Samsung To Fabricate Intel’s 14nm Core Chips: Last Resort For Intel To Stay On Top?

We know that the demand for PC CPUs is increasing day by day, and Intel being the biggest manufacturer of processors, is trying hard to keep the supply on par. A few weeks ago, Intel wrote an open letter to its partner, saying that they won’t be able to meet the market demand as they are still facing supply issues. On top of it, for the first time in the company’s history, AMD is actually giving them a hard competition. In order to keep themselves at the top of the game, Intel would have to fix their supply issues.

AMD is slowly minimizing the performance gap which is another problem for Intel. They would have to sort their supply issues and at the same time, compete with AMD. To tackle the supply issue, Intel could invest in a new foundry, which will allow AMD to gather the market as the performance gap is now shallow.

To tackle the competition with AMD, Intel could invest in their 7nm EUV process (10nm process is still in the air though), and this will again allow AMD to gather the market as they have the potential to beat Intel in terms of performance. So, Intel has wound itself in a rare lose-lose situation. Whatever the company decides will make them lose their crucial position in the consumer market.

Risking the consumer market, after seeing what AMD presented in the HEDT market, would not be very good for Intel. A few months ago, we reported that Intel might use a helping hand (Samsung) to fabricate their Core chips. Recently, a report from a Korean publication suggests that Samsung has won the order to manufacture Intel’s processors.

It should be noted that Intel has used the services of TSMC to create non-essential chips in the past, but outsourcing its Core chips will be very new for Intel. Since Intel follows a strict standard for its processors, they would have to work very closely with Samsung to negate any disparity between the chips fabricated in both foundries.

The validity of the report is still questionable. However, if it is true then Intel would be able to sort their supply issues. On top of it, Intel would be able to retain the market share.


Close