Intel doubles down on manufacturing with $20 billion investment, will also make chips for other companies

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Updated: Mar 25, 2021 10:08 AM

The new strategy was announced by Intel CEO Pat Gelsinger at the company's global "Intel Unleashed: Engineering the Future" webcast.

Intel, Intel IDM 2.0, Intel new strategy, intel announcement, intel unleashedChipmaker Intel has announced IDM 2.0, an updated version of its integrated device manufacturing (IDM) model. (Reuters Image)

Intel IDM 2.0: Chipmaker Intel has announced IDM 2.0, an updated version of its integrated device manufacturing (IDM) model, under which it would enhance its manufacturing plans. The company is set to begin this by investing about $20 billion for the building of two factories in Arizona. The new strategy was announced by Intel CEO Pat Gelsinger at the company’s global “Intel Unleashed: Engineering the Future” webcast, and it comprises three parts, with the first being Intel’s in-house manufacturing network which would continue to be an important part of the design and production of its chips.

The second part is that the chipmaker giant would enhance its use of external foundries for the production of its products, including those that are at the centre of Intel’s offerings for enterprise as well as consumer chips, and this would begin in 2023, it said.

The third one was a major announcement, however. Intel would be setting up a new standalone unit – Intel Foundry Services or the IFS – and it would look after the manufacturing of chips for other commercial customers. The IFS would cater to customers like “x86 cores as well as ARM and RISC-V ecosystem IPs”, the company announced. The foundry service would be based in Europe and the US, and its partners include Qualcomm, Google, IBM and Microsoft.

The two new factories would be built at the Ocotillo campus of Intel, and would support the increasing needs of the company’s current customers and products, and it would also provide limited capacity for foundry customers.

For its IDM 2.0 vision, Intel has also decided to partner up with industry partners, and has announced plans for a research collaboration with IBM, through which the companies would create advanced logic and packaging technologies.

Intel has also announced that it would be bringing back the Intel Developer Forum, but in a modified manner. The Intel Innovation event would be held in October this year in San Francisco as a part of Intel On industry event series.

Modifying and expanding its business has become important for Intel, which has been standing at a juncture where it could become obsolete due to the increased competition from other chipmakers, as well as the new competition emerging from device manufacturers like Apple choosing to produce their own chips. Amid this, Intel has taken a two-pronged approach, it seems, to restore its credibility – one being the updation of its strategy, and the other being hitting out of Apple and its latest Macs which marked Cupertino’s move away from the chipmaker.

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