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Intel To Tap TSMC To Make New Chip Using Enhanced 7-Nanometer Process Says Sources: Report

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  • The chip called “DG2”, will be made on a new chipmaking process at TSMC that has not yet been formally named but is an enhanced version of its 7-nanometer process
  • With its graphics chips, Intel is looking to tap into the booming PC gaming market

As per a report by Reuters, Intel Corp plans to tap Taiwan Semiconductor Manufacturing Co to make a second generation discrete graphics chip for personal computers two sources familiar with the matter told Reuters. The report added that the chip called “DG2”, will be made on a new chipmaking process at TSMC that has not yet been formally named but is an enhanced version of its 7-nanometer process, the two people familiar the matter said.

The report added that Intel has lost its manufacturing edge in recent years. It is now debating whether to outsource some of it flagship central processor unit chips, or CPUs which are slated for release in 2023. The report added that Third Point LLC last month sent Intel’s board a letter asking it to consider whether to keep its chip design and manufacturing operations under one roof.

DG2 chip is expected to be released late this year or in early 2022

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The report added that with its graphics chips, Intel is looking to tap into the booming PC gaming market. The sources added that its DG2 chip is expected to be released late this year or in early 2022 and compete with Nvidia and AMD gaming chips that cost between $400 and $600. The people also said that the chip manufacturing technology for the DG2 is expected to be more advanced than the Samsung Electronics Co Ltd 8-nanometer process used in Nvidia’s most recent round of graphics chips released in the fall. They added that it will also have a leg up on the Advanced Micro Devices graphics chips made on TSMC’s 7-nanometer process.

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