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Intel Unveils 1.4nm Chip Plan, Aims to Challenge TSMC: CEO Gelsinger Sets Vision at Foundry Event
Intel plans to produce chips at the 1.4-nanometer level to compete with TSMC and Samsung. TSMC and Samsung are already producing 3-nanometer chips, while Intel is at the 5-nanometer mark. Samsung aims for mass production at the 1.4-nanometer level by 2027, and TSMC targets 2027 to 2028.
Intel, the U.S. chipmaker, has announced its plans to produce chips at the cutting-edge level of 1.4 nanometers in the coming years. This move is part of Intel's strategy to compete with Taiwan Semiconductor Manufacturing Co. (TSMC), the world's leading contract chipmaker. The announcement was made by Intel CEO Pat Gelsinger at the company's first foundry event, Intel Foundry Direct Connect.
Gelsinger stated, "Today we are announcing Intel 14A for the first time. You can think about this for 1.4 nanometer technology." Currently, Intel lags behind TSMC and Samsung Electronics in terms of transistor density on a single chip. A smaller nanometer measurement indicates a more advanced chip. While TSMC and Samsung are already producing 3-nanometer chips, Intel is at the 5-nanometer mark. All three companies are racing to develop 2-nanometer chips by 2025.
Samsung aims to achieve mass production at the 1.4-nanometer level by 2027, while TSMC is targeting 2027 to 2028, according to various media reports. TSMC currently holds the largest market share in the foundry industry, with nearly 60%, followed by Samsung with around 13% and Taiwan's UMC with 6%, as reported by Counterpoint, a technology market research firm.
During the event, Gelsinger reiterated Intel's goal to become the world's second-largest foundry by 2030. He emphasised that the increasing demand for chips, driven by artificial intelligence (AI), necessitates a diversified semiconductor supply chain to mitigate geopolitical uncertainties. Gelsinger mentioned a reported visit by U.S. Congressman Mike Gallagher to Taiwan and highlighted the importance of building supply chains that are not affected by such geopolitical events.
In a significant development, Microsoft has become Intel's foundry customer, selecting Intel's 18A process for chip manufacturing. Intel plans to begin production using the 18A process this year and introduce the newly announced 14A process around 2027. The company aims to regain process leadership with Intel 18A by 2025. However, TSMC CEO C.C. Wei has stated that TSMC's 2-nanometer technology is more advanced than Intel's 18A due to an earlier time to market, better technology maturity, and lower costs.
When asked about Intel's relationship with TSMC, Gelsinger expressed admiration for the Taiwanese chipmaker and emphasised the healthy competition between the two companies. He stated, "I think TSMC is a great company, and we are going to build a great foundry as well. And we're going to challenge each other to further greatness. They are always going to be centered in Asia. We're always going to be centered in the U.S."
Microsoft's decision to manufacture its chip design using Intel's technology is a significant step towards reducing its reliance on Nvidia, another U.S. chipmaker. Nvidia has been struggling to meet the increasing demand for its high-performance AI processors. Microsoft CEO Satya Nadella highlighted the importance of a reliable supply of advanced and high-quality semiconductors to achieve their vision of transforming productivity for individuals and organizations.
Intel plans to produce chips at the 1.4-nanometer level to compete with TSMC and Samsung.
TSMC and Samsung are already producing 3-nanometer chips, while Intel is at the 5-nanometer mark.
Samsung aims for mass production at the 1.4-nanometer level by 2027, and TSMC targets 2027 to 2028.
Source: NIKKEI ASIA