Intel: 7nm processors coming in 2023 but we’re outsourcing some

According to Intel, the causes of the problems with its 7nm chip production have been found and the first products will appear in consumer systems in 2023. However, an increasing part of the production is outsourced by Intel.

According to outgoing Intel CEO Bob Swan, his company has “made tremendous progress” in 7nm production. According to him, a sequence of steps contributed to the problems with that production and the defects were corrected by adjusting this sequence. In addition, Intel has simplified the 7nm process over the past year to ensure the products can be released in 2023.

In July last year, Intel announced that it was having problems with its 7nm production and that it had to postpone the release of the first processors by several quarters. The company then considered outsourcing production. Then, for example, TSMC would make Intel chips. Intel now confirms to do so.

New Intel CEO Pat Gelsinger reported that the majority will be “on our 7 nanometers” by 2023. “But we will also expand the use of foundry capabilities during that period.” In February, Intel will announce more about the outsourcing plans, when Gelsinger officially takes up his position as CEO.

According to research firm Trendforce, TSMC will begin production of Core i3s for Intel in late 2021, and by the end of 2022, that company would begin making mid-range and high-end processors for Intel, on its 3nm node. This rumor has not been confirmed.

Intel had revenue of $20 billion in the fourth quarter, 1 percent less than last year. The Client Computing Group’s revenue, which includes consumer processors, increased 9 percent to $10.9 billion. This was mainly due to the renewed popularity of laptops. Intel delivered 33 percent more laptop processors than in the last quarter of 2019. The average selling price of those processors did decrease, indicating that consumers are choosing cheaper models such as Chromebooks.