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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 Return To ‘Unquestioned Leadership’ For CPUs In 3-4 Years

As part of the IDM 2.0 strategy, Gelsinger vowed that Intel will return to “unquestioned leadership” for its CPU products by 2024 or 2025 while restoring the company’s “tick-tock” model that was abandoned during its 10-nanometer struggles.

Intel previously used the tick-tock model to bring new advances to every product generation, with alternating enhances in manufacturing process and architecture.

For years, this approach resulted in a predictable shrink of the processors’ transistors every two or so years, which brought new performance and efficiency benefits. But when the company struggled to deliver a viable 10nm node on schedule, it ditched the tick-tock model in 2016 to focus on improvements in architecture and elsewhere.

But with the new IDM 2.0 strategy, Gelsinger said Intel will re-establish that “tick-tock discipline.”

Beyond its CPU plans, Gelsinger said Intel will also provide “unquestioned leadership” for AI, graphics and networking technologies as part of Intel’s multi-architecture “XPU” product strategy.

“Those areas are ones that we have solid positions, but trust me, we‘re going to accelerate the investments that we have in those areas,” he said.

Gelsinger admitted that Intel’s 10nm issues created a “domino effect” and contributed to the company pushing out its timeline for next-generation 7nm products.

Intel’s 7nm work was also complicated by the company’s original plan to limit its use of extreme ultraviolet (EUV) lithography as an advanced fabrication method, but the company has since fully adopted it, Gelsinger said, and Intel’s 7nm process is now “on a good course.”

The company expects to “tape in” the 7nm compute tile of Intel’s 2023 client CPU, Meteor Lake, in the second quarter of this year, according to Gelsinger. Meteor Lake will also include tiles using other manufacturing processes, all of which will be integrated using Intel’s Foveros 3D packaging technology.

“Our technology teams are moving rapidly through process maturity, and as they do, our confidence in 7nm health and competitiveness is accelerating,” he said.

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