Preparing Our Manufacturing Network
to Support Intelís Expanding Business
Begins Planning for Multiyear
Manufacturing Site Expansion Projects in Oregon, Ireland and Israel
By Ann Kelleher, Intel
is transforming from a PC-centric company to a data-centric company ó
serving the incredible market appetite for solutions that process,
analyze, store and share information. As a result, we are now competing
to win in an estimated $300 billion total addressable market for silicon
ó making a more diverse array of products at ever-higher volumes for a
broader set of customers. Intel is not just the CPU inside your personal
computer. We are the safety features in your car, the wireless
connection in your phone, the intelligence in the cloud and more.
Intelís ability to optimize and apply our manufacturing expertise to
deliver more advanced, differentiated products is foundational to our
current and future success.
With the biggest market opportunity in Intelís history ahead of us, we
will take the necessary steps to prepare our global manufacturing
network for flexibility and responsiveness to changes in demand.
This year, we raised our capital expenditures forecast and put that
money to work expanding our 14nm manufacturing capacity to increase
supply. We also made good progress on the previously announced schedule
for Fab 42 fit-out in Arizona, and we made the decision to locate
development of a new generation of storage and memory technology at our
manufacturing plant in New Mexico. Looking ahead, we are now in the
early planning phase for manufacturing site expansions in Oregon,
Ireland and Israel, with multi-year construction activities expected to
begin in 2019.
Having additional fab space at-the-ready will help us respond more
quickly to upticks in the market and enables us to reduce our time to
increased supply by up to roughly 60 percent. In the weeks and months
ahead, we will be working through discussions and permitting with local
governments and communities. It is important to note that site expansion
and the related investment will be taken in stages and are always
subject to change based on business, economic and other factors.
addition to expanding Intelís own manufacturing capability, we will
continue our selective use of foundries for certain technologies where
it makes sense for the business. The use of foundries has been an Intel
practice for nearly two decades. As we invent more products for a
broader set of customers, you can expect us to be strategic about the
application of Intelís differentiated manufacturing capability and the
selective use of foundries.
Intel isnít just inventing technologyís future, weíre building it. We
will continue applying our advantages as an integrated device
manufacturer to deliver the worldís best silicon. To do that, we will
continue to ensure we have the necessary global manufacturing footprint
and capabilities as our business expands.