WASHINGTON -- Intel Corp. continues to hold discussions with Taiwan Semiconductor Manufacturing Co. Ltd. for the foundry to make non-processor chips for the U.S. chip giant, a spokesman for TSMC's U.S. subsidiary said today. No definite agreement has been made, despite talks between the two companies that have gone over the past year, he said.
TSMC early this year confirmed that Intel was then discussing the possibility of outsourcing some chips to the Hsinchu-based foundry. The type of chips Intel is considering having TSMC make is not known, although industry sources believe it would be commodity-type parts, such as Southbridge chips, USB chips, and other I/O chips that Intel uses in its chipsets and motherboards.
Some foreign media speculated that an Intel deal with TSMC would threaten other major customers of the foundry giant that are competitors of Intel. However, it is believed Intel is discussing commodity parts unrelated to chipsets or processors that compete with Intel rivals. The TSMC spokesman said the Taiwan foundry company could add any Intel orders without endangering the production schedules of its other key customers.