Intel, long the world leader in chip manufacturing technology, has lost its manufacturing lead in recent years and is now considering whether to outsource some of its central processor chips, or CPUs, whose output is scheduled for 2023.

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Intel Corp plans to tap Taiwan Semiconductor Manufacturing Co to make a second-generation discrete graphics chip for personal computers that it hopes will help it fight the rise of Nvidia Corp, two sources told Reuters close to the file.

The chip, known as “DG2,” will be manufactured on a new chip-making process at TSMC that has yet to be officially named, but is an improved version of its 7-nanometer process, the researchers said. two familiar people.

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Intel, long the world leader in chip manufacturing technology, has lost its manufacturing lead in recent years and is now considering whether to outsource some of its central processor chips, or CPUs, including the release is scheduled for 2023.

Last month, activist investor Third Point LLC sent a letter to Intel’s board of directors asking it to consider whether to keep its chip design and manufacturing operations under one roof.

Intel has long outsourced chips other than its flagship processors and is a major customer of TSMC, the world’s largest contract chip maker. Last month, the head of Intel’s autonomous subsidiary, Mobileye, told Reuters that its next autonomous vehicle processor would continue to be manufactured by TSMC on its 7-nanometer process.

Read also | Microsoft is working on internal chips for its servers, PCs

With its graphics chips, Intel is looking to tap into the booming PC gaming market. Its DG2 chip is slated for release later this year or early 2022 and compete with Nvidia and AMD gaming chips that cost between $ 400 and $ 600, the sources say.

The chip-making technology for the DG2 is expected to be more advanced than Samsung Electronics Co Ltd’s 8-nanometer process used in Nvidia’s latest series of graphics chips launched in the fall, people said. They added that it would also be a step ahead of Advanced Micro Devices graphics chips made on TSMC’s 7 nanometer process.

Intel declined to comment and TSMC did not immediately respond to a request for comment.

Read also | What went into Apple’s new M1 chip?

Last year, Intel officials said it would outsource the DG2 chip, but didn’t say which chipmaker won the company or what chipmaking process it would use.

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