Intel will be going back to TSMC for the production of PC chip-sets for next-generation processors, according to DigiTimes.
The speculation is that Intel will out-source its Panther Point chip-sets which support Ivy Bridge processors, to be made on a 22nm process, which are due to be launched in Q1 2012.
The rationale for the move to TSMC is that this will reduce production costs to compete with AMD’s Fusion processors called APUs (Accelerated Processor Units) which put the CPU and GPU on the same chip. The first APU, called Zacate, is expected early in 2011.
TSMC’s recent announcement of a $5-9+bn capex budget for 2011 is said to have persuaded Intel to go down the foundry route again.
The last time such a plan was mooted was in March 2009 when Intel said it would have its Atom chips made at TSMC. This agreement seemed to come to nothing.
There is considerable speculation over Intel’s fab strategy. When it did the Atom deal with TSMC the talk was that Intel’s own fabs, geared to make $100 processors, couldn’t profitably make $20 Atoms.
Then it was argued that Intel was using TSMC in order to adopt the SoC model used in the telecoms world - where processor cores are put into customised ICs. This strategy never played out because, it was said, no one wanted to use an Atom core in an SoC.
Then Intel announced a foundry deal with FPGA-maker Achronix – leading to a talk that Intel may be seeking to defray the costs of its fabs by doing foundry work for other companies – in the same way that Samsung does.
However no other customers for Intel’s foundry services have been announced.