Intel Outsources Desktop CPU Production to Samsung Due to Worsening Chip Shortage

[Tsing]

Intel has reportedly hired Samsung to help curb its chip supply woes. According to a report by Maeil Business News Korea, the South Korean electronics giant has won orders to produce Intel's desktop processors, which are traditionally produced in-house. The unprecedented decision provides insight into just how bad the shortage really is.

Market observers say Samsung Electronics has emerged as a strong partner for Intel as TSMC maintains supply contracts with AMD, Intel’s biggest rival and the world’s No. 2 CPU maker, and Chinese telecom giant Huawei, which is subject to U.S. sanctions. “Samsung is expected to benefit from TSMC’s tight production schedule,” said Kim Yang-jae, analyst at KTB Investment & Securities. “More chip orders are likely to come from Intel and Qualcomm next year.”

 

[Dan_D]

I wouldn't at all be surprised if we start seeing Intel outsource production of newer higher end chips to Samsung or even TSMC until it can get on track with its own 10nm and 7nm processes. Honestly, they should have done this a long time ago.

 

[Peter_Brosdahl]

I think that they'll be alright but man things seem a bit stressful at Intel. Between this, Chris Hook and Heather Lennon leaving, and Dell calling them out for over fiscal woes related to CPU shortages, it's not exactly the best finish to the year.

 

[AntiQuark]

I wonder which will clock better

 

[Uvilla]

(About Dell)Well, I was going to say why not offer more AMD instead... But they do offer plenty, and unlike in the past not just gimpped ****, but nice stuff! Color me surprised. AMD might just grow to a big company this time.

 

[JosiahBradley]

Intel has reportedly hired Samsung to help curb its chip supply woes. According to a report by Maeil Business News Korea, the South Korean electronics giant has won orders to produce Intel's desktop processors, which are traditionally produced in-house. The unprecedented decision provides insight into just how bad the shortage really is.

Market observers say Samsung Electronics has emerged as a strong partner for Intel as TSMC maintains supply contracts with AMD, Intel’s biggest rival and the world’s No. 2 CPU maker, and Chinese telecom giant Huawei, which is subject to U.S. sanctions. “Samsung is expected to benefit from TSMC’s tight production schedule,” said Kim Yang-jae, analyst at KTB Investment & Securities. “More chip orders are likely to come from Intel and Qualcomm next year.”

This was responded to by Intel as false. Move along.

 

[Grog6]

I wonder which will clock better

I would bet that if Samsung can get a handle on the 7nm stiff, theirs will.

We might see 5GHz all core processors on air.