SANTA CLARA, California – (BUSINESS WIRE) – Today, Intel CEO Pat Gelsinger described the company’s path to manufacturing, designing and delivering leadership products and creating long-term value for stakeholders. During the company’s global webcast “Intel Unleashed: Engineering the Future”, Gelsinger shared his vision for “IDM 2.0”, a major evolution of Intel’s integrated device manufacturing (IDM) model. Gelsinger announced significant manufacturing expansion plans, starting with an estimated investment of $ 20 billion to build two new factories (or “fabs”) in Arizona. He also announced Intel’s plans to become a major supplier of foundry capacity in the United States and Europe to serve customers worldwide.
More news and resources: Designing the Future (Press Kit)
“We are setting the way for a new era of innovation and product leadership at Intel, ”said Gelsinger. “Intel is the only company with the depth and breadth of software, silicon and platforms, packaging and processes with scale manufacturing that customers can count on for their next generation innovations. IDM 2.0 is an elegant strategy that only Intel can offer – and it is a winning formula. We will use it to design the best products and manufacture them in the best possible way for each category in which we compete. ”
IDM 2.0 represents the combination of three components that will enable the company to drive sustainable technology and product leadership:
- Intel’s global in-house network for scale manufacturing it is a key competitive advantage that allows for product optimization, improved economy and supply resilience. Today, Gelsinger reaffirms the company’s expectation to continue manufacturing most of its products in-house. The company’s 7 nm development is progressing well, driven by the increasing use of extreme ultraviolet lithography (EUV) in a streamlined and redesigned process flow. Intel expects to write to the computing block of its first 7 nm client CPU (code-named “Meteor Lake”) in the second quarter of this year. In addition to process innovation, Intel’s leadership in packaging technology is an important differentiator that allows the combination of multiple IPs or “blocks” to provide tailored products that meet the diverse requirements of customers in a world of fuzzy computing.
- Expanded use of third party smelting capacity. Intel hopes to build on its existing relationships with third-party foundries, which today manufacture a variety of Intel technologies – from communications and connectivity to graphics and chipsets. Gelsinger said he expects Intel’s involvement with third-party foundries to grow to include manufacturing a variety of modular parts in advanced process technologies, including products at the heart of Intel’s computing offerings for the customer and data center segments starting in 2023 This will provide the flexibility and scale needed to optimize Intel’s roadmaps for cost, performance, scheduling and delivery, giving the company a unique competitive advantage.
- Building a world-class foundry business, Intel Foundry Services. Intel has announced plans to become a major supplier of foundry capacity based in the United States and Europe to meet the incredible global demand for semiconductor manufacturing. To deliver this vision, Intel is establishing a new stand-alone business unit, Intel Foundry Services (IFS), led by semiconductor industry veteran Dr. Randhir Thakur, who will report directly to Gelsinger. IFS will be differentiated from other foundry offerings with a combination of state-of-the-art packaging and process technology, committed capacity in the US and Europe and a world-class IP portfolio for customers, including x86 cores, as well as the ARM and RISC-V ecosystem. IPs. Gelsinger noted that Intel’s foundry plans have already received great enthusiasm and statements of support from the entire industry.
To accelerate Intel’s IDM 2.0 strategy, Gelsinger announced a significant expansion of Intel’s manufacturing capacity, starting with plans for two new factories in Arizona, located on the company’s Ocotillo campus. These factories will meet the growing requirements of Intel’s current products and customers, as well as provide committed capacity to foundry customers.
This construction represents an investment of approximately US $ 20 billion, which is expected to create more than 3,000 permanent high-tech, high-wage jobs; more than 3,000 construction jobs; and approximately 15,000 local long-term jobs. Today, Arizona Governor Doug Ducey and U.S. Secretary of Commerce Gina Raimondo participated in the announcement with Intel executives. Gelsinger commented: “We are excited to partner with the state of Arizona and the Biden administration on incentives that encourage this type of domestic investment. ”Intel hopes to accelerate capital investments beyond Arizona, and Gelsinger said it plans to announce the next phase of capacity expansions in the United States, Europe and other global locations within the year.
