Intel is facing a shortage of 14nm chip production due to continuous "performance issues". To support the growing demand for chip 14nm, the company plans to outsource production to TSMC - its chip maker Apple.
As the DigiTimes, Intel seems to be unable to cope with chip production 14nm, as the California-based technology company wants to prioritize high performance products such as processors used on servers and chipsets. Chips production 14nm does not meet demand at a rate of 50%. Outsourcing of their production is the only choice the company has to meet demand, as there is no possibility of creating additional 14nm chips. This inability to meet demand has led to increased pricing of some CPUs in the market.
Intel has already worked with TSMC for SoC and FPGA products in the SoFIA series. TSMC also manufactures an Intel chip used on the iPhone. With outsourcing, the company's core problems for the 14nm chipset offer will cease to exist by the end of 2018.
Intel has repeatedly postponed the release of 10nm Cannon Lake Processor announced on 2016. It is the main reason why the company faces limited capacity to build 14nm chip.
According to the company's announcement, the 10nm chip has been postponed for the fourth quarter of 2019.