Intel Will Keep Using TSMC's Services Even When 18A Is Ramped Up: 'It Is A Good Supplier'
Intel plans to continue relying on TSMC for chip production even as it ramps up its own 18A fabrication technology, with a current outsourcing rate of around 30%. Despite aspirations to minimize reliance on external suppliers, Intel acknowledges the benefits of maintaining a relationship with TSMC for certain niche products and fostering competition between its foundry and TSMC. The company is assessing the optimal percentage of products to outsource while focusing on increasing internal production to improve gross margins.
- This strategic pivot highlights the complexities of balancing in-house capabilities with the advantages of partnering with established suppliers, a dynamic that could influence future industry standards for semiconductor manufacturing.
- As Intel navigates its production strategy, what implications will this have for its competitive edge against rivals like AMD and NVIDIA in the evolving semiconductor landscape?