Although the 14nm manufacturing process used by Intel for the current generation of processors is still being used – ever since the year 2014 – and it should have reached maturity a long time ago – Intel is still having problems in making and delivering high volumes of processors and this is where Samsung steps in, Intel’s new partner. Samsung is taken over part of the Intel manufacturing activity and the South Korean company is building processors for Intel in its own factories.
The 14nm supply problems have started in the second half of last year and the situation has become so worse that the director of the Intel marketing and communication department, Michelle Johnston Holthaus, has publicly apologized last week for the constant delays in supplying products. She said that the development of the PC market this year has surpassed Intel’s efforts and the solution Intel has found to fix this problem was to make partnerships with other manufacturers in order to satisfy the demand of the market.
One of the reasons why Intel has such problems is the fact that Intel has been investing in the 10nm manufacturing process and making it possible in a very short while. Even so, years may pass until Intel will be able to effectively put the plan into motion. In the mean time, Intel must continue to make and sell 14nm processors regardless of how obsolete it may appear compared to the 7nm processors delivered by AMD.
The 10nm manufacturing process developed by Intel is, from many points of view, more ambitions and superior to the 7 nm process currently being used by AMD, as it promises processors with a bigger transistors density and more energy efficient.
Unfortunately for Intel there aren’t too many options to find partners building processors using the 14nm process, TSMC and Samsung Electronics being the only ones capable of delivering high volumes. Considering that TSMS is AMD’s partner, the biggest rival of Intel, the company has focused on creating a feasible partnership with Samsung.
Samsung has a lot to gain from this partnership with Intel. Samsung has been trying for a long time to find other ways to grow after Samsung’s revenue from memories has decreased as the prices went down quite a lot.