To challenge TSMC, Intel will expand production globally

Jiwei Net news, on December 27, according to China Taiwan’s “Economic Daily” report, Intel has actively expanded its global presence after launching its “IDM 2.0” strategy. According to reports from the industry, Intel’s internal plan is to increase the production capacity of its fabs by 30% within five years before 2026, including the addition of production capacity in Ireland, Israel, and the United States from 2023 to 2024, in order to force TSMC.

Based on the large production expansion, the competition and cooperation between Intel and TSMC may become more intense, especially Intel continues to strengthen the pace of advanced manufacturing. With the continuous expansion of its own production capacity, the outside world originally estimated that Intel will begin to entrust its central processing unit (CPU) orders to TSMC’s 3nm production plan and order volume from 2023, which has attracted much attention.

Compared with TSMC’s new plants in the United States and Japan, the overseas layout has just started, and the European new plants have not been finalized. Intel’s global layout is faster. Its wafer production bases include states such as Arizona and Oregon in the United States, Ireland in Europe, and Israel at the border of Europe and Asia, mainland China in Asia, and has assembly and testing related factories in New Mexico, Costa Rica and Malaysia.

The report quoted foreign media sources as saying that the blueprint for Intel’s European expansion plan is gradually becoming clear, and the fab may be located in Germany (the detailed location is not determined), and the R&D and design center will be built in France, and the packaging and testing plant will be built in Italy. According to industry news, Intel will build at least one wafer fab in the United States and Europe, and will find a location to build a new advanced packaging plant, so as to achieve a 30% increase in production capacity by 2026. However, in response to this rumor, Intel China Taiwan branch responded: “I have not heard of it.”

Source: Economic Daily

Intel’s previously announced IDM 2.0 strategy has three main directions: one is capacity expansion, emphasizing that the company will continue to produce most products in-house; the other is to expand the provision of foundry services to become local foundries in the Americas and Europe The main supplier of production capacity. To this end, it has also established an independent business unit, Intel Foundry Services (IFS); third, it will expand the use of third-party foundry capacity including TSMC.

In order to strengthen its competitiveness, Intel’s capital expenditure this year is expected to range from 18 billion to 19 billion U.S. dollars, and next year’s capital expenditure is expected to increase to 25 to 28 billion U.S. dollars, an increase of at least 30%. At the same time, TSMC’s capital expenditures are not hesitating. It is expected to spend 30 billion US dollars this year and 100 billion US dollars in three years.

Earlier, Intel has announced that it will invest 20 billion U.S. dollars to build two new fabs in the Ocotillo campus in Arizona, USA. The plant is not far from its existing plants in the same state. Foreign media said that if the company builds a wafer fab in Germany, the estimated cost will exceed 20 billion U.S. dollars, while the cost of building a packaging and testing plant in Italy is about 10 billion U.S. dollars.

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