A report last week claimed that the PC market will be heavily affected by Intel. The chipmaker’s 14nm chip supply is falling short on demand. In order to cope with the situation, a new report today asserts that Intel is outsourcing part of its 14nm chip production. Taiwan Semiconductor Manufacturing Company (TSMC) will take over part of the production, unnamed industry sources suggest.

TSMC is already manufacturing chips for Intel, including SoFIA-series handset SoC processors and iPhone baseband chips. Since Intel’s supply of 14nm chips is 50 percent lower than needed, the company will focus on “high-margin products mainly server-use processors and chipsets”, says the report.

TSMC will take over entry-level H310 and several other 300 series desktop processors, said the aforementioned sources. Intel, however, did not comment on the report. People familiar with the matter predict that the shortage will ease up towards the end of the year.

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