Intel to decide soon on outsourcing 7nm production

Intel will decide in early 2021 whether it will manufacture 7nm chips in-house or at an external foundry, CEO Bob Swan told investors. The processor maker reported this summer that 7nm development had hit a roadblock, delaying the release of the new chip generation by six months to a year. It also said it was considering outsourcing production.

“Since the last time we spoke, our 7nm process is doing very well,” Swan said, adding that a fix was deployed and “wonderful progress” is being made. “But nonetheless, we are still going to evaluate third-party foundry versus our foundry. The call will be toward the end of this year, early next year,” he said. Intel’s considerations to go one way or the other are schedule predictability, product performance, and economics with the supply chain.