Intel is investing $1 Billion In 14nm to meet demand

According to wccftech.com [LINK] Intel 10nm is on track for HVM 2019 and they are investing an additional $1 billion in 14nm production ramp.

 

"We are clearly entering into uncharted territory as far as the x86 market goes, with demand at an all-time high, Intel struggling to get its 10nm process out and AMD as competitive as ever. Intel’s 14nm process has been seeing incredible demand and the company will be putting in an additional $1 billion to ramp production up. One key thing to note here is that hardware for 14nm and 10nm fabrication is about the same – which essentially means that there is very little opportunity cost for chasing 14nm production at this time. Simply put, this update was great news for Intel shareholders."

To address this challenge Intel will:

• Invest a record $15 billion in capital expenditures in 2018, up approximately $1 billion from the beginning of the year. We’re putting that $1 billion into our 14nm manufacturing sites in Oregon, Arizona, Ireland and Israel. This capital along with other efficiencies is increasing our supply to respond to your increased demand.
• Improve yields for 10nm and expect volume production in 2019.

Intel to outsource 14nm production due to tight supply

[DIGITIMES, LINK] Intel is encountering tight 14nm process production capacity in-house, and is looking to outsource part of its 14nm chipset production to Taiwan Semiconductor Manufacturing Company (TSMC), according to industry sources.

Intel intends to give priority to its high-margin products mainly server-use processors and chipsets amid its tight 14nm process capacity, and therefore plans to outsource the production of its entry-level H310 and several other 300 series chipsets to TSMC, the sources indicated.

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.

 

The Foundries are aiming at AI chip orders in China with 10/14nm advanced process technologies

[Cage Chao, Taipei; Jessie Shen, DIGITIMES] Semiconductor Manufacturing International (SMIC), and the China-based production subsidiaries of both Globalfoundries and United Microelectronics (UMC) are looking to expand their advanced node offerings for the China market to include 10/14nm as they vie for orders from the local AI chip supply chain, according to industry sources.

Taiwan Semiconductor Manufacturing Company's (TSMC) newly-established Nanjing fab, which has entered directly 16nm FinFET chip production since April 2018, has enjoyed robust orders from China-based AI chip developers eager to accelerate the adoption of advanced process technologies, the sources indicated.

China-based foundries including SMIC, and Globalfoundries' and UMC's production subsidiaries locally have informed their customers they will be capable of providing 10/14nm node manufacturing starting the second half of 2018 or 2019, the sources disclosed.These foundries are looking to catch up with TSMC in China's market for advanced process technologies, the sources said.

Source: Digi Times LINK