Intel seen outsourcing some 14nm chipset production to TSMC

The delay of 10nm and the cancellation of the 14nm Fab 42 from a couple of years ago is resulting in a shortage of 14nm capacity at Intel. Demand for 14nm products is higher than what Intel can manufacture, and that's resulting in shortages of some processors and other chips.

As a result, word is going around that the chip giant is planning to outsource some of its production to TSMC. DigiTimes writes Intel intends to use the Taiwanese foundry to manufacture some of its chipsets, including the entry-level H310 as well as several other 300-series chipsets. The report claims there's a supply shortfall of as much as 50 percent!

Intel has seen its overall 14nm chip supply fall short of demand by as much as 50%, the sources said. Outsourcing has become the only and appropriate choice for Intel since the company is unlikely to build additional 14nm process capacity, the sources noted.

TSMC is already a contract manufacturer of Intel for SoFIA-series handset SoC chips and FPGA products, and makes Intel's baseband chips for use in the iPhone, the sources said.

Sources at motherboard makers believe the tight supply of Intel's 14nm chipsets will ease towards the end of this year.