Intel invests $20 billion into new factories, will produce chips for other companies
The expansion of Intel’s production efforts– that include a $20 billion financial investment into new fabs in Arizona that will broaden Intel’s existing Ocotillo campus– come at a crucial time: the continuous global semiconductor shortage indicates that demand for chips is at an all-time high. Including Intel’s foundries (and its new Foundry Services business) could assist open new avenues for business to source the chips that are necessary for everything from brand-new video game consoles to new pickup trucks. Gelsinger also teased that more foundries remain in the works, appealing extra announcements of expansions in the US, Europe, and elsewhere in the world later on this year.
Intel likewise revealed a brand-new R&D collaboration with IBM “focused on developing next– generation reasoning and product packaging innovations.” Details are slim at the moment, however.
And 3rd, there’s the freshly announced Intel Foundry Services, which will see Intel open its gates to deal with production of chips for other commercial customers, led by Randhir Thakur. Intel Foundry Services is a “standalone foundry company unit,” and it will establish risc-v, arm, and x86 core chips for external customers utilizing Intel’s production innovation. And most importantly for federal government work, Intel’s foundries will be located in the United States and Europe, an advantage that competitors like TSMC don’t have. Partners include IBM, Qualcomm, Microsoft, Google, and more.
Intel has a brand-new CEO, Pat Gelsinger, and he’s not squandering at any time to make some huge modifications. At the company’s “Engineering the Future” statement today, Gelsinger announced strategies to outsource more of Intel’s chip production to third-party foundries; a $20 billion investment into 2 new fabs in Arizona; and a brand-new branch of the business called Intel Foundry Services, which will see Intel’s foundries produce chips for other business.
The announcements belong to a new “IDM 2.0” technique for Intel’s style and manufacturing, which is made up of 3 parts. There’s Intel’s internal production, which will continue to serve as a key part of Intel’s design and production of chips. Second, there’s an expanded use of external foundries, including TSMC, Samsung, and GlobalFoundries, for production of “products at the core of Intel’s computing offerings” for both customer and business chips, starting in 2023.
There’s Intel’s in-house production, which will continue to serve as a key part of Intel’s style and production of chips. Intel Foundry Services is a “standalone foundry organization unit,” and it will establish x86, Arm, and RISC-V core chips for external customers utilizing Intel’s manufacturing innovation. The expansion of Intel’s manufacturing efforts– which consist of a $20 billion financial investment into brand-new fabs in Arizona that will expand Intel’s existing Ocotillo campus– come at a critical time: the ongoing worldwide semiconductor lack suggests that need for chips is at an all-time high.
Intel stands at an important junction today: the business faces increased competitors from companies like AMD and Apple’s Arm-based M1 series of chips. At the same time, it’s seen major shifts in management and hold-ups of generations of its chips, all while being outpaced by competitors like TSMC in regards to production techniques. Today’s announcements represent Gelsinger’s very first huge relocate to try to right the ship.
Intel announced plans to bring back a spiritual follower to its Intel Developer Forum conference with a new Intel Innovation event planned for October in San Francisco this fall as part of a brand-new Intel On series of occasions.