Different sources say that Intel is working to leave the market for custom processors under contract.
Intel's problems with 10nm lithography are not a secret, far from it. Now it appears that the company, according to SemiWiki, would be working on finalizing the custom processor manufacturing business. This media cites different industry sources that gain strength after Digitimes back up the information.
Intel Abandons Custom Processor Production
These media have highlighted that it would not be surprising if Intel will leave the manufacture of chips under contract. Sources indicate that Intel is asking for higher prices than TSMC and Samsung. Notably, the company's manufacturing process lags behind that of its competitors. Thus, its foundry service "exists only at the name level, without large customers or large orders being registered"
Currently the manufacturer has an excess demand for processors, preventing their production. The company will continue to "selectively use foundries for certain technologies where it is most convenient for business." Closing the foundries for external clients would be a logical step. We must remember that currently it has turned to TSMC for the manufacture of very basic processors and chipsets.
“The launch of Intel's 10nm platform has been delayed for a long time, with the probability that it will not arrive until the second half of 2019. This has not only interrupted the advancement of Intel products at 10nm, but has also reduced the supply of CPUs to 14nm and 22nm to customers, in addition to the roadmap of LG's mobile platform affected by the delay.
In fact, it's time Intel needed to refocus its production, the sources said. "
Taiwanese sources are not surprised by this move to abandon contract chip production. The company has never been really interested in this market. It is currently a service they offer, but it is not relevant to them. What's more, AMD has played very well in this market.
It entered this market in 2010 primarily to optimize its production capabilities. The limited capacity of the 14nm and 22nm nodes limits Intel from taking contract orders.
