One of the issues pending TSMC is Intel's Plans for 'Accelerated' Chip Production

    One of the issues pending TSMC is Intel's Plans for 'Accelerated' Chip Production   Intel aims to regain Chip Manufacturing leadership by 2025.   Over the past few years, Intel INTC (NASDAQ) $53,89 +0,34 (+%0,63) has lagged far behind Taiwan Semiconductor Manufacturing Company  2330 (TPE) NT$591,00 -5,00 (-%0,84) and Samsung in the "process race" due to disruptions in chip manufacturing. Chip delays due to Intel's R&D and manufacturing issues have caused massive shortages of 14nm, 10nm and 7nm nodes, while PC and server CPUs from Advanced Micro Devices (NASDAQ:AMD) rival, which outsources chip manufacturing to TSMC's superior foundries. enabled it to expand its market share. While last year many analysts thought Intel could not close the gap, earlier this year new CEO Pat Gelsinger busted those rumors and doubled the chipmaker's first-party foundries with new investments.. At the "Intel Accelerated" event on July 26, Gelsinger announced a new technological roadmap, adding that Intel could catch up with TSMC and Samsung by 2024 and then regain its lead in 2025.

What are Intel's plans to catch up with TSMC?

The company will use 3 main strategies to catch up.

• The first is to allocate most of its capital expenditure to expanding its local foundries and purchasing ASML's (NASDAQ:ASML) high-end EUV (extreme ultraviolet) machinery, as well as raising the capital expenditure required to manufacture the world's smallest chips to $20 billion.

 

• Second, Intel plans to fabricate and rename its upcoming nodes to better reflect transistor density and overall performance compared to TSMC's nodes. For example, 4 nm instead of the old 7 nm and 2 nm instead of the old 5 nm.

 

• Finally, Intel is considering buying smaller foundries to accelerate its expansion, or even AMD is reportedly considering acquiring former chipmaking unit GlobalFoundries, the world's fourth largest chip foundry.

 

One of the issues pending TSMC is Intel's Plans for 'Accelerated' Chip Production

 

In contrast, what does TSMC plan to stay ahead of Intel?

TMSC claims that their chips are denser, consume less power and run faster. The Company will likely spend more than Intel to maintain its lead. It also recently made a potential breakthrough in the development of 1nm chips. Intel will be able to receive some support for its investments from government subsidies in the US and Europe. It was TMSC's new facility investments in Arizona that secured US government subsidies, which Gelsinger strongly protested and opposed. TMSC will also have the support of the Taiwanese government. Everyone is waiting for the results of the wars of these two giants.  

Source: The Motley Fool

 

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