New Intel processors will be expensive. The reason is simple

Intel boasted about its financial results for the second quarter and shared forecasts for the third quarter of 2024. There is no point in distorting reality – it is not good. This is confirmed by the announced savings and mass layoffs. Of course, the company is still a giant, and its new products will soon hit the market.

The cost of production will be higher by using TSMC

Consumer segment we will get processors this year Intel Arrow Lake-S for desktop computers and Intel Lunar Lake for mobile devices. Both series are to use new architectures and lithography, which will translate into a leap in performance and will eliminate the errors of previous generations.

Family Intel Core Ultra 200 (Lunar Lake) is set to debut on the market September 3, 2024. Her strong point will be high performance with low power consumptionso the perfect combination for light and slim ultrabooks and portable consoles. We will also see here good support for AI-related applications.

However, the new processors will use modular constructionso it should consist of several different tiles. Three of them are to be produced by TSMC. Meaning that the cost of production will be higher than beforedue to the Taiwanese commission. This means lower margins for Intel or higher prices for consumers.

Fortunately, there is also good news. The Blues boasted that they already have working copies Panther Lake and Clearwater Forestand their results are very promising. Both families are to be manufactured in Intel plants, in the Intel 18A process (1.8nm class). This is supposed to mean higher performance and lower power consumption than other CPUs on the market, but also lower production costs due to the lack of intermediaries.