Intel to Launch New GPUs with TSMC as Sole Foundry Partner in 2024 and 2026, Aiming to Increase Market Share

According to Taiwan's Commercial Times, it has been reported that Intel will release its second-generation Battlemage and third-generation Celestial GPUs in 2024 and 2026 respectively. TSMC has secured the major chip-making orders for both 4-nanometer and 3-nanometer wafers.

Despite Intel investing heavily in building its own chip-making factories with advanced processes as small as 4 nanometers, Intel's GPU product line will continue to operate through a foundry partnership with TSMC, which is now its sole partner. The second-generation Battlemage graphics card will use TSMC's 4-nanometer process, expected to begin volume production in the first half of 2024. The third-generation Celestial graphics card will use TSMC's 3-nanometer N3X process, set to start mass production in the first half of 2026.

Intel sees strong demand for GPUs driven by applications such as gaming and AI, where discrete graphics cards and acceleration computing are critical growth engines for the future. Intel plans to launch product roadmaps that can be paired with its central processing units (CPUs) targeting specific markets, hoping to gain higher market share from competitors like AMD and Nvidia.

As part of Intel's IDM 2.0 strategy, the company is divesting from non-core businesses. Recently, there were rumors that Intel will transfer the technical solutions for notebook 5G WWAN product development to MediaTek and Fibocom by the end of May, and will exit the 5G baseband market entirely by July.