The 11th generation Intel Core desktop processors (codenamed “Rocket Lake-S”) deliver awkward performance and speed. They begin in the first quarter of 2021. (Credit: Intel Corporation)
In a press release, TrendForce announced that, according to their investigation, TSMC will be producing mass production of Intel’s next-generation entry-level, mid-range and high-end CPUs on its 5nm and 3nm process nodes. Intel has already announced that it will outsource several of its non-processor chips to third-party foundries, but this important news confirms that they plan to move even their largest product range to external factories.
Intel’s next generation Core i3 CPUs produced on TSMC’s 5nm process node, high-end and mid-range CPUs produced on TSMC’s 3nm node in 2H 2022
It looks like Intel will move to Alder Lake after 2-year 2021 to TSMC as its main partner in the production of its next-generation CPU series. The press release states that Intel’s Core i3 CPUs will be the first mass production series at TSMC and will use its 5nm process node. Note that mass production does not exactly mean a hard launch, and that we will get these chips later around 2022. With that said, Alder Lake CPUs will focus on high performance while using the 10nm Enhanced SuperFin process node.
However, Intel plans to move its entire mid-range and high-performance range to TSMC by 2H 2022. The next generation of processors will have the more advanced 3nm process node of TSMC and will be the successors of the Alder Lake series. It is not known if these are mobility or desktop components, but Intel may use TSMC for mass production of both segments from the direction it is heading.
Press release – Intel has outsourced production of about 15-20% of its non-CPU chips, with most wafer starts for these products assigned to TSMC and UMC, according to TrendForce’s latest research. While the company plans to begin mass production of Core i3 CPUs at TSMC’s 5nm node in 2H21, Intel’s mid-range and high-end CPUs are expected to begin mass production using TSMC’s 3nm node in 2H22.
Over the past few years, Intel has experienced some setbacks in the development of 10 nm and 7 nm processes, which in turn has greatly hampered its competitiveness in the market. In terms of smartphone processors, most of which are based on the ARM architecture, Apple and HiSilicon were able to announce the most advanced mobile AP-SoC to their competitors, thanks to TSMC’s technical breakthroughs in process technology.
As for CPUs, AMD, which also outsources its CPU production to TSMC, is gradually threatening the market share of Intel’s PC CPUs. Furthermore, Intel has lost CPU orders for the MacBook and Mac Mini, as both of these products are now equipped with Apple Silicon M1 processors, which were announced by Apple last year and manufactured by TSMC. The above shifts in the markets for smartphones and computer processors led Intel to announce its intention to outsource the production of CPUs in 2H20.
TrendForce believes that increased outsourcing of its product lines will allow Intel not only to continue as a key IDM, but also to maintain its own high-margin chip production lines, while CAPEX is more effective at advanced R&D spending can spend. In addition, TSMC offers a variety of solutions that Intel can use during product development (e.g. Chiplets, CoWoS, InFO and SoIC). All in all, Intel will be more flexible in its planning and access to various value-added opportunities by employing TSMC’s production lines. At the same time, Intel now has the opportunity to be on the same level as AMD when it comes to manufacturing CPUs with advanced process technologies.
Intel has previously confirmed that DG1, Tiger Lake and SG1 (a fragrance of DG1 designed for servers) will be manufactured internally during the Intel 10nm SuperFin process. The upcoming Intel Xe HPG GPU for gamers will be made on an external foundry process – probably TSMC (and probably the 7nm process considering the 2021 timeline).