Intel intends to commission TSMC to produce the second-generation discrete graphics card DG2

Intel plans to commission TSMC to produce second-generation discrete graphics cards for personal computers, hoping to counter the rise of Nvidia.

The chip named “DG2” will use a new chip manufacturing process from TSMC, which has not yet been officially named, but is an enhanced version of its 7-nanometer process.

Intel has long been a leader in global chip manufacturing technology, but has lost its manufacturing advantage in recent years. It is currently discussing whether to outsource the production of some flagship central processing unit chips (CPU) scheduled to be released in 2023.

Prior to this, Intel had been outsourcing the production of chips other than CPUs to other companies and was a major customer of TSMC. The head of Intel’s autonomous driving subsidiary Mobileye said last month that its next-generation autonomous car processors will continue to be produced by TSMC using a 7-nanometer process.

With its graphics chip, Intel hopes to enter the booming PC gaming market. According to sources, Intel’s DG2 chip is expected to be released later this year or early 2022 to compete with Nvidia and AMD gaming chips priced between US$400 and US$600.