Global chipmaker giant Intel Corp has shocked the technology sector when it announced its decision to outsource its chip manufacturing to Asia which now is the epicenter of cutting edge technology in the semiconductor industry.
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The US-based company has been the largest chipmaker and innovation leader for most of the past 30 years by combining the best designs with cutting-edge factories most of which are still in the US.
While most of the US chip manufacturers shut down operations or sold fabrication units years ago with most depending on Asian firms to make the components, Intel stayed in the country arguing that it was better off staying in the States.
But the future looks uncertain for the leader of the semiconductor market as it has failed to move towards the much-coveted evolution to the 7-nanometer production process. While Intel is still stuck at the 10nm process, its competitors have clearly moved to the next stage of evolution and are most likely to be on the 5nm process by the time Intel reaches 7nm.
In a sector where innovation and cutting edge technologies evolve rapidly, being a generation behind on the manufacturing process means that Intel’s chipsets will be obsolete by the time they reach the market.
Most of the outsourcing is expected to be done by Taiwan Semiconductor Manufacturing Co (TSMC)., which focuses on production and is currently the world leader with clientele which includes Google and Qualcomm.
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