Intel aims to surpass TSMC in advanced chip-manufacturing

Intel has revealed its strategy to surpass its biggest rival TSMC in advanced chip manufacturing, aiming to regain its position as the maker of the world’s fastest and most sophisticated chips. At the IFS Direct Connect 2024 event in San Jose, California, the company disclosed its roadmap, including the use of Intel 18A and Intel 14A manufacturing technologies, with Microsoft set to utilize its 18A technology for a custom computing chip.

Intel’s ambitious plans mark a significant effort to reclaim its dominance in chip manufacturing. The company aims to outpace TSMC later this year with its Intel 18A technology, followed by extending this lead into 2026 with the introduction of Intel 14A. With Microsoft on board as a customer for its 18A technology, Intel expects to see an increase in foundry orders, now projecting $15 billion compared to the previously estimated $10 billion.

TSMC remains tight-lipped about the competitiveness of its advanced technologies

Meanwhile, TSMC is keeping quiet about the competitiveness of its advanced technologies, despite Intel’s push to regain market leadership. TSMC’s stock performance reflects its current dominance in producing advanced chips for AI applications, with its Taipei-listed stock surging nearly 17% this year.

The unveiling of Intel’s 14A technology marks the company’s first detailed roadmap beyond 2025, a deadline set by Intel CEO Pat Gelsinger to regain chipmaking supremacy. Intel’s focus on attracting outside customers and securing government subsidies underscores its commitment to revitalizing its chip manufacturing operations. The company hopes to leverage its geographic diversity and partnerships with institutions like ARM and universities to strengthen its position in the market.

Intel’s effort to entice outside customers, including potential collaborations with industry leaders like Nvidia, is seen as crucial for its turnaround strategy. While Nvidia has not announced a deal with Intel yet, analysts believe Intel’s special technology for AI chips could be appealing to companies in the AI chip market.

Overall, Intel’s roadmap signals a determined effort to regain its competitive edge in chip manufacturing, with the success of its strategy dependent on attracting key customers and executing its plans effectively over the coming years.