Intel is investing $ 20 billion in the United States and accelerating foundry services

In the titleIntel Since February, Pat Kelsinger has been printing his footprint: it’s one Strategy «IDM 2.0. As some analysts have suggested, instead of abandoning production of home semiconductors, Intel will integrate vertically and develop its foundry service operations in the United States and Europe.

During a global webcast, Pat Kelsinger shared his ‘ITM 2.0’ vision, announcing major expansion plans in production capacity, starting with a $ 20 billion investment to build two new factories in Arizona. So other investments are already planned. He also announced Intel’s intention to provide a major foundry service in the United States and Europe to serve customers around the world.

IDM 2.0 strategy refers to a combination of three components: making most of its products at home; Excessive use of external founders for certain products; Finally become a world class foundry service provider.

Pat Kelsinger reaffirmed the company’s desire to continue producing most of its products at home. Intel points out that the development of its 7nm technology is progressing well, with the increased use of Extreme UV Lithography (EUV) and the streamlined process flow. Intel expects to launch its first 7nm processor (named “Meteor Lake”) in the second quarter of this year. In addition to front-end innovations, Intel also relies on its expertise in packaging technologies, which is an important difference.

Intel plans to build its current relationship with third-party foundries, which today builds Intel technologies – from communication and connection circuits to graphics circuits and chipsets. Pat Kelsinger said Intel will expand its partnership with third-party companies, including advanced technologies, including products at Intel’s Computing Offers Center for PC and PC segments. Data centers from 2023.

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Creating Intel Foundry Services

Intel has announced its intention to become a leading provider of foundry services based in the United States and Europe to meet global demand for semiconductor products. To realize this vision, Intel is creating a new business unit, Intel Foundry Services (IFS), led by Randhir Thakur. IFS wants to differentiate itself from other foundry offerings with advanced pre-finished and packaging technologies, manufacturing capabilities in the US and Europe and a portfolio of x86 cores and world-class IP modules for clients including ARM and RISC. -V Ecosystems. In its presentation, Intel highlights a foundry market that will surpass $ 100 billion by 2025, with a large share of mature technologies (more than 10 nm by 2025). Clearly, Intel does not want to position itself in a conflict with DSMC. But is there a way for the American to compete with the world’s leading founder?

In order to accelerate Intel’s ITM 2.0 strategy, Kelsinger announced that it will significantly expand Intel’s productivity by starting two new plants in Arizona. These factories not only support the production of Intel products, but also provide productivity to the foundry customers. This reinforcement represents an investment of approximately $ 20 billion, which is expected to create more than 3,000 permanent high-tech jobs; More than 3,000 jobs in the construction industry; And about 15,000 long-term local jobs.

« We are pleased to partner with the State of Arizona and the Biden Administration on these types of national investment stimulus incentives. Pat Kelsinger commented.

Beyond Arizona, Intel plans to accelerate its investment and announce the next phaseExpansion of its production capabilities In the United States, In Europe And other parts of the year.

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R&D collaboration with IBM

Intel plans to engage technology environmental and industry partners to realize its ITM 2.0 vision. To this end, Intel and IBM have announced a significant research collaboration focusing on developing next-generation logic and packaging technologies. For more than 50 years, both companies have focused on bringing scientific research, world-class engineering and advanced semiconductor technologies to market. By upgrading the capabilities and capabilities of each company in Hillsboro, Oregon and Albany, NY, this collaboration aims to accelerate innovation in semiconductor manufacturing across the environment, enhance the competitive semiconductor industry, and support the U.S. government’s industrial policy initiatives.

Finally, Intel expects to reach $ 76.5 billion in revenue this year ($ 72 billion, excluding 4.5 billion in revenue for the SK Hinix acquisition memory operation), against the 2020 record of $ 77.9 billion. Despite strong PC demand, with double-digit growth, PC revenue will be reduced by a shortage of complex third-party components, which means the company is working to mitigate its distribution chain partners, underscoring the US company.

« 2021 is the year of change. We are actively working with our supply chain partners and are developing our unique production capabilities to address industry-wide component shortages. Given the incredible demand for information technology, the strength of our ITM 2.0 strategy and the technological investments we make, I believe Intel’s best days are ahead of us. Pat Kelsinger finished.

Harrison Matthews

 "Evil musicaholic. Web fanatic. Communicator. Twitter practitioner. Travel lover. Food advocate."

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