Samsung has reportedly managed to land a deal with Intel that will officially allow the former brand to handle the production of some of the latter’s 14nm CPUs. This makes Samsung the second chipmaker that Intel has reached out to for help; last year, the company off-loaded part of its 14nm CPU production to TSMC, the Taiwan-based foundry, in order to focus on its the development of its new 10nm CPUs.
As pointed out by Pulse, this marks the first time that Intel maker has had to outsource the production of mainstream CPUs to multiple external facilities. Prior to this, the US-based semiconductor maker merely outsourced basic chip components, but never anything major like its consumer and HEDT CPUs.
The delay in its CPU production has both clearly and visibly cost Intel its place in the consumer desktop CPU market segment. While the company prepares to release its new 10nm CPU, its rival AMD recently launched its own 7nm consumer Ryzen and HEDT Ryzen Threadripper HEDT CPUs to the market.
Of course, the deal is also beneficial to Samsung, bringing some much needed business and another cash flow into the business. Now that the memory market demand is beginning to wind down.