Intel (Intel) announced on the 23rd will spend $ 20 billion to build two new fabs in Ocotillo, Arizona, and the establishment of foundry business for other companies to manufacture chips, which represents Intel will be in direct competition with TSMC (2330). However, Intel also revealed that some of the required chips will be entrusted to TSMC foundry, but most retain their own production.
Set up a factory news to inspire Intel shares in the 23rd after-hours jumped about 6%. In comparison, TSMC ADR after hours fell nearly 4%.
Intel Chief Executive Officer Jensinger (Pat Gelsinger) since taking office for the first Time in public statements, is the release of this important news, on behalf of Intel will continue to focus on manufacturing, rather than a significant shift to outsourcing production, which will also enable Intel and TSMC to start direct competition.
Jessinger will first spend $ 20 billion to build two new factories in Arizona to support Intel’s attempts to break into the foundry business. Intel also plans to build more factories in the U.S., Europe and elsewhere, and Jessinger promises that the vast majority of the company’s chips will be produced in-house.
Intel Chief Executive Officer Jensinger (Pat Gelsinger).
Currently, Intel’s factories now lag behind TSMC and Samsung Electronics, the latter two manufacturers of chips for Intel’s competitive peers such as Supermicro, but also for Amazon, Apple and other large Intel customers to produce.
Jensinger said the plan will give Intel “a unique ability to have leadership products and leadership in the supply chain and cost structure in all parts of our business”, “we are ready to race, we will catch up, and then move to maintain leadership in the long term “.
Intel said it will be for IC design industry such as fabless semiconductor industry foundry, foundry subsidiary named “Intel Foundry Services” (Intel Foundry Services), led by senior vice president Thakur (Randhir Thakur).
Jaisingh said the foundry market size may reach 100 billion U.S. dollars by 2025, Intel will compete in this market, and produce a wide range of chips, including chips based on ARM technology. An Mou chip is mainly used in smart phones and other mobile devices, and has always competed with Intel’s favored x86 technology.
Intel 23 predicted that this year’s capital expenditure of up to $ 20 billion, higher than last year’s $ 14 billion, at the same time, the revenue of this year will be lower than Wall Street expectations.
For the advanced process delay problem, Intel said its latest manufacturing technology has progressed, Jaysinger said, “Although the 10 (nano) and 7 (nano) hindrance is embarrassing for a company like us, but now the repair is good”, “we understand where the problem “.
Jessinger also said that Intel will entrust some of the required chips to TSMC for foundry, including some of the most important products. Although this move is a step forward from the current, but the company will still carry out most of the production in-house.
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