Intel is reportedly increasing its reliance on TSMC for chip production, specifically on the new 3nm process node. According to a report from UDN, Intel is outsourcing more of its chip manufacturing to TSMC, along with Taiwanese companies such as Egis, Shichixin, and KYEC. While these companies have not commented on the rumors, Intel’s increased outsourcing to TSMC is a clear indication of its ongoing challenges with its own advanced processes. Intel’s Intel 18A node is still a year away from production, and its GPUs and new CPUs are scheduled to be manufactured by TSMC in the next 12-18 months. This includes the new Core Ultra 200 series “Arrow Lake” CPUs, as well as the next-generation Falcon Shores AI chip, which is set to enter mass production on TSMC’s 3nm process node in 2025. The decision to outsource the Falcon Shores AI chip’s 3nm backend design and advanced packaging to Egis Group, KYEC, and other Taiwanese companies reinforces the growing reliance on TSMC’s expertise and technology. This outsourcing strategy highlights Intel’s ongoing efforts to overcome its struggles with its own advanced processes and secure access to leading-edge manufacturing capabilities.
Intel Leans on TSMC for 3nm Chip Production, Outsources Backend Design and Packaging
