“Intel is encountering tight 14nm process production capacity in-house, and is looking to outsource part of its 14nm chipset production to Taiwan Semiconductor Manufacturing Company (TSMC), according to industry sources,” Monica Chen and Jessie Shen report for DigiTimes. “Intel intends to give priority to its high-margin products mainly server-use processors and chipsets amid its tight 14nm process capacity, and therefore plans to outsource the production of its entry-level H310 and several other 300 series chipsets to TSMC, the sources indicated.”

“Intel has seen its overall 14nm chip supply fall short of demand by as much as 50%, the sources said. Outsourcing has become the only and appropriate choice for Intel since the company is unlikely to build additional 14nm process capacity, the sources noted,” Chen and Shen report. “TSMC is already a contract manufacturer of Intel for SoFIA-series handset SoC chips and FPGA products, and makes Intel’s baseband chips for use in the iPhone, the sources said.”

“Market observers believe that Intel’s tight capacity for 14nm stems from its delay in advancing to 10nm,” Chen and Shen report. “Intel originally planned to enter mass production of its 10nm Cannon Lake processors in 2016, but has been pushing back the schedule.”

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MacDailyNews Take: If Intel can’t do it, TSMC can.