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Intel/TSMC announcement call - Atom will be made by TSMC

Last week we were given the heads up that on Monday, March 2nd Intel and TSMC will be making a strategic announcement at the Intel executive briefing center in Santa Clara. The event is taking place right now and is being hosted by Intel execs Anand Chandrashekar and Sean Maloney and TSMC execs Rick Tsai and Jason Chen. During the conference call Anand Chandrashekar announced that the Intel Atom Processor will be made in TSMC fabs. Outsourcing chip production is an unusual move for Intel, as they have taken great pride building their own processors in-house. With Atom now being built by TSMC it would only make sense that the upcoming Intel Larrabee (GPU) be made by them down the road. Intel said that they have been working on this deal for 2-3 years and has no plans on not becoming a manufacturing company. They believe that down the road that manufactures will need to expand into more areas than they are now and by joining forces with TSMC they will be able to expand and better adapt to the market by opening up the door to new designs that they can build internally.

TSMC created the semiconductor dedicated foundry industry when it was founded in 1987. It continues as the market leader by steadily increasing its capital spending and by out performing all other market competitors. TSMC posted annual sales of US$9.83 billion in 2007 and currently employs over 20,000 people worldwide. To serve and support our customer's manufacturing needs, TSMC maintains account service offices in China, India, Japan, Korea, the Netherlands, Taiwan and the United States.

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Posted by | Mon, Mar 02, 2009 - 11:19 AM