Intel Books Two 3 nm Processor Orders at TSMC Manufacturing Facilities

[Why_Me]

Why tsmc would agree to this is simply economics. More demand and a rich customer causes prices to rise for other customers of tsmc. That is if new customers is willing to pay higher prices, that causes other customers to also have to pay higher prices or risk losing out their spot. Tsmc is the best manufacturer right now and if they want to keep that position, they will have to continue their spending war. Higher profits helps this out.
Intel on the other hand has no chance of amortizing 100 billion dollars on fabs and recouping the spending over 3 years. They are more and more likely to go fabless and commit r and d to architecture and software because that is the only way they can get back to tick tock(something the new ceo has committed too). R and d for process and keeping their fabs up to date is too expensive. Unless revenue grows exponentially soon, they won't be able to do it


On top of this, AMD gets crippled if intel outsources manufacturing to TSMC. I think TSMC will have no problem taking intels money over AMD because they can pay better than anyone and help raise wafer prices. Because intel does not make consoles and intel is already charging 300 to 500 dollar for what are small chips, they can pay high pricing that can even intimidate even Apple. AMD is making TSMC 9 percent of its revenue while Apple is making 25 percent of TSMC revenue. Do you not think Intel could be a similar size to Apple when Nvidia is barely making anything with tsmc this year and is still a 5 to 6 percent revenue share customer? On top of this, intel can pay way higher prices considering the savings on not buying new fabs, would be 10s of billions of dollars.

Intel is expanding their fabrication from Arizona to New Mexico to Ireland and Germany.

 

[Vya Domus]

Well, that's a unique theory. You can be assured that this is indeed, about money.


"it's not about the money it's about the money"

Intel has money and yet here we are with companies like AMD, Nvidia and in some sense even Apple becoming more relevant with each passing day in markets where no one else even existed besides Intel themselves at one point in time.

Unfortunately for Intel, and for many others, money doesn't always get you good management.

I think TSMC will have no problem taking intels money over AMD because they can pay better than anyone and help raise wafer prices.

they can pay high pricing that can even intimidate even Apple.

That's clearly nonsensical because Apple has way more capital than both of these companies combined yet TSMC has no problem getting orders from anyone else.

 

[AsRock]

never heard of psp, RIP company overreach and freedom LOL

EDIT:

Another sad news for you AMD fanboys. AMD just lost market share in the latest Steam Survey. Last month I warned people in the AMD subreddit that Tiger Lake-H launch will have an impact by next month and here we are https://www.techspot.com/news/90282...intel-latest-steam-survey.html#commentsOffset https://store.steampowered.com/hwsurvey/Steam-Hardware-Software-Survey-Welcome-to-Steam

Yeah guess what this AMD user did ?, skipped it which makes me wounder how many more did too.

 

[tajoh111]

Intel has money and yet here we are with companies like AMD, Nvidia and in some sense even Apple becoming more relevant with each passing day in markets where no one else even existed besides Intel themselves at one point in time.

Unfortunately for Intel, and for many others, money doesn't always get you good management.





That's clearly nonsensical because Apple has way more capital than both of these companies combined yet TSMC has no problem getting orders from anyone else.

The thing is Apple has no competition and the rest of the companies making products with TSMC don't have the margins or volume to compete with Apple. Intel does. Qualcomm, Nvidia, Mediatek and AMD can't afford to spend, Apple's quarterly spend of 3 billion at TSMC(TSMC yearly revenue is 48 billion dollars. Apple is a quarter of that). Intel can and it makes even more sense than Apple to spend that much. Intel revenue is nearly 20 billion quarterly. Spending 3 billion dollars when their gross margins are in the 55-62% range is not a big deal.

Yes Apple can outspend Intel but doing so will only get them in a fight where they beat up their margins without gaining a competitive advantage. That is, they lower their margins just to keep Intel out of the foundry. TSMC would likely want these two giants to fight with deep pockets as it would simply increase the amount they could charge per wafer. Intel could afford to spend as the benefits gains are tremendous. Much more than Apple who could likely switch to Samsung without missing out on much because of Apples lock in model and being hardly performance keeping people on Apple anymore.

Intel on the other hand gets to save 10's of billions on foundry spending, allocated engineering resources to architecture and software, stifle AMD and Nvidia legally, and gain access to the best foundry in the world.

 

[Bwaze]

Intel would probably profit even by just buying TSMC capacity and throwing the silicon into the landfill.

 

[dicktracy]

View attachment 206485

and none of that has anything to do with 3nm. Reports are saying that Apple and Intel will gobble up most of TSMC's 3nm.

 

[TheoneandonlyMrK]

Foundry business runs on trust.

Does it balls, It runs on pretty solid , legally robust contract's, including partners.
And they are not brushed aside easy by anyone.
As I said previously, Intel may get there part's, but so will AMD , Qualcomm, apple etc.
Soo it's all gravy, more competitive landscape, more competitive offerings.

 

[Operandi]

That AMD's CPU market share is limited by manufacturing capacity.
Even for DIY market, 5000 series are in stock and at MSRP or below for months. (as if that was an indicator, anyhow)

The only thing you can say with any certainty is that is not possible to say for sure unless AMD and Intel share all their numbers which isn't likely to happen. In regards to MSRP you can see the same for Intel; I don't follow stock and numbers and prices closely at all but a quick search shows the 11700K is also way below MSRP. Thats just the DIY market though which isn't a meaningful portion of the market at all, but AMD is still selling a smaller cheaper to manufacture CPU the 5800x for more money vs. Intel's more costly to manufacture cheaper equivalent the 11700K.