IDM 2.0 is
the Powerful Combination of Intel’s Internal Factory Network,
Third-party Capacity and New Intel Foundry Services
NEWS HIGHLIGHTS
- Announcing manufacturing expansion plans; beginning with ~$20
billion investment to build two new fabs in Arizona
- Intel 7 nanometer process development progressing well with
tape in of 7nm compute tile for “Meteor Lake” expected in the
second quarter of 2021
- Announcing Intel Foundry Services with plans to become a major
provider of foundry capacity in the U.S. and Europe to serve
customers globally
- Announcing plans for new research collaboration with IBM
- Bringing the spirit of Intel Developer Forum event back this
year with Intel Innovation event planned for October in San
Francisco
Today, Intel CEO Pat Gelsinger outlined the company’s path
forward to manufacture, design and deliver leadership products and
create long-term value for stakeholders. During the company’s
global “Intel Unleashed: Engineering the Future” webcast, 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 $20 billion investment to build two new factories (or
“fabs”) in Arizona. He also announced Intel’s plans to become a
major provider of foundry capacity in the U.S. and Europe to serve
customers globally.
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Intel’s newest factory, Fab 42, became
fully operational in 2020 on the company’s Ocotillo campus in
Chandler, Arizona. Fab 42 produces microprocessors using the
company’s 10nm manufacturing processes. In March 2021, Intel
announced a $20 billion investment to build out two new factories
(or “fabs”) on the Ocotillo campus. The company expects to begin
planning and construction activities this year. (Credit: Intel
Corporation)
More News and Resources: Engineering the Future (Press
Kit)
“We are setting a course 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 process with at-scale manufacturing customers can
depend 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 way possible for every category we compete
in.”
IDM 2.0 represents the combination of three components that will
enable the company to drive sustained technology and product
leadership:
- Intel’s global, internal factory network for at-scale
manufacturing is a key competitive advantage that enables
product optimization, improved economics and supply resilience.
Today, Gelsinger re-affirmed the company’s expectation to continue
manufacturing the majority of its products internally. The
company’s 7nm development is progressing well, driven by increased
use of extreme ultraviolet lithography (EUV) in a rearchitected,
simplified process flow. Intel expects to tape in the compute tile
for its first 7nm 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 enables the combination of multiple IPs or
“tiles” to deliver uniquely tailored products that meet diverse
customer requirements in a world of pervasive computing.
- Expanded use of third-party foundry capacity. Intel
expects to build on its existing relationships with third-party
foundries, which today manufacture a range of Intel technology –
from communications and connectivity to graphics and chipsets.
Gelsinger said he expects Intel’s engagement with third-party
foundries to grow and to include manufacturing for a range of
modular tiles on advanced process technologies, including products
at the core of Intel’s computing offerings for both client and data
center segments beginning in 2023. This will provide the increased
flexibility and scale needed to optimize Intel’s roadmaps for cost,
performance, schedule and supply, giving the company a unique
competitive advantage.
- Building a world-class foundry business, Intel Foundry
Services. Intel announced plans to become a major provider of
U.S.- and Europe-based foundry capacity to serve the incredible
global demand for semiconductor manufacturing. To deliver this
vision, Intel is establishing a new standalone 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
leading-edge process technology and packaging, committed capacity
in the U.S. and Europe, and a world-class IP portfolio for
customers, including x86 cores as well as ARM and RISC-V ecosystem
IPs. Gelsinger noted that Intel’s foundry plans have already
received strong enthusiasm and statements of support from across
the industry.
To accelerate Intel’s IDM 2.0 strategy, Gelsinger announced a
significant expansion of Intel’s manufacturing capacity, beginning
with plans for two new fabs in Arizona, located at the company’s
Ocotillo campus. These fabs will support the increasing
requirements of Intel’s current products and customers, as well as
provide committed capacity for foundry customers.
This build-out represents an investment of approximately $20
billion, which is expected to create over 3,000 permanent
high-tech, high-wage jobs; over 3,000 construction jobs; and
approximately 15,000 local long-term jobs. Today, Arizona Gov. Doug
Ducey and U.S. Secretary of Commerce Gina Raimondo participated
with Intel executives in the announcement. Gelsinger commented: “We
are excited to be partnering with the state of Arizona and the
Biden administration on incentives that spur this type of domestic
investment.” Intel expects to accelerate capital investments beyond
Arizona, and Gelsinger said he plans to announce the next phase of
capacity expansions in the U.S., Europe and other global locations
within the year.
Intel plans to engage the technology ecosystem and industry
partners to deliver on 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
market. These foundational technologies will help unleash the
potential of data and advanced computation to create immense
economic value.
Leveraging each company’s capabilities and talent in Hillsboro,
Oregon, and Albany, New York, this collaboration aims to accelerate
semiconductor manufacturing innovation across the ecosystem,
enhance the competitiveness of the U.S. semiconductor industry and
support key U.S. 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
industry event series. Gelsinger encouraged technology lovers to
join him at this year’s Intel Innovation event planned for October
in San Francisco.
For more information and to watch a replay of today’s webcast,
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 continuously work to advance the
design and manufacturing of semiconductors to help address our
customers’ greatest challenges. By embedding intelligence in the
cloud, network, edge and every kind of computing device, we unleash
the potential of data to transform business and society for the
better. To learn more about Intel’s innovations, go to
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 Arizona expansion,
plans and goals related 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 such as “anticipates,” “expects,”
“intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,”
“continues,” “may,” “will,” “would,” “should,” “could,” “strategy,”
“progress,” “path,” “vision,” “course,” “formula,” “accelerate,”
and “committed” and variations of such words and similar
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 relating to the benefits of Intel’s strategy;
the availability and benefits of future products and technology,
including with respect to Intel’s 7nm and future manufacturing
processes, packaging technology, and 2023 products; manufacturing
and design goals and progress; future internal manufacturing
volumes; external foundry usage and related benefits; future
manufacturing capacity including with respect to Intel’s foundry
business; investment returns and benefits; government incentives;
the nature, timing, and benefits of Intel’s manufacturing
expansion, including its Arizona expansion; 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 the 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 foundries, including risks of increased
costs, insufficient foundry capacity, and schedule delays;
increases in capital requirements and changes in capital investment
plans; construction delays or changes in plans due to business,
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 manage and allocate manufacturing capacity
successfully, delays in the development of new and competitive
manufacturing technologies, failure to compete successfully across
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 may not realize an adequate return
on its foundry business investments; adverse impacts of strategy
announcements on Intel’s business and business relationships; risks
that Intel’s planned research collaboration with IBM may not be
consummated or the anticipated benefits realized; as well as the
factors set forth in Intel’s earnings release dated January 21,
2021, which is included as an exhibit to Intel’s Form 8-K furnished
to the SEC on such date, and Intel’s SEC filings, including the
company’s most recent report on Form 10-K. Copies of Intel’s SEC
filings may be obtained by visiting Intel’s Investor Relations
website at www.intc.com or the SEC’s website at www.sec.gov. Intel
does not undertake, and expressly disclaims any duty, 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 may be required by law.
© Intel Corporation. Intel, the Intel logo and other Intel marks
are trademarks of Intel Corporation or its subsidiaries. Other
names and brands may be claimed as the property of others.
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Cara Walker Media Relations 503-696-0831
Cara.Walker@intel.com
Tushar Jain Investor Relations 408-653-9488
tushar.jain@intel.com
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