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Intel to build chips for other companies with new foundry business

2021-03-24 18:40 by


After years of struggling to keep up with competitors, Intel will adopt their core strategy by making other companies' chips for them, new Chief Executive Pat Gelsinger said Tuesday. Intel largely has focused on making its own chips, but that'll change with the new and independent Intel Foundry Services (IFS) business unit.

IFS would compete for business from Apple, Google, Microsoft, and Qualcomm. Those four firms design their own chips, but since they do not own the facilities to actually make them, they turn to third-party foundries like TSMC that actually produce the components. The announcement comes during a global chip shortage that has affected companies that use plenty of chips from automobile firms to electronic companies.

Expanding into the foundry industry isn't really a huge jump as it does have the know-how and IP for such a business. What some might question, however, is its actual ability to fabricate these critical pieces of silicon, especially at 7nm processes, much less at 5nm. Intel boasts of its progress in developing its 7nm process but it's still under development nonetheless.

The company will spend $20 billion to open two new facilities in Arizona employing about 3,000 people in total.

Read more -here-


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