Intel puts $20B into major chip manufacturing move

Intel detailed plans to drastically increase its semiconductor manufacturing facilities, including spending $20 billion on factories in the US and the creation of a standalone foundry division charged with boosting capacity for third parties.

At an event detailing its IDM2.0 strategy, Intel’s new CEO [1] Pat Gelsinger (pictured) announced plans to build two new factories in the state of Arizona and create a “world class foundry business”.

Intel Foundry Services will be charged with becoming a “major provider of US and Europe-based capacity to serve the incredible global demand for semiconductor manufacturing,” the company noted.

Alongside the investment revealed yesterday (23 March), Intel plans further expansion plans centred on US and European manufacturing capacity within 12 months.

“A key challenge is access to manufacturing capacity,” Gelsinger added. “Intel is in a unique position to rise to the occasion and meet this growing demand while ensuring a sustainable and secure supply of semiconductors for the world.”

The move comes at a time when authorities [2] in the US and Europe [3] are seeking to reduce dependency on imports of semiconductors from Asia, along with a global chip shortage [4].

Ericsson, Qualcomm, Google and Microsoft were among the companies speaking out in support of Intel’s foundry expansion.

Gelsinger said in the wider IDM2.0 strategy, Intel would continue to manufacture the majority of its own chips internally, but plans to increase its use of third-party facilities for several components including those for “products at the core of Intel’s computing offerings for both client and data centre segments”.

[1] https://www.mobileworldlive.com/featured-content/home-banner/intel-lines-up-ceo-switch
[2] https://www.mobileworldlive.com/featured-content/top-three/us-tipped-to-push-for-domestic-chips
[3] https://www.mobileworldlive.com/devices/news-devices/european-alliance-eyes-larger-portion-of-chips
[4] https://www.mobileworldlive.com/devices/news-devices/samsung-hit-by-qualcomm-chip-shortage

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