IBM to use 7nm TSMC process for future Power CPUs

With GlobalFoundries out of the cutting-edge process development race, IBM is seen turning to TSMC for the production of its future Power server processors. Nikkei Asian Review claims TSMC is close to securing the order.

Intel supplies 96% of the chips used in data center servers, according to Trendforce analyst Liu Chia-hao. IBM is an outlier in the sector: Rather than use Intel's chips, it designs its own and has been using No. 2 contract chipmaker Globalfoundries to produce them. Now, IBM is looking to switch to TSMC, which offers the only 7-nanometer technology on the market.

TSMC is the largest contract foundry in the world. IBM previously relied on GlobalFoundries, which took over IBM's loss-making fabs. IBM paid GlobalFoundries $1.5 billion to take these fabs off its hands, but earlier this year GlobalFoundries halted the development of its 7nm node. Other major players include Intel, which is struggling to bring its 10nm process to market, and Samsung, which hasn't seen a lot of success in securing orders from third parties.