Intel outsources back-end design of its chipsets

Intel is reportedly planning to outsource its motherboard chipsets to a third-party vendor. Pat Gelsinger‘s company appears to be changing its strategy of making its own chips, which it is now outsourcing in some areas.

Intel plans to hire a Taiwanese manufacturer for its chipsets

According to a new report from Digitimes, Intel is considering increasing back-end outsourcing of its PC chipsets. The manufacturer of choice would be Powertech Technology (PTI)based in Taiwan. This would be one of the chosen ones, but the source suggests that there could be more taking over the manufacturing of chipsets and other components.

Powertech Technology (PTI) would have been ordered by the second quarter of 2023. This appears to be a radical change in strategy for Intel, which has previously designed and manufactured its own chipsets.

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The back-end refers to the physical design phase of the chip, while the front-end refers to the logic design, so the back-end is usually associated with the final manufacturing process of the chip.

This means that Powertech Technology (PTI) would focus on finalizing the design of the chip, which would then go into mass production, which would be handled by manufacturer TSMC, which has a huge production capacity in its facilities.

Times are changing for the manufacturer, which we have learned is using TSMC’s facilities to manufacture its processors and ARC GPUs. We’ll keep you posted on the latest.