Intel spokesperson Bill Kircos said no TSMC-manufactured Atoms are on the immediate horizon, though he added that the companies have achieved several hardware and software milestones and said they would continue to work together.

Intel said last March it would port unspecified Atom processor cores to TMSC's technology platform, including processes, IP, libraries and design flows. The deal—the first in which Intel would transfer a processor technology outside to a silicon foundry—was widely seen as Intel's attempt to beef up its presence in the embedded space,where the architecture of ARM Holdings plc dominates.

The delay in moving Atom products into production at TSMC appears signal slower-than-expected progress on execution of Intel's strategy to grow revenue outside of the PC market by pushing its x86 architecture deeper into to the embedded market and elsewhere.