Intel has made headlines by placing significant orders for 2nm technology at TSMC, a strategic decision aligned with its ambition to reclaim its position in the desktop CPU market.
Intel’s Strategic Shift: Embracing Dual-Sourcing with TSMC for Desktop CPUs
Under new leadership, Intel is making bold moves to enhance its competitive edge by adopting advanced technologies for its upcoming CPUs. A recent report from Taiwan Economic Daily indicates that Intel has outsourced the compute tile for its Nova Lake CPUs to TSMC, utilizing the cutting-edge 2nm fabrication process. This partnership signifies a focused effort by Intel to innovate and meet consumer demands, yet it casts uncertainty on the future of its own 18A process node, which is touted as superior to TSMC’s N2 technology.
Michelle Johnston Holthaus, Intel’s Products CEO, emphasized the company’s commitment to meeting market expectations. She confirmed that Intel would not shy away from using TSMC’s capabilities, paving the way for a dual-sourcing strategy that combines TSMC’s advanced nodes with Intel Foundry Services (IFS) for its product lineup. This approach may reflect Intel’s attempt to balance performance and innovation while maintaining control over its flagship offerings.
The 2nm process has garnered significant interest from major players in the industry, including Apple and AMD, alongside Intel’s latest foray. AMD recently reported it is the inaugural customer for TSMC’s 2nm technology, utilizing it for its forthcoming 6th-generation EPYC “Venice”processors. Additionally, Apple has plans to incorporate this advanced process in its anticipated A20 chip, designed for the iPhone 18 series. While this cutting-edge technology promises improved performance, it also comes with a higher price tag compared to previous generation processes due to supply chain uncertainties.
Despite the focus on external partnerships, Intel continues to advance its own in-house fabrication efforts. We can expect the introduction of the 18A process in conjunction with Panther Lake SoCs and Clearwater Forest Xeon chips. The future direction of Intel’s in-house capabilities may depend on the success of these products. For now, it is evident that Intel’s dual-sourcing approach will play a pivotal role in its recovery and growth plans.
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