We recently reported on Intel's goal to launch their 7 nm node in 2023 which would put them on track to directly compete with TSMC's 3 nm node. It would seem like Intel has partially accepted defeat according to a recent DigiTimes report which alleges that Intel has signed a deal with TSMC to mass-produce 3 nm processors starting H2 2022. The report goes on to detail an arrangement where TSMC manufacturers the bulk of Intel processors with in-house production expected to continue albeit at lower quantities. This arrangement would also see Intel and TSMC cooperate on 2 nm products. If this deal turns out to be real Intel would become TSMC's second-largest customer after Apple.