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

26 Feb 2021
How to connect one, two or more monitors to your laptop
Laptops

How to connect one, two or more monitors to your laptop

25 Feb 2021
How to build a CMS with React and Google Sheets
content management system (CMS)

How to build a CMS with React and Google Sheets

24 Feb 2021