Intel will start enlisting the help of Taiwan Semiconductor Manufacturing Company (TSMC) to produce its 14nm processors because it can't cope with the demand by itself.
According to sources, the company is around 50% short on production power and it needs help to get up to maximum capacity. One of the reasons Intel is so behind on production of its 14nm chips is because its 10nm processors have been delayed, putting more pressure on 14nm chip manufacture.
"Intel intends to give priority to its high-margin products mainly server-use processors and chipsets amid its tight 14nm process capacity, and therefore plans to outsource the production of its entry-level H310 and several other 300 series desktop processors to TSMC," a sources told DigiTimes.
Intel wouldn't comment specifically on the shortage but said it has experienced increased demand over the year so far and this means it needs to find new ways to meet expectations.
"Customer demand has continued to improve over the course of the year, fuelling growth in every segment of Intel's business and raising our 2018 revenue outlook $4.5 billion from our January expectations," Intel said in a statement released to media outlets.
"We will have supply to meet our announced, full-year revenue outlook and we're working closely with our customers and factories to manage any additional upside."
A shortage of the company's 14nm processors has resulted in increased component costs for OEMs, with DigiTimes commenting that its Core i5-8400, i5-8500, i5-8600 and i7-8700 are costing more for equipment manufacturers - not great news now sales of PCs are on the up.
TSMC already has a pretty established relationship with Intel. The company produces SoFIA-series handset SoC chips and those used in the iPhone.
