Intel Plans On Ramping Up “Outsourcing” To TSMC, Orders Exceeding $19 Billion

wccftech.com:

Intel plans on taking the help of TSMC in the future, as its foundry division becomes a victim of delays and process inefficiencies.

Taiwan Commercial Times (via Trendforce) reports that Intel eyes on utilizing TSMC's capabilities to address its shortcomings. With the rising trend of outsourcing, Intel will reportedly outsource a hefty share of its orders to TSMC in the 2024-2025 timeframe. Intel Foundry has been witnessing process delays and imperfections when it comes to yield rates, especially with its 10nm process, due to which the company now plans on reaching out to TSMC for order fulfillment.

The analysis comes from the banking firm Goldman Sachs, stating that the outsourcing could amount to a total of $18.6 billion and $19.4 billion, in 2024 and 2025 respectively. It is reported that TSMC's revenue through fabrication services could reach up to $9.7 billion in the coming years, with a fair portion actually being contributed by Intel themselves. Through this collaboration, Intel aims at enhancing its chip design division, which is severely behind its competitors and is a big contributing factor towards the current state of IFS.

This in any way isn't good news for Intel, since it would deviate them from their goal of being "self-sufficient". We recently reported about the company's Meteor Lake output seeing a slash as well, owing to concerns with the wafer output and the corresponding CPU tile size. While Chipzilla has taken a "confident" stance with its Intel 4 process, it certainly won't meet the expectations, judging by the reports revolving around it.

Intel's foundry division has been lacking for a while now, as the company is unable to grasp the market's confidence, ultimately leading to competitors taking the