‘IBM will have server chips made at 7nm at TSMC’

IBM reportedly wants to enter into an agreement with Taiwanese chip manufacturer TSMC to manufacture server chips using the 7nm process. The move may lead to more competition for Intel in the server market.

Until now, IBM had its server chips made at GlobalFoundries, but the IT giant is about to turn to TSMC to make server processors at 7nm. Those chips should end up in upcoming Z15 mainframes. That writes the Japanese business newspaper Nikkei. GlobalFoundries announced this year not to make the step to 7nm and beyond, but to optimize its existing 12nm and 14nm processes.

IBM uses Power9 processors based on the Power architecture for its servers. In 2014, IBM sold its x86 server division to Lenovo. IBM’s Power systems have a relatively small market share, but are in the higher segment. Intel supplies 96 percent of chips for data center servers, according to TrendForce. As Intel struggles to make the move to 10nm, there may be opportunities for competitors to gain market share in the lucrative server market.

Intel’s first 10nm chips are expected at the end of 2019. AMD is also making the move to 7nm for its Epyc processors for servers. The move to a smaller process inherently offers the potential to increase performance and improve efficiency, quite apart from the architectural improvements.