Despite delaying its 14nm processor mass production to the fourth quarter of 2014, Intel is still set to showcase its 14nm processors at Intel Developer Forum (IDF) in San Francisco in September as originally scheduled, according to sources from the upstream supply chain. Intel will also unveil its 10nm wafers at the show.

Intel will release its 14nm Core M-series processors in the fourth quarter and 14nm Broadwell-based processors in January 2015, the sources noted.

Because of weaker-than-expected yields, high 22nm processor inventories, and poor PC demand, Intel has postponed 14nm processor production, which is planned to be conducted at its Fab 42 in Arizona, the US, the sources said.

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) is set to accelerate the mass production of its 20nm process in the third quarter and will announce a 16nm FinFET process in 2015 with a 10nm process set to enter mass production in 2016. TSMC has also started developing a 7nm process, the sources said.

Intel recently acquired wafer orders from Panasonic. Although most market watchers believe the orders are meant for Intel to fill up its empty capacity, some believe Intel may become more aggressive about landing wafer OEM orders in the future after having a reshuffling of top executives recently.

Intel is now targeting orders for Apple's A9 processor and could become a big threat against the current OEM TSMC because of Intel and Apple's tight relationship, the sources added.