Question Intel joins the war for TSMC wafers

[Kedas]

Report: Intel Signs Contract To Outsource CPUs To TSMC's 3nm Process

A massive claim has just been made by Taiwan's leading newspaper, DigiTimes: Intel has apparently signed a contract with TSMC to fabricate core CPU product lines in 2020 on their 3nm process. This, if true, would change the dynamics of the x86 industry completely next year. Keep in mind, we are...

wccftech.com

So will TSMC just have more fabs build or will prices rise making it bad for all customers?
Since intel still plans to make their own wafers in the future, looks like it will mainly be high prices.

There is already a thread about this.
https://forums.anandtech.com/thread...ill-build-core-i3s-at-tsmc.2589616/?view=date

AT Mod Usandthem

 

[Topweasel]

I wouldn't be so sure it will be higher prices. Intel isn't going to want to pay customer pricing on wafers on large die low yield parts. On server and medium to high end desktops Intel will require performance metrics that I doubt they will be willing to leave it to a customer process.

These will be small die high volume chips. Giving them more room for their high margin products allowing them to keep those high margins. I am guessing they are going to request enough wafers to hedge their bets. If TSMC is far enough ahead they can probably plan to have TSMC do their high performance parts, but right now. It's probably for Mobile and low end desktop parts and XGe skus.

They probably needed a large contract with TSMC for this, and far enough ahead that they can expand ahead of shipping. So this shouldn't be stealing Apple or AMD wafers.

 

[darkswordsman17]

Hmm, maybe its the "3nm process in 2020" line that's making me feel like there's something not quite right with this story (I'm guessing they copy-pasted a previous story)?

If true, this isn't for cheap stuff, sorry. Plus, Intel is going chiplets both CPU and GPU and their high performance stuff is going to be made of multiple small dice. This also can't be a good sign for Intel's own process development.

 

[positivedoppler]

Hmm, maybe its the "3nm process in 2020" line that's making me feel like there's something not quite right with this story (I'm guessing they copy-pasted a previous story)?

If true, this isn't for cheap stuff, sorry. Plus, Intel is going chiplets both CPU and GPU and their high performance stuff is going to be made of multiple small dice. This also can't be a good sign for Intel's own process development.

probably just badly written. The contract for 3nm was signed in 2020 with manufacturing scheduled for 2022

 

[Topweasel]

Hmm, maybe its the "3nm process in 2020" line that's making me feel like there's something not quite right with this story (I'm guessing they copy-pasted a previous story)?

If true, this isn't for cheap stuff, sorry. Plus, Intel is going chiplets both CPU and GPU and their high performance stuff is going to be made of multiple small dice. This also can't be a good sign for Intel's own process development.

Well as they go chiplet that is always a possibility. But unless they felt that performance was costing them sales or they were not going to have anything near competitive with TSMC at the time I doubt they are willing to give margin to TSMC.

There is a difference between what we and what they see as a business. One of the reasons why we saw a laptop and desktop shortage of Intel CPU's through 2019 and into the early part of 2020 was that Intel's server CPU's were flying off the shelf. Every wafer they made with the 8c chip for Coffeelake -R was one not making the XCC chips that they were selling from 5k-10k per chip.

I have a feeling that Intel is planning on separating their manufacturing from high performance and enterprise products and general consumer products. To start with it will be the smallest high volume, performance means little products (Laptop specific dies, XGe base products) and so on. The Datacenter stuff will always stay in house. Specially as the move to more flexible design elements.

 

[moinmoin]

Another way to write the title: "TSMC wins the financial support of Intel in its effort to expand its N3 capacity further"

Article itself states Apple, AMD, MediaTek and many others are already in.

And the messenger states himself:

https://twitter.com/x/status/1354746506339876865

 

[sandorski]

I'm surprised they haven't spun off their Fabs into a separate entity. It seems like they are abandoning Manufacturing, spinning it off is a way to get some extra Value out of it, maybe it will even find a way to survive on its' own.

 

[ondma]

Doesnt make sense to me, especially the claim that Intel will be the second largest customer for 3 nm. AMD must already have contracts in place, and I dont see how they could have the capacity to give Intel more wafers than AMD has reserved. I would like to see it happen, actually, since then Intel would have process parity, but it just seems unrealistic.