Intel Outsources Desktop CPU Production to Samsung Due to Worsening Chip Shortage

Intel has reportedly hired Samsung to help curb its chip supply woes. According to a report by Maeil Business News Korea, the South Korean electronics giant has won orders to produce Intel’s desktop processors, which are traditionally produced in-house. The unprecedented decision provides insight into just how bad the shortage really is.

Market observers say Samsung Electronics has emerged as a strong partner for Intel as TSMC maintains supply contracts with AMD, Intel’s biggest rival and the world’s No. 2 CPU maker, and Chinese telecom giant Huawei, which is subject to U.S. sanctions. “Samsung is expected to benefit from TSMC’s tight production schedule,” said Kim Yang-jae, analyst at KTB Investment & Securities. “More chip orders are likely to come from Intel and Qualcomm next year.”

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