To increase its own competitiveness in the market for hardware solutions for artificial intelligence, last month Intel released the Gaudi 3 AI accelerator, which is manufactured using a 5 nm process technology. Now it has become known that struggling Intel has cut its supply plans for such chips by 30% in 2025. This could ultimately have a negative impact on Intel’s supply chain partners in Taiwan.
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The report said that the reduction in supplies may be due to changes in the company’s internal policies and demand, which is why Intel decided to reduce orders in Taiwan from companies such as TSMC, ASE Technology and Alchip. According to the source, Intel initially planned to release from 300 to 350 thousand Gaudi 3 AI accelerators in 2025. Now this plan has been revised, and the company intends to put on the market from 200 to 250 thousand such accelerators.
It is noted that after purchasing the Israeli manufacturer Habana Labs, which was developing AI chips, in 2019, Intel began to treat the idea of developing a new generation of AI accelerators together with third-party companies more cautiously. This is evidenced by the company’s recent steps, including the accelerated winding down of Gaudi 2 accelerator production and the reduction of Gaudi 3 delivery plans for next year. Intel officials declined to comment on the matter.
According to the source, Intel’s change of plans will have little impact on TSMC, whose facilities are used to produce Gaudi 3. TSMC’s advanced production lines are in high demand, so other customers are likely to take Intel’s place. The same applies to ASE and its subsidiary SPIL, which packages and tests chips as part of a collaboration with Intel. For smaller companies, such as Alchip, which designs specialized ASICs for Gaudi 2 and Gaudi 3, the consequences could be more serious. Unimicron, which is one of the main suppliers of substrates for Intel chips, may also suffer due to a decrease in orders for production of products for the American company.