Intel plans to engage the technology ecosystem and industry partners to fulfill its IDM 2.0 vision. To that end, Intel and IBM today announced plans for an important research collaboration focused on creating next generation logic and packaging technologies. For more than 50 years, the two companies have shared a deep commitment to scientific research, world-class engineering and a focus on bringing advanced semiconductor technologies to the market. These basic technologies will help unlock the potential of data and advanced computing to create immense economic value.
Leveraging the capabilities and talents of each company in Hillsboro, Oregon and Albany, New York, this collaboration aims to accelerate semiconductor manufacturing innovation across the ecosystem, increase the competitiveness of the US semiconductor industry and support major US government initiatives. USA.
Finally, Intel is bringing back the spirit of its popular Intel Developer Forum event this year with the launch of Intel On, a new series of industry events. Gelsinger encouraged tech lovers to join him at this year’s Intel Innovation event, planned for October in San Francisco.
For more information and to watch today’s webcast replay, visit the Intel Newsroom or Intel’s investor relations website.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continually work to improve semiconductor design and manufacturing to help meet our customers’ biggest challenges. By incorporating intelligence into the cloud, network, edge and all kinds of computing devices, we unlock the potential of data to transform business and society for the better. To learn more about Intel’s innovations, visit newsroom.intel.com and intel.com.
Forward-Looking Statements
Statements in this press release that refer to future plans and expectations, including with respect to Intel’s strategy, internal and external manufacturing plans, manufacturing expansion and investment plans, including Intel’s anticipated expansion in Arizona, related plans and goals to Intel’s foundry business, future products and technology, and Intel’s planned research collaboration with IBM are forward-looking statements that involve a number of risks and uncertainties. Words like “anticipate”, “wait”, “intend”, “aim”, “plan”, “believe”, “search”, “esteem”, “continue”, “can”, “will”, “would,” “Should”, “could”, “strategy”, “progress”, “path”, “vision”, “course”, “formula”, “accelerate” and “committed” and variations of such similar words and expressions are intended to identify such forward-looking statements. Statements that refer to or are based on estimates, forecasts, projections and uncertain events or assumptions, including statements regarding the benefits of Intel’s strategy; the availability and benefits of future products and technology, including with respect to processes 7 nm and future manufacturing, packaging technology and Intel 2023 products; manufacturing and design goals and progress; future in-house manufacturing volumes; use of external foundry and related benefits; future manufacturing capacity, including in relation to business foundry products, returns and investment benefits clothing; government incentives; the nature, timing and benefits of Intel’s manufacturing expansion, including its expansion in Arizona; benefits related to Intel’s foundry business; foundry service offerings, including IP offerings; benefits related to Intel’s planned research collaboration with IBM; supply expectations; market opportunity; anticipated trends in Intel’s businesses or markets relevant to them; and future announcements also identify forward-looking statements.
Such statements are based on management’s current expectations and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Important factors that could cause actual results to differ materially from the company’s expectations include, among others, Intel’s failure to realize the anticipated benefits of its strategy and plans; risks related to increased use of external smelters, including risks of increased costs, insufficient smelting capacity and delays in the schedule; increases in capital needs and changes in capital investment plans; construction delays or changes in plans due to commercial, economic or other factors; risks related to Intel’s foundry business plans, including risks of failure of Intel’s foundry service offerings to achieve or maintain market acceptance or demand, inability to successfully manage and allocate manufacturing capacity, delays in technology development new and competitive manufacturing processes, failure to compete successfully between factors such as technology, capacity, price, ease of use, quality and customer satisfaction, deterioration in demand for global foundry services, actions taken by competitors, lack of ecosystem support and the risk that Intel will not achieve an adequate return on its investment in the foundry business; adverse impacts of strategy announcements on Intel’s business and commercial relationships; risks that Intel’s planned research collaboration with IBM will not be consummated or that the anticipated benefits will be realized; as well as the factors set out in the Intel income statement dated January 21, 2021, which is included as an attachment to Intel Form 8-K filed with the SEC on that date, and Intel’s filings with the SEC, including the most recent report company’s recent report on Form 10-K. Copies of Intel’s SEC files can be obtained by visiting Intel’s Investor Relations website at www.intc.com or the SEC website at www.sec.gov. Intel does not undertake and expressly disclaims any obligation to update any statement made in this press release, whether as a result of new information, new developments or otherwise, except to the extent that disclosure is required by law.
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