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Intel Recruits TSMC To Produce Atom CPUs
arcticstoat writes "Intel has surprised the industry by announcing a memorandum of understanding (MOU) with Taiwanese silicon chip maker TSMC to manufacture Atom CPUs. Although TSMC is already employed by AMD, Nvidia and VIA to make chips, it's not often you see Intel requiring the services of a third fabrication party. Under the MOU, Intel agrees to port its Atom CPU technology to TSMC, which includes Intel's processes, intellectual properties, libraries and design flows relating to the processor. This will effectively allow other customers of TSMC to easily build Atom-based products similarly to how they might use an ARM processor in their own designs. However, Intel says that it will still pick the specific market segments and products that TSMC will go after, which will include system-on-chip products, as well as netbooks, nettops and embedded platforms."
Not too surprising given the situation with the economy. I'm sure its far cheaper manufacturing chips overseas than it is here.
Why?
Labor costs? I doubt a chip fab is really that senstive to hourly wages. Its not like each chip is hand crafted. Its all automated; and the robots are the same price anywhere. So sure labor is a bit cheaper, but we're probably talking a labor as fractional cents per cpu... they can afford it.
Materials cost? I can't really see it making much difference.
Environmental regulation compliance? Maybe; I have no idea how much a chip fab pollutes.
IP? Are there per cpu royalties that would be owed in the manufacturing process itself that they can avoid by doing it elsewhere? Maybe; but I doubt it. Intel's got plenty of patents and surely has the ability to easily cross-license with anyone that could prevent it from manufacturing.
Or is TMSC hurting for business due to the economic downturn, and is willing to make them dirt cheap, just to keep the factories running...?
So, serious question, why is it cheaper to have it done overseas?
From what I understand, pretty much every employee at the fabs being closed are being offered jobs at other fabs, and pretty much the only way that anyone's losing their job is if they can't move, or refuse to do so.
Picking up your life and your family's life and moving involves, for many or most people, selling their house, which is insanely difficult or involves selling at a very low price in the current economic crisis.
Intel executives likely realize this, and realize many people will have little choice but to not accept a position at a different fab. However, isn't it so nice for Intel executives that they get to make it look like they're purely good guys?