Intel unveils its Integrated Direct Manufacturing strategy aka IDM 2.0

Intel CEO Pat Gelsinger today outlined the way the company is going to manufacture, design and deliver cutting-edge products and create long-term value for stakeholders. During the company's global webcast “Intel Unleashed: Engineering the Future”, Mr. Gelsinger shared his vision for “IDM 2.0”, a major evolution of Intel's integrated device manufacturing (IDM) model.

Mr. Gelsinger has announced major 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 capabilities in the United States and Europe to serve customers around the world.

Mr. Gelsinger said

“We are setting the course for a new era of product innovation and leadership at Intel. Intel is the only company with the depth and breadth of software, silicon and platforms, packaging and process with large-scale manufacturing that customers can rely on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver - and it's 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, details

IDM 2.0 is the combination of three elements that will allow the company to ensure sustainable leadership in technology and products:

1. Intel's global network of in-house factories for large-scale manufacturing is a key competitive advantage that helps optimize products, as well as improve economics and supply resilience. Today, Mr. Gelsinger reaffirmed the company's commitment to continue to manufacture the majority of its products in-house. The development of the 7nm technology is progressing well, with the enhanced use of Extreme Ultraviolet Lithography (EUV) in a revamped and streamlined process.

Intel plans to register the compute tile of its first 7nm client processor (codenamed "Meteor Lake") in the second quarter of this year. Along with process innovation, Intel's leadership in packaging technology is an important differentiator that allows multiple IPs or tiles to be combined to provide unique bespoke products that meet various requirements. customers in a world where IT is omnipresent.

2. Increased capacity utilization of third-party foundries. Intel intends to build on its existing relationships with third-party foundries, which today manufacture a range of Intel technologies, from communications and connectivity to graphics and chipsets.

Mr. Gelsinger said he expects Intel's engagement with these third-party foundries to expand to include manufacturing a range of modular tiles on advanced process technologies, including core products. IT offerings from Intel, for both customers and data centers, starting in 2023. This commitment will provide the increased flexibility and scale needed to optimize Intel's cost roadmaps, performance, schedule and supply, giving the company a unique competitive advantage.

3. Construction of a leading global foundry, Intel Foundry Services. Intel has announced its intention to become a major supplier of foundry capabilities in the United States and Europe to meet the huge global demand for semiconductor manufacturing. To achieve this vision, Intel will create a new stand-alone business unit, Intel Foundry Services (IFS), led by semiconductor industry veteran Dr. Randhir Thakur, who will report directly to Mr. Gelsinger.

IFS will set itself apart from other foundry offerings by the combination of state-of-the-art process and packaging technology, committed capability in both the US and Europe, and a renowned IP portfolio worldwide for customers, including x86 cores as well as ARM and RISC-VM ecosystem IPs Gelsinger, noted that Intel's foundry projects have already garnered great enthusiasm and multiple support from the entire sector.

To accelerate Intel's IDM 2.0 strategy, Pat Gelsinger announced a significant expansion of its manufacturing capacity, starting with two factories (or “fabs”) in Arizona on the company's Ocotillo campus. These factories will help meet the growing demands of Intel's current products and customers, as well as provide in-house capabilities for the founder's customers.

This installation represents an investment of around 20 billion dollars, and should create more than 3,000 permanent and high-paying jobs in high-tech; more than 3,000 jobs in the construction sector; and approximately 15,000 long-term local contracts.

Today, Arizona Governor Doug Ducey and US Secretary of Commerce Gina Raimondo participated in the announcements, along with representatives from Intel. Pat Gelsinger commented:

“We are delighted to partner with the state of Arizona and the Biden administration and to work together to find incentives to encourage these domestic investments. “

Intel hopes to accelerate capital investment beyond Arizona. Mr. Gelsinger also said he plans to announce the next phase of expansion to the United States, Europe and other global locations later this year.

Intel plans to involve the technological ecosystem and its industrial partners to realize its IDM 2.0 vision. For example, Intel and IBM today announced that they are launching significant collaborative research to create the next generation of logic and packaging technologies. For more than 50 years, the two companies have shared a common commitment to scientific research, advanced engineering and together aimed to bring advanced semiconductor technologies to the market. These two fundamental technologies will help unlock the potential of advanced data 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, to strengthen the competitiveness of the US semiconductor industry and to support key US government initiatives.

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. Mr. Gelsinger encouraged tech enthusiasts to join him at this year's Intel Innovation event, scheduled for October in San Francisco.

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