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5 Things To Know About Intel’s Game-Changing IDM 2.0 Strategy

Intel is making a $20 billion manufacturing expansion in the U.S. while also increasing use of external foundries as part of a ‘major evolution’ in its manufacturing model, which CEO Pat Gelsinger says will result in greater chip capacity and a return to ‘unquestioned leadership.’

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Better Performance, Supply At A ‘Superior Cost Structure’

Intel CEO Pat Gelsinger on Tuesday said the company will return to “unquestioned leadership” with its newly revealed “IDM 2.0” strategy that will “significantly” expand the company’s manufacturing capacity and dramatically change the way it makes chips.

While the new strategy consists of three key initiatives, there are many moving parts in what Gelsinger called a “major evolution” in Intel’s integrated device manufacturing model, where the company produces the chips it designs.

[Related: Partners: AMD EPYC Milan Widens Gap Over Intel, Builds Trust ]

With the IDM 2.0 strategy, the Santa Clara, Calif.-based company will build new manufacturing fabs, expand its use of external foundries like TSMC to make chips and launch its own foundry services business, which will manufacture chips designed by other companies like Qualcomm.

“Our IDM 2.0 plans will put us on a path to restore process performance leadership and build on our leadership packaging technologies, delivering our customers leadership products in every category that we participate in, ensure superior capacity and supply resilience with flexibility leveraging our internal and external capacity, all with a superior cost structure,” Gelsinger said in Intel’s Tuesday webcast.

What follows are five important things to know about Intel’s IDM 2.0 strategy, from its manufacturing expansion plans in the U.S. and across the world to how it plans to use external foundries to create competitive, next-generation processors.

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