Intel Will Likely Turn to Taiwan Semiconductor for Chips. Here’s Who Benefits Most.

From Barrons, Jan. 11th 2021.

"Rival central-processor maker Advanced Micro Devices (AMD) would appear the most obvious beneficiary—under CEO Lisa Su the company has made gains in market share and transformed the business. The stock gained 3.8% to $98.20 in Monday trading, but it’s not yet clear that AMD would gain a leadership position by default."

"Moving production to Taiwan Semiconductor would likely hurt Intel’s margins, however. Danely estimated that it would result in a 10-percentage-point drop in the company’s gross margin, and a 25-percentage-point drop in its per-share earnings."

The big question I have is what business units and divisions get cut in order to fund the outsourced manufacturing? I think PDX, Ireland, Israel are all at risk of large cuts or even some structural changes, as well as some of the ATM capability. Any thoughts?

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@opo+18SXcSnT ... and anyone who says intel processors are bad .. compare AMD Ryzen 9 with Intel i9 and you will see the performance diff.. it appears to be better.. note that AMD is on 7nm TSMC while i9 is on 10nm ..

plz point to the metric that compares AMD processors and comparable intel processor.

With all the hype of TSMC and better architecture available outside, it is always Intel’s disadvantage. But Intel still can pull it off ...

Intel needs to get at the back of the line for TMSC capacity, AMD was there first.

Only TSMC will benefit if Intel is serious about this. Intel has been a big customer for many years due to the acquisitions Intel has made. These companies mostly stay with TSMC after joining Intel. Intel has also built chipsets at TSMC in the past. Going to TSMC will make Intel more competitive.

I hope they gut Israel

What will be of TMG?

Defect rates on monolithic Tigerlake-H die are likely too high to be profitable. This is probably why Rocketlake - the only way for Intel to get to 8 cores on available processes (while sacrificing graphics and power).

Intel’s primary strength has always been in manufacturing; and Intel has always optimized for it’s manufacturing.

If Intel goes to TSMC, then Intel will just be competing with AMD and the others purely based on architecture.

Sad to say, Intel’s architecture is behind AMD and not competitive at this point. After years of internally singing the benefits of a chip-let architecture, Intel never made it a reality, while AMD did.

On a level playing field, in terms of manufacturing, Intel’s monolithic, single large dir architecture is just behind so behind the times.

Old Intel employees never get cut, they just get redeployed...

Thread regarding Intel Corp. layoffs

Intel Will Likely Turn to Taiwan Semiconductor for Chips. Here’s Who Benefits Most.

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