Intel makes surprise revelation: it won’t produce majority of silicon for new gaming CPUs in-house. The upcoming processor lineup is poised to be produced by external parties, such as Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung, with Intel’s foundry arm taking over only the packaging aspect. This could signal an unprecedented reversal by the corporation, one that would reverse its earlier decision to manufacture desktop x86 CPUs in-house.
Intel seeks to turn around its fortunes following a dismal fourth-quarter financial performance. Intel’s forthcoming Arrow Lake CPUs are expected to hit shelves by year-end 2024, poised to challenge AMD’s Ryzen 9000X3D processors in a high-stakes battle for supremacy in the gaming CPU market.
The newly launched Intel Arrow Lake desktop CPU lineup was initially expected to be manufactured in-house using Intel’s 2nm chip-making process, known as 20A, but Intel has now announced it will “redirect engineering resources from Intel 20A ahead of schedule” and instead focus on the new Intel 18A process. According to Intel, the 18A manufacturing process has shown early promise, as it is now “functionally booting” using established techniques. The company describes this milestone as a significant step forward, noting that the method is “proceeding smoothly and delivering results.” Moreover, Intel reaffirmed its commitment to launching 18A in 2025.
Despite Intel’s rosy spin, the discontinuation of 20A represents a significant shift away from their traditional approach, touted as one of the benefits of their early success on 18A. However, it’s worth noting that 18A was already slated for launch in 2025, and it’s hard to sugarcoat the massive change Intel is facing with its decision not to produce silicon for its future flagship desktop CPUs.
Sources indicate that several Intel Foundry prospects are privately expressing concerns about the pace of Intel’s 18A development program, which appears to be lagging behind their expectations. Multiple evaluations of Broadcom’s methodology have yielded disappointing results, a trend mirrored in the latest Reuters report. “After conducting a thorough analysis of the outcomes by their engineers and executives,” states the report, “Broadcom ultimately determined that transitioning the manufacturing process to high-volume production was no longer a viable option.”
At the IFA tech tradeshow, Intel unveiled the details of its upcoming Core Extremely 200V processor family, offering a first glimpse into the company’s latest CPU architecture. Discover the latest Intel Lunar Lake details for insights into their innovative chip designed specifically for slim and lightweight gaming laptops, as well as handheld devices.
