With Intel planning to outsource parts of its processor production to outside foundries, TSMC will not place extra effort to handle the CPU giant's orders if they come as TSMC believes these orders will not be for the long term. However, Taiwan's backend houses are optimistic about Intel's outsourcing and expect their operations to benefit from the orders. Meanwhile, Foxconn is stepping up its effort in striving for more orders from first-tier datacenter operators including Facebook and Google as the server market is now driven primarily by the cloud computing business.
TSMC unlikely to build additional capacity for Intel orders: TSMC internally does not consider orders for Intel's processors as long-term ones, and therefore is unlikely to build additional production capacity for the new contract if it comes, according to industry sources.
Taiwan OSAT providers expect Intel to step up outsourcing: Intel is expected to step up its outsourcing of chips and processors, particularly GPUs and IoT chips, for years to come, according to sources at Taiwan-based outsourced assembly and test (OSAT) providers.
Foxconn revving up to expand presence in cloud server sector: Having obtained orders from Amazon Web Services (AWS) and Microsoft, Foxconn Technology Group (Hon Hai Precision Industry) is gearing up to win orders from Facebook and Google seeking to further expand its presence in the cloud server sector, according to industry sources.