Gelsinger to visit Taiwan again

Monica Chen, Hsinchu; Rodney Chan, DIGITIMES Asia 0

Credit: AFP

Intel has confirmed that company CEO Pat Gelsinger will go on a business trip to Taiwan later this month.

Intel said Gelsinger will take part in Intel Vision in Taiwan, an event targeting high-level executives and managers from customers and partners. The CEO will deliver a keynote speech, share with the participants next-generation tech developments and how Intel can help companies create business values, Intel said.

Industry sources said Gelsinger is expected to meet with TSMC CEO CC Wei in his upcoming visit. During his December 2022 visit to Taiwan, Gelsinger did not meet with TSMC's top executives, who were then attending a first-tool in ceremony in the US for the foundry house's Arizona fab project.

Gelsinger is expected to arrive in the week starting May 21, and one of the major focuses is to restore the supply chain's confidence in the company and another is when Intel's collaboration with TSMC for 3nm chip manufacturing will start, the sources said.

Intel has been losing market shares and has reported losses for two consecutive quarters. Its manufacturing node advancements have also seen delays, disrupting product launch schedules, the sources said. It has reduced orders for 5/7nm chip orders for TSMC, and their collaboration for 3nm production has been delayed, the sources noted.

TSMC had high hopes for its collaboration with Intel, but the semiconductor market downturn has slowed down orders from Intel, and the foundry's 3nm capacity expansion catering for Intel has also been suspended, the sources said. Weak orders from Intel are one of the major reasons for TSMC's slow sales growth in 2023, and the bottleneck to raising 3nm capacity and overall utilization rates, the sources said.

It is estimated 90% of TSMC's 3nm manufacturing capacity will cater for Apple in 2023, and the rest for Qualcomm and a few other customers, the sources said.

Sources at PC makers disclosed earlier this year that Intel would delay placing orders for 3nm chips with TSMC until the fourth quarter of 2024.