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Samsung reportedly gets CPU orders from Intel amid supply shortfall

Some Intel CPUs may soon have Samsung Inside.

Samsung reportedly gets CPU orders from Intel amid supply shortfall

Samsung reportedly gets CPU orders from Intel amid supply shortfall

Update - Intel has confirmed that they are not using 3rd party Foundries to create CPUs. Below is a comment from an Intel representative to WCCFTech
 

The letter from last week says we will increase our use of foundry so we can build more CPUs at Intel.
The news reports about our use of third party foundries for CPUs are inaccurate.

 
Last week, Intel confirmed that CPU shipments would be delayed due to the company's inability to manufacture enough processors, stemming from the increasing die sizes of the company's latest processors and increasing demand in the enterprise market. 

Intel has already offloaded some of their manufacturing to 3rd party foundries, moving chipset creation to the likes of TSMC and Samsung. Now, it looks like some of Intel's processor manufacturing is moving to Samsung's foundries, at least according to Pulse News in Korea.  

With AMD pushing higher core counts, Intel has been forced to do the same, increasing the size of its processors. This decreases the number of processors that Intel can manufacture per wafer, making Intel's existing supply issues worse. This competition has also forced Intel to lower its prices for high-end processors, which again has increased demand for Intel's larger chips, all of which places tighter strain on Intel's manufacturing resources. 

Pulse News has stated that this is the first time that Intel has had to turn to a 3rd party foundry to create its mainstay CPUs. These Samsung manufactured Intel processors are likely to all be low-end models, likely for their Atom, Pentium or Celeron product families. This manufacturing shift would allow Intel to focus its resources on its high-performance and high-margin products.

Right now, it looks like Intel will be unable to address its supply issues anytime soon. Given this news, it seems like Intel's manufacturing shortfalls are entering desperate levels. 
   

Samsung reportedly gets CPU orders from Intel amid supply shortfall  

You can join the discussion on Intel moving some CPU manufacturing to Samsung's Foundries on the OC3D Forums

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Most Recent Comments

28-11-2019, 07:21:56

Avet
I can't believe that both Intel and AMD misjudged demand so badly. Wendell mentioned that even AMD has to order chips at least 3 months in advance from TSMC.Quote

28-11-2019, 08:13:01

WYP
Quote:
Originally Posted by Avet View Post
I can't believe that both Intel and AMD misjudged demand so badly. Wendell mentioned that even AMD has to order chips at least 3 months in advance from TSMC.
You need to remember that it takes AGES to build a new foundry and to make new fabs operational. Predicting demand isn't easy.

As far as the "3 months in advance" thing goes, that's pretty standard for a new node with wide adoption.

The problem on Intel's side is their inability to keep up with Moore's Law. They need to go bigger and that means lower yields and fewer chips per wafer. Lowering X299 CPU prices only makes matters worse. More people will be buying the bigger chips...

Predicting the future is hard, and I'm sure AMD couldn't have predicted, or bet on, Intel messing up this badly. Intel has dropped the ball, HARD.Quote

28-11-2019, 09:59:18

demonking
Quote:
increasing demand in the enterprise market
Erm what? they must have forecast to have increased sales YOY or at least had some plans to increase sales surely, as they always do and AMD has been chipping away at their enterprise market by significant amounts (in comparison to every other year, ever)
So they are stating that they can't keep up with less demand than they planned for? Or had they anticipated AMD would take more market than they have?Quote

28-11-2019, 10:03:24

tgrech
I think they're implying that market growth is so high with datacentres/cloud that even with a %age marketshare loss to AMD they're still growing in absolutely units sold terms, seems like both companies are operating near capacity in this sphere with the growth it's seen recently. Ofc Intel could have catered to it had they not had to play musical chairs with their fabs to make up for 10nm's delays.Quote
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