Intel will spend $20 billion on chip plants to challenge Asian rivals

Intel Corp takes the chip manufacturing industry seriously and prevents intense competition from Asian competitors. The new CEO of the company announced plans to divide up to $20 billion in construction projects in Arizona to open its factories to external clients.

Reuters has reported that CEO Pat Gelsinger has decided on Tuesday to restore the credibility of Intel after delays in manufacture have been sent down shares last year. This approach directly challenges Taiwan's Semiconductor Manufacturing Co Ltd (TSMC) and Korea's Samsung, two other companies in the world that can produce the most up-to-date chips.

Intel is one of the few other semiconductor companies that design and produce their own chips. Contract manufacturers are dependent on rival chip designers like Qualcomm Inc and Apple Inc.

Gelsinger stated that Intel "fully solved" its problem with its latest manufacturing technology in an interview with Reuters and "all systems go" on chips for 2023. It is now planning a huge expansion of production.

This includes spending $20 billion on the creation of 3,000 permanent jobs for two new factories on the current campus in Chandler, Arizona. Intel will then work in the US and in Europe on future locations, said Gelsinger.

Intel will make its own chips using these facilities, but will also open them for foreign clients in the chip sector, what is known as a "foundry" business model. Instead of the old or the focused technologies in which some manufacturers such as GlobalFoundries are focused, Gelsinger said the new factories would focus on the state of the art computing chip manufacturing.

Gelsinger added that Intel has aerated customers for the new factories, but was unable to reveal their names: "We are totally committed to lead process technology capabilities for both industry and our customers."

Post a Comment

Please do not enter any spam link in the comment box.