Intel will transfer the release of its chipsets and entry-level processors to third-party contract manufacturers

As supplies of Intel processors continue to lag behind existing demand, the company is trying to look for new ways to combat the shortage of its products.

As previously reported, due to lack of production capacity, carrying out the production of the standards of the 14-nanometer process, Intel is forced to transfer the release of at least one chipset on the older 22-nanometer process technology. But this clearly was not enough. As a result, Intel intends to transfer the manufacture of some of its chips to third-party contract manufacturers.

This is about the entry-level processors of the Atom series and some chipsets. At the same time, the company will continue to produce high-performance processors for the Xeon and Core lines. This is evidenced by data in the supply channel, according to the resource digitimes. At the same time, sources point out that only TSMC is able to fulfill such large orders.

However, Intel itself refused to comment on “market rumors.”

Source: digitimes

  • The shortage of Intel processors resulted from the fact that the chipmaker has already For several years, the launch of the mass production of chips according to the norms of the 10-nanometer process. As a result, more and more products are being manufactured using 14nm technology, but the corresponding production capacity was clearly not enough for such volumes.
  • As a result, in the second half of 2018, there was a shortage of some popular Intel processor models, and this led to a jump in prices for these and some other chips, including rival company AMD.
  • Intel is actively trying to solve the problem of lack of production capacity. In addition to the already mentioned measures to eliminate the deficit, such as transferring the production of some chips to the older 22-nanometer process technology and transferring the production of some devices to third-party manufacturers, Intel also intends to expand its own production of products according to the standards of the 14-nanometer process technology. The company plans to invest an additional $ 1 billion in existing 14-nm production lines in factories in the United States (Oregon and Arizona), Ireland and Israel.
  • However, in the short term, it is unlikely to eliminate the deficit. According to analysts, stabilization in the market can only be expected in 2019.

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