Intel's GPU Strategy Unveiled: What We Can Expect from the Tech Giant

 Despite facing significant challenges, Intel seems to be making steady progress with its next-generation graphics cards, with plans in place for the future. According to a recent report, Intel has reportedly placed a large order for GPU chips from TSMC.

Intel® Arc™ A350M Graphics

Although Intel Arc is struggling to compete against the best graphics cards in the market, this news is still very positive for the GPU industry as a whole. Here's why.

Compared to its competitors AMD and Nvidia, Intel is still relatively new to the discrete GPU market, with only a limited number of cards available, including the Arc A770, Arc A750, and Arc A380. While it failed to make a significant impact by arriving late in the respective GPU lifecycle, the cards were priced competitively in line with Intel's focus on performance per dollar rather than raw numbers.

It has been known for some time that Intel plans to follow Arc Alchemist with Battlemage, and then eventually, Celestial GPUs, but these plans had appeared tentative lately. This was primarily due to the departure of Raja Koduri, the former head of Intel's Accelerated Computing Systems and Graphics department, at the end of March.

From the outset, the development of Intel Arc had been shaky, with multiple delays and poor optimization upon launch. Many wondered if Koduri's departure would spell the end of the range, but today's report suggests otherwise, indicating that Intel is more on track than many anticipated.

According to Taiwan's Commercial Times, Intel has reportedly come to an exciting understanding with TSMC, the world's largest semiconductor foundry. With growing demand for consumer graphics, including those for gamers and professionals, Intel is readying its next-gen chips. Intel Battlemage will be the first to arrive, based on the Xe2 architecture and manufactured on TSMC's 4nm process. Insider sources expect the release date to be in the second half of 2024. Intel Celestial will follow in the second half of 2026, based on a 3nm process and featuring Xe3 architecture.

It's reassuring to know that Intel hasn't given up on its graphics department. However, it appears that it will be well over a year before any new GPUs are released, which may cause it to miss the window to compete against AMD and Nvidia's current lineups.

Intel may not play a significant role in the current GPU market, but it's essential that they continue to innovate. Nvidia's dominance of the market allows them to charge premium prices, but the growing presence of Intel and AMD could provide real competition, which would ultimately benefit consumers.