IBM Taps TSMC for 7nm Data Center Server Chips

IBM will tap Taiwan Semiconductor Manufacturing Co. (TSMC) for its data center server chips, according to a Nikkei report. The deal is a major win for TSMC as it challenges Intel’s dominance in the data center. IBM wouldn’t comment on the report and TSMC did not immediately respond to a request for comment. But according to Nikkei, IBM will order TSMC’s 7 nanometer (nm) chips, which also power the core processors in Apple’s newest iPhones. IBM designs its own chips and has been using another contract chipmaker, Globalfoundries, to produce them. TSMC, however, is the first to market with 7nm technology. Because of this IBM is looking to make the switch, Nikkei reports. Samsung recently started producing 7nm chips, while Intel’s long-awaited 10nm technology (this is expected to be competitive with the other vendors’ 7nm chips) has been delayed until “holiday of 2019.” In August, Intel admitted difficulty developing its processor technology for 10nm chip manufacturing.