Intel is in talks to outsource some of its chip manufacturing to IFS Technology and Samsung Foundry, marking a major strategic shift for the tech giant. Intel had focused on in-house manufacturing to maintain control over product roadmaps and intellectual property.
Intel could outsource chip manufacturing to IFS and Samsung
IFS and Samsung will manufacture some of Intel’s CPU and GPU designs using advanced 3nm and 5nm manufacturing processes. Intel will retain core manufacturing capabilities for its popular products, but will partner with IFS and Samsung to increase overall capacity. The goal is to increase its competitiveness against rivals like AMD, which has outsourced manufacturing to TSMC.
A deal with different chipmakers could help Intel address issues with delays in its own technologies. IFS and Samsung have invested billions of dollars to rapidly scale production and now have significant experience manufacturing designs for third-party customers.
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The deal would give Intel access to better architectures without having to make major capital expenditures to upgrade its facilities on its own.
However, intellectual property protection and design customization challenges pose several hurdles to the deal. Intel must ensure that its most advanced technologies and future product plans remain secret.
Manufacturing partners will also need to develop a level of flexibility and support similar to Intel’s factories.
