Intel invests $20 billion into new factories, will produce chips for other companies
Intel has a new CEO, Pat Gelsinger, and he’s not losing any time to make some massive modifications. On the firm’s “Engineering the Future” announcement as we speak, Gelsinger introduced plans to outsource extra of Intel’s chip manufacturing to third-party foundries; a $20 billion funding into two new fabs in Arizona; and a new department of the corporate known as Intel Foundry Providers, which will see Intel’s foundries produce chips for other companies.
The bulletins are a part of a new “IDM 2.0” technique for Intel’s design and manufacturing, which is made up of three elements. First, there’s Intel’s in-house manufacturing, which will proceed to function a key a part of Intel’s design and manufacturing of chips. Second, there’s an expanded use of exterior foundries, together with TSMC, Samsung, and GlobalFoundries, for manufacturing of “merchandise on the core of Intel’s computing choices” for each shopper and enterprise chips, beginning in 2023.
And third, there’s the newly introduced Intel Foundry Providers, which will see Intel open its gates to deal with manufacturing of chips for other business clients, led by Randhir Thakur. Intel Foundry Providers is a “standalone foundry enterprise unit,” and it will develop x86, Arm, and RISC-V core chips for exterior purchasers utilizing Intel’s manufacturing expertise. And crucially for authorities work, Intel’s foundries will be situated within the US and Europe, a profit that rivals like TSMC don’t have. Companions embody IBM, Qualcomm, Microsoft, Google, and extra.
The growth of Intel’s manufacturing efforts — which embody a $20 billion funding into new fabs in Arizona that will increase Intel’s present Ocotillo campus — come at a vital time: the continuing international semiconductor scarcity implies that demand for chips is at an all-time excessive. Including Intel’s foundries (and its new Foundry Providers enterprise) might assist open up new avenues for companies to supply the chips which might be important for the whole lot from new online game consoles to new pickup vans. Gelsinger additionally teased that extra foundries are within the works, promising extra bulletins of expansions within the US, Europe, and elsewhere on this planet later this yr.
Intel additionally introduced a new R&D collaboration with IBM “centered on creating subsequent–technology logic and packaging applied sciences.” Particulars are slim in the meanwhile, nonetheless.
Lastly, Intel introduced plans to convey again a religious successor to its Intel Developer Discussion board convention with a new Intel Innovation occasion deliberate for October in San Francisco this fall as a part of a new Intel On collection of occasions.
Intel stands at a vital junction proper now: the corporate faces elevated competitors from companies like AMD and Apple’s Arm-based M1 collection of chips. On the identical time, it’s seen main shifts in management and delays of generations of its chips, all whereas being outpaced by rivals like TSMC by way of manufacturing methods. At the moment’s bulletins signify Gelsinger’s first massive strikes to attempt to proper the ship.
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