Intel plans to outsource the production of its Panther Point chipsets which will be paired with Ivy Bridge CPUs to Taiwan Semiconductor Manufacture Company (TSMC), according to industry sources. Intel is scheduled to launch the Ivy Bridge CPUs in the first quarter of 2012.
The outsourcing will not only help Intel save production costs so as to tackle price competition brought on by AMD's Fusion APUs, but also allow the chipmaker to focus on production using advanced technology processes, the sources noted.
TSMC's recent announcement that it will set aside a capex budget of US$5.9 billion for 2011 to further ramp up its capacity also persuaded Intel to outsource the Panther Point chipsets to the pure-play foundry house, the sources asserted.
Intel Taiwan said it will not comment on products that have not been launched and related policies.