Shulou(Shulou.com)11/24 Report--

CTOnews.com January 29 news, recently Intel announced the fourth quarter of 2022 and full-year results, the performance is very poor, Intel shares fell nearly 10% in after-hours trading after the release of the results.

One of the least noticed highlights of Intel's earnings call this week was the announcement that Intel contract Manufacturing Services (IFS) had received an order from a major "cloud, edge and data center solution provider" to make chips using the Intel 3 process. For the time being, however, Intel did not disclose the name of the customer or the specific OEM products.

Intel CEO Pat Gelsinger said: "I am pleased that we have added a leading provider of cloud computing, edge and data center solutions to become a cutting-edge customer for Intel 3. Previous customers, including MediaTek, can generate more than $4 billion in revenue for Intel contract manufacturing services."

The company has been customizing Intel 20A and Intel 18A (2nm and 1.8nm, respectively) for its contract manufacturing customers, in contrast, the current and upcoming Intel 7 (10 nm enhanced SuperFin), Intel 4 (7 nm with EUV) and Intel 3 (7 nm + with EUV) nodes are mainly designed for Intel's own consideration. Therefore, it is a great achievement to win a big customer with Intel 3 process.

At the same time, Intel is likely to produce semi-customized Xeon processors for a major customer.

CTOnews.com learned that Intel's IFS has been steadily gaining momentum. The contract manufacturing division won two initial customers, Qualcomm and AWS, and won a contract with the U.S. Department of Defense. In addition, Intel said it was actively working with many of the largest fabless chip designers, a considerable achievement for a contract chipmaker that has been in the business for less than two years.

Gelsinger said Intel is also actively working with seven of its 10 largest foundry customers, including 43 potential customers and ecosystem partners, to test the chips and share an engineering version of PDK 0.5 with them, with a final release likely in the coming weeks.

For Intel's contract manufacturing service, however, not everything is good. The proposed $5.4 billion acquisition of Tower Semiconductor, a specialist contract manufacturer with a large customer base, has hit a snag. China's General Administration of Market Regulation has suspended its review of the deal, according to Seeking Alpha. Intel remains optimistic about the acquisition of Tower Semiconductor and plans to close the deal within the first quarter of 2023.

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