Intel and TSMC: Friends or foes?
November 28, 2013 Leave a comment
Intel and TSMC: Friends or foes?
Tu Chih-hao and Staff Reporter
2013-11-28
Taiwan Semiconductor Manufacturing Company’s chairman Morris Chang may see Intel and Samsung as his company’s main future competitors. Intel, which announced last week it intends to invest in the wafer manufacturing industry, still purchases chips it uses for other products than CPUs from TSMC, which produces the SoFIA chips it will launch in 2014.Intel and TSMC intended to cooperate on specific projects in 2009. Although both companies eventually failed to ally, Intel managed to acquire Infineon’s mobile phone chip department, and the 3G and 4G chips it sells were also produced by TSMC. Intel also had TSMC manufacture several of its products in the years that followed.
Intel has thus been one of TSMC’s most important clients. However, it is undeniable that Intel has been eyeing the chip manufacturing market for some time, as can be seen from the fact that it grabbed Altera from TSMC, formerly TSMC’s client.
On the other hand, Intel has listed a few conditions before it completely throws itself into the chip manufacturing industry. First, it will provide its clients the IA framework processor; second, it will provide customized ASIC manufacturing services. Intel will only start to receive orders under the condition that all these factors do not impinge upon the advantages of its own other products.
It seems clear that Intel aims to manufacture for electronic giants Apple and Sony, who use ASIC chips, instead of other Qualcomm or MediaTek. Media reports indicate that global supplier of integrated circuits AMD has obtained orders to manufacture chips for Microsoft’s XBox One and Sony’s PS4 by providing customized ASIC services. It is speculated that Intel is eyeing these kinds of orders.
It is uncertain whether TSMC will see Intel as a friend or foe in the coming two to three years. TSMC’s priority would be to work out a proper relation with Intel, so that this partner does not become a rival.
About bambooinnovator
Bamboo Innovator 