The 11th generation Intel Core desktop processors (codenamed “Rocket Lake-S”) will provide increased performance and speeds. They will be launched in the first quarter of 2021. (Credit: Intel Corporation)
In a press, TrendForce announced that according to its investigation, TSMC will mass produce next-generation Intel entry-level, intermediate and advanced CPUs on its 5nm and 3nm process nodes. Intel has already announced that it will outsource several of its non-CPU chips to third-party foundries, but this big news confirms that they are planning to transfer even their largest product lines to outside factories.
Intel Next-Gen Core i3 CPUs will be produced on TSMC’s 5nm process node, high end and intermediate CPUs will be produced on TSMC’s 3nm node in 2H 2022
It appears that after Alder Lake in 2H 2021, Intel will move to TSMC as its main partner in the mass production of its next generation CPU line. The press release states that Intel Core i3 CPUs will be the first mass production line made at TSMC and will use its 5 nm process node. Note that mass production does not exactly mean a difficult launch and we may end up getting these chips around 2022. With that said, Alder Lake CPUs will focus on high performance while using the 10 nm Enhanced SuperFin process node.
But Intel plans to move its entire mid- and high-performance line to TSMC by 2H 2022. Next-generation processors will feature TSMC’s most advanced 3nm process node and be the successors to the Alder Lake line. It is not known whether these will be mobility or desktop parts, but it appears that Intel can use TSMC for mass production of both segments.
Press release – Intel has outsourced the production of about 15-20% of its non-CPU chips, with most wafer starts for these products attributed to TSMC and UMC, according to the latest TrendForce investigations. While the company is planning to start mass production of Core i3 CPUs on TSMC’s 5 nm node in 2H21, Intel’s medium and high performance CPUs are designed to go into mass production using TSMC’s 3 nm node on 2H22.
In recent years, Intel has experienced some setbacks in the development of 10nm and 7nm processes, which in turn has severely damaged its competitiveness in the market. With respect to smartphone processors, many of which are based on the ARM architecture, Apple and HiSilicon were able to announce the most advanced mobile AP-SoC before their competitors, thanks to TSMC’s technical advances in process technology.
With respect to CPUs, AMD, which is also outsourcing its CPU production to TSMC, is progressively threatening Intel’s CPU to PC market share. In addition, Intel lost CPU orders for the MacBook and Mac Mini, as both products are now equipped with Apple Silicon M1 processors, which were announced by Apple last year and manufactured by TSMC. The changes mentioned in the smartphone and CPU to PC markets have prompted Intel to announce its intention to outsource CPU manufacturing in 2H20.
TrendForce believes that increasing the outsourcing of its product lines will enable Intel to not only continue its existence as a major IDM, but also to maintain internal production lines for chips with high margins, while spending CAPEX more effectively on advanced R&D. In addition, TSMC offers a diverse range of solutions that Intel can use during product development (for example, chiplets, CoWoS, InFO and SoIC). In all, Intel will be more flexible in its planning and will have access to several value-added opportunities when employing TSMC’s production lines. At the same time, Intel now has a chance to be on a par with AMD when it comes to manufacturing CPUs with advanced process technologies.
Intel has previously confirmed that DG1, Tiger Lake and SG1 (a type of DG1 designed for servers) will be manufactured internally in the Intel 10nm SuperFin process. The next Intel Xe HPG GPU for gamers will be made in an external casting process – most likely TSMC (and probably the 7 nm process considering the 2021 timeline).