Intel will outsource most of its chip production

Intel will outsource most of its chip production


MarketBusiness

Anna Savelieva | 01/28/2021

Intel will outsource most of its chip production

Until recently, the company was one of the few that still simultaneously develops and produces its own microcircuits, but in the future it plans to rely more on third-party
factories, and is also considering licensing technologies from third-party firms.

Now the main competitors of Intel in this segment are Samsung and TSMC. The decision to outsource may contribute to an increase in the market, but it is not yet known if this is possible.
partnership between participants, and how this step will affect the market. According to experts, due to its decision, the company lost its manufacturing leadership, giving way to Asian firms.

Intel is currently collaborating with TSMC in the production of chips for self-driving cars, and plans to attract the company to work on graphics chips. Analysts believe that
the Taiwanese firm is more likely to merge further than Samsung, as it is just a contract manufacturer.

Recall that recently TSMC announced its desire to shift focus to the production of automotive chips, provided that the government will help
increase power. At the same time, new 6nm MediaTek chips will be assembled on its lines.

Amid the pandemic and the ongoing trade conflict between China and the United States, many automakers are trying to find a replacement for SMIC, which is experiencing
problems with supplies, and first of all they pay attention to TSMC, however, the volume of orders for several months exceeds the supplier’s capabilities, so that he cannot meet the demand.

At the beginning of this week, the company’s shares were at around $ 130, while Intel shares, on the contrary, show a 4.8% decline.

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