Intel is planning to spend US$20 billion into building two new factories in Arizona, while restarting its foundry business.
Intel CEO Pat Gelsinger said on Tuesday that the foundry market will grow to be worth US$100 billion in 2025. The US chip giant will secure production facilities in Europe and US to meet global demand, the CEO said.
Intel will also apply extreme ultraviolet (EUV) technology to offer advanced process and packaging services to its customers, he said.
Intel Foundry Services, the newly formed foundry business unit, will report directly to the CEO. Gelsinger said.
The two new factories in Arizona will aim to start production in 2023.
Intel’s announcement comes at at time when US and Europe are stressing the need to build their own supply chain in semiconductors in light of the recent global shortage.
US is planning to provide incentive for semiconductor companies like Intel to produce and research semiconductors in American soil through the Chips for America Act.
Gelsinger said Intel will be targeting US and European customer in its foundry business. Its plan to restart foundry received support from companies such as Amazon, Cisco, Ericsson, Google, Qualcomm, Microsofot, IBM and IMEC, he stressed.
Intel had a comprehensive IP portfolio which includes x86 core, Arm and RISC-V as well as advanced process and 3D packaging technology, Gelsinger stressed. It will partner with Cadence and Synopsys to offer design tool support for its customers. Intel will work with IBM to continue to develop advanced chip and packaging technologies, the CEO said.
Intel’s 7-nanometer CPU __ dubbed Metor Lake __ will go into tape-in in the second quarter, Gelsinger said. The US chip giant will also work to outside foundries __ TSMC, Samsung and UMC __ to meet demand from the current chip shortage and roll out of compute chips in 2023.