Intel Details IDM 2.0 Strategy
March 24, 2021
Intel CEO Pat Gelsinger outlined the company’s path forward to manufacture, design and deliver leadership products and create long-term value for stakeholders. During the company’s global “Intel Unleashed: Engineering the Future” webcast, Gelsinger shared his vision for “IDM 2.0,” a major evolution of Intel’s integrated device manufacturing (IDM) model. Gelsinger announced significant manufacturing expansion plans, starting with an estimated $20 billion investment to build two new factories (or “fabs”) in Arizona. He also announced Intel’s plans to become a major provider of foundry capacity in the U.S. and Europe to serve customers globally.
“We are setting a course for a new era of innovation and product leadership at
Intel,” said Gelsinger. “Intel is the only company with the depth and breadth of
software, silicon and platforms, packaging, and process with at-scale
manufacturing customers can depend on for their next-generation innovations. IDM
2.0 is an elegant strategy that only Intel can deliver – and it’s a winning
formula. We will use it to design the best products and manufacture them in the
best way possible for every category we compete in.”
1.Intel’s global, internal factory network for at-scale manufacturing is a key competitive advantage that enables product optimization, improved economics and supply resilience. Today, Gelsinger re-affirmed the company’s expectation to continue manufacturing the majority of its products internally. The company’s 7nm development is progressing well, driven by increased use of extreme ultraviolet lithography (EUV) in a rearchitected, simplified process flow. Intel expects to tape in the compute tile for its first 7nm client CPU (code-named “Meteor Lake”) in the second quarter of this year. In addition to process innovation, Intel’s leadership in packaging technology is an important differentiator that enables the combination of multiple IPs or “tiles” to deliver uniquely tailored products that meet diverse customer requirements in a world of pervasive computing.
2.Expanded use of third-party foundry capacity. Intel expects to build on its existing relationships with third-party foundries, which today manufacture a range of Intel technology – from communications and connectivity to graphics and chipsets. Gelsinger said he expects Intel’s engagement with third-party foundries to grow and to include manufacturing for a range of modular tiles on advanced process technologies, including products at the core of Intel’s computing offerings for both client and data center segments beginning in 2023. This will provide the increased flexibility and scale needed to optimize Intel’s roadmaps for cost, performance, schedule and supply, giving the company a unique competitive advantage.
3.Building a world-class foundry business, Intel Foundry Services. Intel
announced plans to become a major provider of U.S.– and Europe-based foundry
capacity to serve the incredible global demand for semiconductor manufacturing.
To deliver this vision, Intel is establishing a new standalone business unit,
Intel Foundry Services (IFS), led by semiconductor industry veteran Dr. Randhir
Thakur, who will report directly to Gelsinger. IFS will be differentiated from
other foundry offerings with a combination of leading-edge process technology
and packaging, committed capacity in the U.S. and Europe, and a world-class IP
portfolio for customers, including x86 cores as well as ARM and RISC-V ecosystem
IPs. Gelsinger noted that Intel’s foundry plans have already received strong
enthusiasm and statements of support from across the industry.