While Intel initially viewed TSMC as a temporary partner, the processor specialist is now seeking a long-term approach for the production of its own chips.
Intel aims to engage in a long-term partnership with TSMC. After delays in developing its own production lines, Intel approached the manufacturer last year. Lunar Lake will be produced on TSMC’s N3B process, and Intel is also consulting the competitor for Arrow Lake. In a conversation between John Pitzer of Intel and someone from Morgan Stanley, Pitzer now indicates that the collaboration will not end immediately.
For the Long Term
Initially, the intention was indeed to fully focus on their own production lines again after a stint with TSMC. However, over the past six months, these plans have taken a different turn. The current strategy is to place at least part of the production with TSMC.
The decision comes amid delays of planned products. The Intel 18A process doesn’t seem as ready as initially indicated. Panther Lake, which is to roll off that line, will only appear in large volumes in 2026. It’s unclear what the relationship with TSMC means for Panther Lake, as that chip is likely to remain tied to Intel 18A.
By tying at least part of the CPUs to TSMC, Intel can better arm itself against setbacks in Intel Foundry’s R&D. Delays like the current one can then be compensated for by other competitive products that do appear on time.
Notable Collaboration
The collaboration between Intel and TSMC is notable. For a long time, Intel has almost exclusively produced all its chips internally. However, around 2020, the company experienced some technical setbacks and lost its technological supremacy. Technician Pat Gelsinger was appointed to get Intel back on track, but surprisingly had to leave early this year. Under his influence, chip development and production were separated more, making the tandem with TSMC possible.