Intel revealed that they might not make its own chipsets, Intel’s next-generation 7nm chips delayed until 2022

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Recently Intel revealed that their next generation chipsets might be manufactured by third party manufacturers.

For Intel, this would be a major setback but still they are going for this because they have to. All these years Intel dominated the market, even now it has a good market share but it might not be in the future.

Why Intel failed?

Now the reason for this is simple and obvious because Intel doesn’t have any other option. AMD launched their 7nm chips quite a while ago whereas Intel is still stuck on 14nm and their 10nm desktop CPU’s are yet to come.

7nm process is a big step compared to 14nm because 7nm CPU’s are 35% faster and consume 65% less power. (If you don’t know) nm is the size of the transistor i.e. length of the channel in the transistor.

The main reason why Intel is far behind compared to it’s rivals is due to its manufacturing delays.

Intel’s business model is different from its rivals — AMD and TSMC.

Intel designs CPU’s and manufactures them whereas AMD designs CPU’s and TSMC manufactures these chips. In 2017, TSMC started manufacturing chipsets with 7nm process and Intel failed to do that in time and still it stuck on 14nm.

Report says that Intel’s 10nm chips are delayed till next year and this is not the first time, it has been delayed since last 2 years. Guess what, their 7nm chips are delayed till at least 2022. By that time i.e. 2022+, we may even see 3nm chips in the market.

If this is the case then Intel’s market will plummet. When they announced this they lost $42 Billion on that day. It’s rivals AMD and TSMC’s stock went up by $33.8 Billion and $11.5 Billion respectively.

Why Intel chose to use third party manufacturers?

There are mainly 3 reasons:

1. Intel — As we know they failed to produce next-generation processors since a long time, which left them 2 generations back compared to it’s competitors.
2. AMD — AMD is the only competitor for Intel in laptop and desktop processors. In manufacturing, TSMC is Intel’s rival. If Intel doesn’t catch up with the competition, it looses it’s market share to these companies which might be hard to recover in the future.
3. ARM — Recently Apple announced that they are moving away from Intel processors and they have a good reason for that.
4. Apple’s next-gen Macbooks will be powered by ARM processors, which are based on RISC architecture.
5. Other manufacturers like Qualcomm are trying to enter this business with their ARM based processors.
6. In short, RISC based processors consume less energy and produce less heat. So everyone believes that the future of computers will be ARM.

Now, with these Intel cannot wait years long to solve their defects in their manufacturing process. And that is what they are trying to do. If Intel wants to survive then they have to do this