Intel is facing a shortage in 14nm chip production due to ongoing “performance issues.” To support the growing demand for 14nm chips, the company plans to outsource their production to TSMC – Apple.
As reported by DigiTimes, Intel appears to be struggling to keep up with 14nm chip production as the California-based tech giant prioritizes high-performance products such as processors used in servers and chipsets. Production of 14nm chips is currently at a 50% capacity shortfall. Outsourcing their production is the company’s only option to meet demand, as it has no capacity to make additional 14nm chips. This inability to meet demand has led to increased pricing for some CPUs in the market.
Intel has already collaborated with TSMC for SoC and FPGA products of the SoFIA series. TSMC also manufactures Intel chips used in the iPhone. With outsourcing, the company's main problems for offering a 14nm chipset will cease to exist until the end of 2018.
Intel has repeatedly postponed the release of the 10nm Cannon Lake Processor announced in 2016. It is the main reason why the company faces limited capability for manufacturing 14nm chips.
According to the manufacturer's update, the release of the 10nm chips has been postponed to the fourth quarter of 2019.
