TSMC could surpass Intel in quarterly revenue for the first time • The Register

In another sign of how fortunes have changed in the semiconductor industry, Taiwanese foundry giant TSMC is expected to surpass Intel on quarterly sales for the first time.

Wall Street analysts estimate that TSMC’s second-quarter revenue will increase 43 percent sequentially to $18.1 billion. Intel, on the other hand, is expected to see revenue decline 2 percent sequentially to $17.98 billion over the same period, according to estimates by Yahoo Finance.

TSMC’s potential to outperform Intel on quarterly revenue shows how demand for chip manufacturing has increased, fueled by companies like Qualcomm, Nvidia, AMD and Apple designing their own chips and outsourcing manufacturing to foundries like TSMC.

This trend has put Intel in a bind. The semiconductor giant has traditionally manufactured the chips it designs as part of its integrated device manufacturing model, but the company is now increasingly dependent on TSMC and other foundries for certain components as it expands its own manufacturing capabilities in the West.

The kicker is that Intel plans to use this increased capacity to produce more chips of its own while supporting its revived foundry business, which hopes to take business from TSMC and South Korea’s Samsung, the industry’s other leading chipmaker, in the future. to be able to take over.

This new strategy from Intel is called IDM 2.0, and it means the chipmaker must juggle two somewhat conflicting goals:

  • Taking foundry market share from TSMC and Samsung by convincing various fabless chip designers to use their facilities;
  • and using top nodes from TSMC and Samsung for certain components to compete with fabless companies like AMD and Nvidia.

One implication of this strategy is that Intel could potentially help TSMC grow in the future. For example, Intel’s forthcoming data center GPU, Ponte Vecchio, will use five different processing nodes of itself and TSMC. On the PC side, Intel’s next-gen Meteor Lake client processors, due for release in 2023, will also use a mix of nodes from Intel and TSMC.

Meanwhile, Intel’s new contract manufacturing business, Intel Foundry Services, is still in its very early stages. In the first quarter, Intel Foundry Services brought in just $283 million [PDF]which represented approximately 1.6 percent of the $16.7 billion in revenue TSMC generated during the same period.

Samsung has already surpassed Intel as the top-selling semiconductor company, so TSMC may grow larger than the x86 behemoth, further underscoring Intel’s tentative position. ®

https://www.theregister.com/2022/06/27/intel_tsmc_results/ TSMC could surpass Intel in quarterly revenue for the first time • The Register

Chrissy Callahan

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