Borrowing chickens and laying eggs? TSMC sets up a 3nm dedicated line for Intel

Intel's cooperation with TSMC has more or less been confirmed, although it is a bit ironic but very real.

According to Digitimes, sources say TSMC plans to produce 3nm chips for Intel at its new production site in northern Taiwan.

The production base is located in Baoshan District, Hsinchu City. The source said Intel wants TSMC to use a 3-nanometer manufacturing process to produce PARTS for its CPUs and GPUs.

In a recent earnings call, TSMC CEO Wei Zhejia said that TSMC's 3nm process development progress is in line with expectations and will be mass-produced in the second half of the year. According to last year's news, the mass production of TSMC's 3nm process will be carried out in July 2022.

Some analysts pointed out that because the product performance of competitors such as NVIDIA and AMD has exceeded intel's products, the latter's market share has declined. Intel urgently needs to work with TSMC to close the technology gap with competitors and regain market share that has been lost.

Last month, Intel CEO Pat Gelsinger visited Taiwan for talks with TSMC. Although the two sides did not announce the results of the negotiations, people familiar with the matter said that Intel insisted that TSMC allocate a separate production line for it.

In fact, in August last year, it was reported that Intel was one step ahead of Apple and took the lead in using TSMC's most advanced 3-nanometer process to produce graphics processors and server processors. The news said at the time that mass production would take place in July 2022, which also meant that Intel became the first customer of TSMC's 3nm process.

According to the latest data, TSMC expects sales of $16.6 billion (about 105.6 billion yuan) to $17.2 billion (about 109.4 billion yuan) in the first quarter of this year. Wei Zhejia pointed out that TSMC will usher in growth this year, and the long-term gross profit margin is expected to be 53% or higher.

Intel announced that it will release its fourth quarter 2021 financial report on January 26 (January 27, Beijing time). After the release of the earnings report, a earnings conference call was held, which was scheduled to be at 5 p.m. Eastern Time on January 26 (6 a.m. Beijing time on January 27).

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