Monday, June 17th 2019
Intel Turns to Samsung in Order to Resolve CPU Shortage on the 14 nm Process
Intel has seemingly partnered with Samsung, one of the largest manufacturers of Integrated Circuits, in order to help reduce the CPU shortage currently affecting the PC market. It is the first time ever that Intel turned to Samsung for it's CPU manufacturing given that, historically, Intel's Client Computing Group (CCG) has always relied on Intel's internal fab to manufacture all of its components. But as resources in those fabs became constrained, Intel CCG started looking at other resources, such as TSMC, to manufacture the chipsets used in Intel-based motherboards.
In a report prepared by Sedialy, a South Korean news media, Intel turned to Samsung specifically to meet demand on its 14 nm products. This unexpected move came after negotiations which, if you believe the rumors before the news, were in progress for quite some time already. Samsung has formally agreed to manufacture Intel's CPUs of the microarchitecture code-named 'Rocket Lake', which will serve as processors for mini PCs, planned to be released in 2021.According to the source, Samsung will begin mass production of 14 nm Intel CPUs in the fourth quarter of 2020, which means that Intel still will not feel any relief from the off-loaded manufacturing, and will have to put up with it for a while longer. Also, according to the source, Intel's 14 nm manufacturing shortage has been worse than reported, which this partnership with Samsung further hints towards.
Although Intel laid out plans to build a new factory, it will take years to finish it given it is a huge investment which pays off in the long run. There are possibly many reasons why Intel went with Samsung for its CPU manufacturing, with number one being the trade war between China and the US. While TSMC is available, it is also connected with AMD as it manufactures most of its silicon products. Another thing to consider is that Samsung is very much looking forward to accommodating Intel's CPU manufacturing, as its own thriving memory business is tied closely to Intel CPUs as far as the overall market is concerned.
In a report prepared by Sedialy, a South Korean news media, Intel turned to Samsung specifically to meet demand on its 14 nm products. This unexpected move came after negotiations which, if you believe the rumors before the news, were in progress for quite some time already. Samsung has formally agreed to manufacture Intel's CPUs of the microarchitecture code-named 'Rocket Lake', which will serve as processors for mini PCs, planned to be released in 2021.According to the source, Samsung will begin mass production of 14 nm Intel CPUs in the fourth quarter of 2020, which means that Intel still will not feel any relief from the off-loaded manufacturing, and will have to put up with it for a while longer. Also, according to the source, Intel's 14 nm manufacturing shortage has been worse than reported, which this partnership with Samsung further hints towards.
Although Intel laid out plans to build a new factory, it will take years to finish it given it is a huge investment which pays off in the long run. There are possibly many reasons why Intel went with Samsung for its CPU manufacturing, with number one being the trade war between China and the US. While TSMC is available, it is also connected with AMD as it manufactures most of its silicon products. Another thing to consider is that Samsung is very much looking forward to accommodating Intel's CPU manufacturing, as its own thriving memory business is tied closely to Intel CPUs as far as the overall market is concerned.