Intel Secures $14 Billion Deal with TSMC for 3nm Chips, Set to Revolutionize Tech

December 2, 2023 by our News Team

Intel secures a $14 billion deal with TSMC for 3nm chips, solidifying their position as a key player in the tech industry and showcasing their commitment to innovation and staying ahead of the competition.

  • Secures access to advanced 3nm chip manufacturing process
  • Demonstrates commitment to staying at the forefront of technology
  • Allows for more flexibility in supply chain and potential for third-party foundry clients

Intel has made a major move in the tech industry by securing a $14 billion deal with TSMC for 3nm chips. This deal is set to revolutionize the world of technology and solidify Intel’s position as a key player in the market.

According to Mark Liu, the Chairman of TSMC’s Foundry Board, Intel will be ordering $4 billion worth of N3 (3nm) chip supply for its upcoming Lunar Lake processors. This is a significant step for Intel, as it marks their transition from using TSMC’s 6nm node capacity for their Graphics Cards to the more advanced 3nm process.

By securing this deal, Intel has become TSMC’s second-largest customer, surpassing competitors like AMD and nVidia. Only Apple remains ahead of Intel in terms of their partnership with the Taiwanese foundry. This move demonstrates Intel’s commitment to staying at the forefront of technological advancements and maintaining its competitive edge in the industry.

In addition to the 3nm order, Intel will also be relying on TSMC for their 4nm and 3nm orders for the Meteor Lake/Arrow Lake tGPU and the 2nd Gen Arc Battlemage GPUs. This further solidifies Intel’s partnership with TSMC and highlights their reliance on the Taiwanese foundry for their future products.

The investment into TSMC’s 3nm node is expected to reach a total of $14 billion by 2025. This significant financial commitment showcases Intel’s dedication to pushing the boundaries of technology and ensuring they have access to chip manufacturing processes.

One of the key advantages of this partnership is the chiplet architecture, which gives Intel more flexibility in its supply chain. By utilizing TSMC for certain components, such as the tGPU and SoC tiles, Intel can ease the load on its internal foundry and meet deadlines more efficiently. This also opens up opportunities for third-party foundry clients, as Intel can now allocate more resources to cater to their needs.

Intel’s strategy of utilizing third-party foundries is crucial for their ambitious plan of releasing five nodes in four years. By offloading a significant portion of their production capacity to TSMC, Intel can ensure a smoother and more efficient manufacturing process, ultimately benefiting their customers.

TSMC is also prepared to meet Intel’s demands, with plans to fabricate 15,000 3nm wafers per month by the end of 2024, and scaling it up to 30,000 the following year. This level of production capacity highlights TSMC’s commitment to supporting Intel’s growth and innovation.

Overall, Intel’s $14 billion deal with TSMC for 3nm chips is a game-changer in the tech industry. It showcases Intel’s determination to stay ahead of the competition and invest in technology. With this partnership, Intel is well-positioned to revolutionize the world of tech and deliver products to consumers in the coming years.

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Background Information

About AMD: AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

AMD website  AMD LinkedIn

About Apple: Apple Inc., known for its iconic products, was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. The company has since revolutionized the technology landscape with innovations like the Macintosh computer, iPod, iPhone, iPad, and more. for its emphasis on design, user experience, and ecosystem integration, Apple's devices and software have made a profound impact on various industries. With a commitment to quality and innovation, Apple remains a global technology leader.

Apple website  Apple LinkedIn

About Intel: Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

Intel website  Intel LinkedIn

About nVidia: NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

nVidia website  nVidia LinkedIn

About TSMC: TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.

TSMC website  TSMC LinkedIn

Technology Explained

chiplet: Chiplets are a new type of technology that is revolutionizing the computer industry. They are small, modular components that can be used to build powerful computing systems. Chiplets are designed to be used in combination with other components, such as processors, memory, and storage, to create a complete system. This allows for more efficient and cost-effective production of computers, as well as more powerful and versatile systems. Chiplets can be used to create powerful gaming PCs, high-end workstations, and even supercomputers. They are also being used in the development of artificial intelligence and machine learning applications. Chiplets are an exciting new technology that is changing the way we build and use computers.

Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

SoC: A System-on-Chip (SoC) is a highly integrated semiconductor device that encapsulates various electronic components, including processors, memory, input/output interfaces, and often specialized hardware components, all on a single chip. SoCs are designed to provide a complete computing system or subsystem within a single chip package, offering enhanced performance, power efficiency, and compactness. They are commonly used in a wide range of devices, from smartphones and tablets to embedded systems and IoT devices, streamlining hardware complexity and facilitating efficient integration of multiple functions onto a single chip.

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