Master Chipmaker Intel Invests Billions In New Factories
Intel Corp has revealed it will invest billions of dollars in new manufacturing facilities and will launch its own foundry business to make chips for other companies.
The aggressive spending strategy will see Intel pour $20 million into two new factories in Arizona and a new branch of the company called Intel Foundry Services.
Intel also says it intends on opening more factories in Europe, US and beyond.
New CEO Pat Gelsinger announced the plans and revealed it was part of a new ‘IDM 2.0’ strategy to expand Intel’s manufacturing and reach.
Gelsinger said the strategy will give Intel “a unique ability to have leadership products, with the leadership supply chain and leadership cost structure across every portion of our business.”
“We are off to the races, we’re going to be at parity and then to move to sustained leadership, over time,” he added.
The announcements come at a troubling time for the master chipmaker, after Apple dumped the company after a 15-year partnership providing core processors for Mac computers.
The global chip shortage has also been an interesting Catch-22 for Intel – demand for semiconductors have never been higher but the company simply cannot meet the requirements as supply scarcity cripples the industry.
But the addition of new Intel foundries could be a solution to this, as it will offer companies new avenues to source chips which are crucial to the manufacturing of items such as smartphones and gaming consoles.
The plans will also put Intel firmly in competition with Taiwan Semiconductor Manufacturing Co, which is the world’s most advanced chipmaker.