Intel continues to outsource - report -

The dark satanic rumour mill has manufactured another hell on earth yarn about Intel's continued moves to outsource its production.

Digitimes is sure that it has confirmed that Chipzilla is going to outsource the production of its Panther Point chipsets to Taiwan Semiconductor Manufacture Company (TSMC).

As we said yesterday Panther Point will be paired with Ivy Bridge CPUs which Intel plans launch in the first quarter of 2012 .

The general move to outsourcing is to see off competition from AMD. Intel has had a gutsful of being continually undercut by AMD and the price of its Fusion APUs are the last straw.

Outsourcing will help Intel save production costs so that it can provide its chips at a lower rate. It will also allow the chipmaker to focus on production using advanced technology processes.

TSMC has just said it will spend $5.9 billion in 2011 to ramp up its capacity so that Intel will outsource the Panther Point chipsets to the pure-play foundry house.

Intel is not saying anything of course so it is just rumour and speculation, but given Intel's interest in outsourcing lately it is not surprising.