Intel Delays 7nm Processors Until 2023 Amid Yield Issues

Intel pushes back its 7nm CPU releases to late 2022 or early 2023 due to a manufacturing defect that impacts chip yields. The company is also exploring third-party foundries for some of its upcoming products.

Intel announces a six-month delay for its 7nm processors, pushing the market debut to late 2022 or early 2023. The company reveals that a defect mode in its 7nm process causes severe yield degradation, putting the process a full twelve months behind internal targets. This significant setback threatens Intel's standing in the competitive CPU market.

To mitigate the manufacturing issues, Intel CEO Bob Swan confirms that the company is investing in contingency plans. These plans include outsourcing production to third-party foundries, a major strategic shift for the traditionally self-reliant chipmaker. Intel plans to use external foundries for parts of its upcoming Ponte Vecchio GPUs, which now arrive in late 2021 or early 2022.

The delayed timeline directly impacts Intel's server roadmap, with Granite Rapids 7nm CPUs now scheduled for 2023 instead of 2022. This lag gives AMD a clear opening to capitalize on the data center market with its own 5nm Genoa processors, which remain on track for a late 2022 release. Intel now faces immense pressure to resolve its manufacturing woes and regain its technological footing.

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