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TSMC will make a lot of cash on Intel's back

by on08 September 2023

Goldman Sachs analysts claim

TSMC will make a lot of dosh out of Intel between 2024-25 according to Goldman Sachs Securities analysts.

Intel is expecting to ship significant numbers of its upcoming processor generations, and will need TSMC to deliver some of the chiplets and chipsets to support these plans.

Goldman estimates that TSMC will secure $5.6 billion worth of Intel semiconductor component orders in 2024, followed by an even better year with $9.7 billion in 2025.

Intel was stuck between 14nm and 10nm fabrication processes for years, and though it has made strides recently, it is still behind  in terms of manufacturing prowess. Due to this differential, engineers within Intel’s design department hope to continue with their close TSMC partnership.

A Goldman analyst speaking to the Commercial Times said that virtually all high-volume products from Intel will be chiplet-based, which the company dubs tiles.

"Currently, some processor chiplets are made by Intel foundries, notably the CPU cores. Other chiplets, like GPU tiles, will be made by TSMC, which is also the chosen foundry for Intel’s discrete desktop GPUs. With a greater proportion of Intel’s output using the multi-chiplet design and TSMC a favored supplier of some of the chiplets, this is obviously good news for the Taiwanese chip manufacturer," he said.

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