Intel has reportedly placed 3nm orders with TSMC for its next-generation AI chip codenamed "Falcon Shores" which teases TSMC's new CoWoS advanced packaging will be used, with Falcon Shores expected to be produced in late 2025.
In a new report from CNyes, TSMC has received yet another "successful order" for Intel's next-gen AI chip called Falcon Shores on TSMC's newer 3nm process node and CoWoS advanced packaging technology, with Falcon Shores to take on NVIDIA's tight grip on the AI chip market.
The new Falcon Shores AI chip design has been finalized (tape out) and will reportedly enter mass production at the end of 2025. Intel acquired Habana back in 2019, with Habana maintaining its independence in its operating model, but over the years, things have changed and now Intel will combine Habana's technology with its own GPU technology.
Intel and Habana's collaboration will connect the programmable architecture and the graphics processing core, strengthening AI computing power. This will "demonstrate the technical strength of both parties in two major fields and also give Intel high hopes for Falcon Shores," reports CNyes.
The product strategy for Falcon Shores is now shifting, where it won't just be a single product or a specialized AI chip for the Chinese market. Instead, Intel is developing Falcon Shores into a new AI chip platform. It will be backward compatible with Intel's in-house Gaudi 3 AI accelerator, which will be released in 2025, with Falcon Shores having at least 3 different levels of chips to power: high-end, mid-range, and low-end, all-in-one rich product portfolio to (hopefully) see Intel scooping up some of NVIDIA's growing (dominant) AI chip market share.
- Read more: TSMC seeks land for new CoWoS advanced packaging plant, struggles to keep up with AI demand
- Read more: TSMC's work on CoWoS advanced packaging halted in Taiwan after archaeological ruins found
- Read more: TSMC to raise 3nm manufacturing costs by 5%, new CoWoS advanced packaging 10-20% in 2025
- Read more: TSMC is already buying equipment for two CoWoS advanced packaging plants to be built in Taiwan
- Read more: TSMC to expand CoWoS equipment orders: huge AI chip demand from NVIDIA, Amazon, Meta, Tesla
- Read more: NVIDIA and AMD have reserved all of TSMC's CoWoS and SoIC advanced packaging for 2024 and 2025
Interestingly: Intel isn't making its new Falcon Shores AI at its own foundries, instead sending it over for full production at TSMC, reportedly placing orders for CoWoS advanced packaging from TSMC, too. Sources of CNyes teased that Intel will use advanced packaging for the first time, with Falcon Shores being built on 3nm and 5nm processes and using CoWoS-R advanced packaging technology for mass production.
Until now, rumors had Intel's next-gen Falcon Shores AI chip to consume up to 1500W of power and exclusively water-cooled, with no air-cooled variants to be made. This strategy seems to be changing as the fight for AI chip supremacy heats up in 2025 and beyond.
