When Intel announced its IDM 2.0 strategy In general, especially during the European expansion in April, it did not disclose many details about the plan. However, now that the details have been announced, they look really ambitious: invest up to $100 billion in multiple states and spread across multiple facilities.
Intel has a multi-faceted plan with European fabs, according to Financial Times. Intel will build a TSMC-style wafer fab in a region. According to the British “Financial Times” report, the purpose is to build two stages, wait, and then build six stages, a total of eight stages.
Fabs are expensive. Intel is looking for a $20 billion semiconductor manufacturing plant somewhere in Europe and has some major government support (we don’t know if we’re talking about the first two stages, but given Intel’s output, we can speculate that we are). However, Intel’s continental European site has the following requirements: 1,000 acres of land, communication channels, and talent channels.
Intel said in an interview with the “Financial Times” that over time, it can build eight more stages. According to Intel, after that, the same area may develop into a semiconductor manufacturing base worth $100 billion.
But the establishment of leading semiconductor manufacturing facilities is not Intel’s final plan; Intel said that establishing a vertically integrated semiconductor supply chain is an important task.
Intel’s vice president of global regulatory affairs, Greg Slater, believes that Intel is fully capable of creating a full ecosystem project. He also believes that this project will benefit Europe.
According to the information we have, Intel management proposes to establish a vertically integrated supply chain with government subsidies in Europe. A vertically integrated supply chain plays a role in various economic modules. Will they work in IDM 2.0 mode? Only time will give the answer. In any case, the supply chain is always beneficial to a country.
Intel’s multi-faceted fab plans in Europe rely heavily on government subsidies. The company certainly has huge plans, but they rely on so many factors that the results are hard to imagine.
The modular approach of chip design allows Intel to use different process technologies to manufacture small chips or tiles for its products in different fabs inside and outside. Therefore, in 2023, the company will take advantage of it by outsourcing some of its products to TSMC This advantage.Even before that, it will release its codename Old bridge Computing GPUs will be produced using various manufacturing processes and will include building blocks from Intel, TSMC and Samsung foundries.
At the same time, Intel’s decision to enter the contract semiconductor manufacturing business shows that the company is confident in its ability to provide the best nodes in the future. At the same time, Intel needs its IFS business to align with TSMC and Samsung Semiconductor in scale.
At present, there are more questions than answers about Intel’s IFS strategy. The company only announced its intention to build more production capacity around the world and is mainly interested in lucrative advanced manufacturing technologies. At the same time, if Intel signs long-term supply contracts with customers such as the US Department of Defense, it is not clear how long Intel will be able to upgrade its fabs.