World News – US – Intel still can’t say if it will make all of its own 7nm processors


Intel just wrapped up its Q3 2020 earnings call, and the company reports some revenue drops, namely a 10% loss in data center revenue Still, these are the comments from Intel CEO Bob Swan regarding his 7nm process node that piqued our interests: It seems Intel is still undecided on whether to double its own 7nm node or use a different one

“As we think about 2023 and beyond,” CEO Bob Swan says in the call (via Seeking Alpha), “we are looking at the products needed at that time and we are evaluating our process against other third party processes And the fundamental criteria, as you can imagine, are quite simple at the macro level: predictability of schedule and schedule, product performance and economy with the supply chain – our ability to control the supply chain. best sourcing

« So the criteria are relatively straightforward and we are evaluating each of these types at the release of 2020 and early 2021, because this is the time when we will have to decide whether or not to buy more 7 nanometer equipment. or if a third-party foundry would add this capability « 

This is not the first time that Intel has raised the possibility of bringing in an external factory to manufacture some of its chips. Earlier this year it reported that a failure of its process node 7 nm would delay him for at least six months and that he was considering hiring a third-party foundry to help alleviate the constraints of the delay

This 7nm process error has since been corrected, Swan says on the call The company says it has made « wonderful progress » with its 7nm process since, but would still explore other options alongside it

The company has reportedly already placed an order with TSMC for 6nm chips This was a one-time deal, although Swan has since been unable to offer firm guarantees on what it would look like. an external chip supply agreement It would appear that Intel is hiring from a third party for individual segments of its product line on a case-by-case basis, but has failed to rule out an ‘all or nothing’ deal, even though such an extreme move seems unlikely. right now

« About your last question, John, is it all or nothing? » Swan said in response to a question from analyst John Pitzer regarding the mix of external foundry products « No, I would say, we are looking at the server or the client We are looking at the big core, the small core We are looking at some segments of the stack within the product line We are therefore looking at a variety of different parameters in terms of the composition of the company

« And like I said in my prepared remarks, it’s probably not an all or nothing; it’s probably a mix in terms of the best path to make sure we have a predictable rate of products from leadership for 2023 and 2024 as we think will be in 2020, 2021 and 2022 And we’ll learn a lot more like we’ve done in the last 90 days in the next 90 days and I think I’m in a good enough position to exhibit our decision within the January deadline »

Intel rivals long ago ditched in-house manufacturing in favor of outside foundries AMD operated its own manufacturing arm, which was later transformed into GlobalFoundries, but has since moved to TSMC to manufacture its 7nm process

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Nvidia never operated its own factories, choosing TSMC and Samsung to produce its existing lines of graphics cards

Yet Intel may not be as keen on outsourcing as others.The company has long been a global leader in chipmaking and undoubtedly remains one of the leading companies in the industry, with factories located in the United States, Ireland, Israel and China There may also be other reasons that it may wish to maintain its manufacturing capacity: In a recent article in its newsroom, the company touted the virtues of being one of the last semiconductor companies to make chips on the market. American soil

In the words of Jeff Rittener, head of Intel’s government affairs office, « eighty percent of the world’s semiconductor manufacturing capacity is now found in Asia Intel and the entire US industry. semiconductor industry faces fierce competition in the global semiconductor market The US risks falling behind in an industry it once dominated and on which its economy and national security depend « 

In fully independent news, Intel recently sold its SSD business to South Korean company SK Hynix, including an Intel semiconductor manufacturing plant in Dalian, China

There is no ‘Silicon Valley’ where Jacob grew up, but part of his homeland is known as ‘The Valleys’ and therefore can be easily mistaken for a place happening in tech world From there he graduated to smash things professionally then write about it for money in the city of Bath, UK

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Global News – US – Intel Still Cannot Say If It Will Make Its Own 7nm Processors



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