Intel sends about 30% of its chip production to TSMC instead of making everything itself. This marks a big change from their earlier plans to stop using outside chip makers completely. Intel sees this outside help as something they want to keep doing forever. The company might eventually drop that number to around 15-20%.
John Pitzer from Intel talked with Morgan Stanley recently about this change. He explained that Intel sees TSMC as a valuable partner rather than just a temporary helper. Having both companies make chips creates a healthy rivalry between TSMC and Intel Foundry. The competition pushes both to do better work and develop better technology.
The company has new temporary leaders, Dave Zinsner and Michelle Johnston Holthaus, who can make more decisions than before. They continue to focus on building a top-notch chip design business and a world-class manufacturing operation simultaneously. They believe making great products comes first, and perfecting the factory side follows.
Intel realizes that making advanced chips involves incredibly complex steps. Their practical approach uses TSMC when it makes sense to bring products to customers faster. They still want to make most chips themselves, but they balance this goal against staying competitive. This flexible strategy helps Intel navigate through its big manufacturing changes more successfully.
John Pitzer from Intel talked with Morgan Stanley recently about this change. He explained that Intel sees TSMC as a valuable partner rather than just a temporary helper. Having both companies make chips creates a healthy rivalry between TSMC and Intel Foundry. The competition pushes both to do better work and develop better technology.
The company has new temporary leaders, Dave Zinsner and Michelle Johnston Holthaus, who can make more decisions than before. They continue to focus on building a top-notch chip design business and a world-class manufacturing operation simultaneously. They believe making great products comes first, and perfecting the factory side follows.
Intel realizes that making advanced chips involves incredibly complex steps. Their practical approach uses TSMC when it makes sense to bring products to customers faster. They still want to make most chips themselves, but they balance this goal against staying competitive. This flexible strategy helps Intel navigate through its big manufacturing changes more successfully.
