IBM’s Two-Nanometer Transistor Could Be The Key To Reviving Intel’s Fab Technology

Intel’s manufacturing woes have been widely reported, but the company has a secret weapon to solve them: A new alliance with IBM. That company’s recent announcement of the world’s first two-nanometer (2nm) transistor provides a roadmap for how Intel can regain its manufacturing mojo and improve the competitiveness of its processors.

Intel’s long struggles with its 10nm technology have left it about two years behind Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) for that generation of transistor. By the time Intel deploys its next-generation 7nm technology, which it expects to do late next year, it will be again be two years behind. Since TSMC builds chips for archrival AMD, this technology lag makes it more difficult for Intel to build competitive PC and server processors.

Earlier this year, new Intel CEO Pat Gelsinger announced a revamped manufacturing strategy headlined by a $20 billion investment in 7nm fabs. Overlooked in that announcement was a brief mention that the company would ally with IBM in the development of future fab technology. IBM already licenses its transistor designs to GlobalFoundries and Samsung, so Intel is joining a team of TSMC competitors to pool research and share the huge cost of developing ever-smaller transistors.

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