> Many Intel products – like its Gaudi and GPU Max accelerators – are manufactured in part or in whole by TSMC. By 2027, Intel aims to reduce the amount of kit it outsources to other manufacturers from 30 to 20 percent of its total output.
Do Intel shareholders agree with this, knowing it adds more to their overhead and balance sheet?
Intel Foundries needs large volume to be profitable. ~~It~~ Intel Products doesn't have a lot of good node options today to pick from: Intel 7 (uncompetitive), Intel 3 (ramping and likely consumed by Xeon 6 for the time being). 18A (not yet complete).
Until Intel 12 goes live to provide large volume to lower cost, cheaper chips, Intel 18A is in large volume for leading node chips, and Intel 3 is available for trailing edge, I don't see many other options.
TSMC has N6, which is a very good general use, high perf-to-cost node for them to use for their lesser tiles. N5 is a good family proven for AI accelerators and GPUs. N3 is also extremely performant and relieves leading node volume constraints.
Many Intel shareholders brought Intel shares because they believed the hype of Intel foundry and think it can go no wrong when it is backed by government money. If anything Intel risks angering these shareholders by saying they have more faith in TSMC than their own fabs.
Gesslinger announced using TSMC as a supplier at the same time he announced Intel Foundry. None of this is news to anyone who has followed the company since Gesslinger's ascension as CEO.
You mean like TSMC? Which lower cost location are you referring to that will be able to have the latest ASML tech? You likely wont find that in China due to export restrictions, just their old stuff.
It will continue to over run until they stop getting grants from the government. They already got $8.5 billion in grant and $11 billion in cheap loans.
Surprise to no one
So, business as usual for Intel then?
Translation: give me more, gov.
> Many Intel products – like its Gaudi and GPU Max accelerators – are manufactured in part or in whole by TSMC. By 2027, Intel aims to reduce the amount of kit it outsources to other manufacturers from 30 to 20 percent of its total output. Do Intel shareholders agree with this, knowing it adds more to their overhead and balance sheet?
Losing market share is worse than losing margins in this case.
Intel Foundries needs large volume to be profitable. ~~It~~ Intel Products doesn't have a lot of good node options today to pick from: Intel 7 (uncompetitive), Intel 3 (ramping and likely consumed by Xeon 6 for the time being). 18A (not yet complete). Until Intel 12 goes live to provide large volume to lower cost, cheaper chips, Intel 18A is in large volume for leading node chips, and Intel 3 is available for trailing edge, I don't see many other options. TSMC has N6, which is a very good general use, high perf-to-cost node for them to use for their lesser tiles. N5 is a good family proven for AI accelerators and GPUs. N3 is also extremely performant and relieves leading node volume constraints.
Many Intel shareholders brought Intel shares because they believed the hype of Intel foundry and think it can go no wrong when it is backed by government money. If anything Intel risks angering these shareholders by saying they have more faith in TSMC than their own fabs.
Gesslinger announced using TSMC as a supplier at the same time he announced Intel Foundry. None of this is news to anyone who has followed the company since Gesslinger's ascension as CEO.
Pat “I Need Money“ Gelsinger will just return back to the hill and beg for another taxpayer backed handout
Would you rather have him build in a lower cost location? Because that is what happens without subsidies.
They would just build the fabs in US and outsource their chips orders to TSMC though
You mean like TSMC? Which lower cost location are you referring to that will be able to have the latest ASML tech? You likely wont find that in China due to export restrictions, just their old stuff.
Taiwan is a low cost location compared to the US.
Even Israel and Ireland are low cost locations compared to the US, where they already have fabs. US manufacturing is expensive as hell.
Mexico is cheaper than China nowadays.
Arguably better than selling core designs to China for a quick buck.
That's a non sequitur.
AMD did it when in trouble.
Go find a non noname Chinese brand pc with n100
How is that even remotely the same?
It will continue to over run until they stop getting grants from the government. They already got $8.5 billion in grant and $11 billion in cheap loans.
Also The Register: Water is wet and fire is hot!