SoftBank abandons plans to jointly develop AI chips with Intel and now focuses on TSMC.

SoftBank was in talks with Intel about producing an artificial intelligence chip. These plans have now been scrapped because the American chipmaker does not meet the Japanese company’s requirements. SoftBank is now targeting Taiwanese chipmaker TSMC, although no agreement has yet been reached.

Setback Intel

The American chip giant has already suffered a number of setbacks recently. The company recently had to admit that there were problems with its 13th and 14th generation “Raptor Lake” processors. Intel also laid off 15,000 employees as part of a strict cost-cutting plan. As a result, the planned Intel Innovation event was postponed to 2025.

Intel was also in talks with SoftBank about producing an artificial intelligence chip with which the Japanese company wanted to compete with Nvidia. These talks are said to have been broken off because Intel did not meet the Japanese company’s demands, sources told the Financial Times. The chips would not be fast enough and would be produced in too small quantities.

From Intel to TSMC

SoftBank has left Intel behind and is now targeting Taiwanese chipmaker TSMC, which makes the vast majority of advanced processors in the world. This is not surprising, as TSMC has had experience in EUV machines since 2015, while Intel only started using ASML’s equipment for mass production late last year. No agreement has been reached yet.