Intel is 'wooing' TSMC's market supply chain to help its own foundry business

Intel is well aware that it faces multiple obstacles in its course to becoming the biggest in the semiconductor foundry industry; where we're hearing Intel is talking to Taiwan-based factories that have worked with TSMC, to help its Intel Foundry business.

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In a new report from DigiTimes, the outlet says that the strength of Intel's R&D power shouldn't be underestimated. The R&D technology -- including ASML's bleeding-edge EUV lithography machine delivered to its US operations at the cost of $380 million and split into a new Intel Foundry business -- is as good as and even ahead of TSMC with some of its revolutionary, innovative technologies.

The hurdles that Intel faces are a few: companies don't have the same trust in Intel to fab their chips as they do with TSMC, with high manufacturing costs, yield rates, efficiency, and on-schedule in terms of mass production aren't close to what TSMC is, and has been capable of over the years.

Intel is now reportedly receiving help from Taiwanese factories that have been working closely with TSMC for many years, including companies that have cooperated with TSMC. Some of these companies include Jiadeng and Titanium Shelg, and DigiTimes reports that they have also begun cooperating with China Sarawak and others.

Intel has also started talks with Changchun Petrochemical, Li Changrong Chemical, and Global Crystal, which followed TSMC with setting up new factories in the United States. DigiTimes writes: "It hopes to cooperate with TSMC for many years while having high pressure resistance, strict division of labor and cost control, and without losing Taiwanese manufacturers are flexible and can improve their shortcomings to enhance their competitiveness".

According to some Taiwanese manufacturers, the outlet points out that when compared to TSMC, Intel is more "rigorous in all aspects". Product verification took many years in the past, so a part of the Taiwanese manufacturers' supply chain was very low. Intel hopes to walk in the footsteps of TSMC's supply chain, but "more enhanced" when it comes to cost and efficiency.