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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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Intel Will Expand Use Of Foundries Like TSMC To Produce Chips

While Intel plans to continue to build the majority of its products using its own fabs, Gelsinger said the company will ramp up use of external foundries like TSMC and Samsung to ensure that the chipmaker can “deliver the best products in every category that we participate in.”

Gelsinger said Intel’s use of external foundries isn’t new: The company has already been using foundries to make chips for communications, connectivity, graphics and chipsets.

But the new IDM 2.0 strategy means that Intel will turn to external foundries for top products the company had previously manufactured in-house, according to Gelsinger. That includes CPUs for servers and PCs coming out in 2023 that will rely on TSMC.

Gelsinger said Intel is increasing its use of foundries across the board: not just TSMC and Samsung but also GlobalFoundries and UMC.

“This will provide us with the increased flexibility and scale we need to optimize our roadmaps for cost, performance, schedule and supply, giving us a unique competitive advantage,” he said.

The foundries will be used to support Intel’s new modular approach to building chips that will make use of “tiles,” which can be made using different manufacturing processes, internal and external, based on cost, supply and performance considerations, Gelsinger said. Intel will use its Foveros 3D packaging technology to stack the tiles vertically for upcoming processors.

One upcoming Intel product that will rely on internal and external manufacturing processes is the company’s previously announced Ponte Vecchio XPU, which will integrate 47 tiles in a package using Foveros and Intel’s Embedded Multi-die Interconnect Bridge technology to deliver a petaflop of compute power for high-performance computing applications. That’s equivalent to the performance of a large supercomputer IBM deployed 13 years ago, Gelsinger noted.

This speaks to a larger industry transition as customers‘ needs and workloads diversify and grow in complexity,” he said. “The world will move from system-on-a-chip to system-on-package, and Intel’s unquestioned leadership and packaging technologies becomes even more valuable. Being able to expertly construct the best products using the best technologies is a critical differentiator for us and one that delivers enormous value for our customers.”

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