International Electronic Business News on the 24th local time on Tuesday, Intel's new CEO Pat Gelsinger delivered an hour-long global speech and announced Intel's IDM model 2.0 strategic decision, including plans to provide foundry for US and European customers. And packaging services, will spend 20 billion US dollars to build two new factories, expand chip outsourcing business and 7nm chip progress and other key content.

Intel's major changes: the launch of IDM mode 2.0

In his speech, Gelsinger said that Intel will make major changes to the existing IDM model, and will be committed to advancing the IDM 2.0 model in the future. According to Gelsinger, Intel's IDM mode 2.0 mainly includes the following:

First, Intel's global internal factory network ensures that most products can be produced internally, which is its key competitive advantage and is closely related to the company's revenue and product supply capabilities. In this regard, Gelsinger emphasized that Intel hopes to continue to complete the production of most products in-house. By increasing the use of EUV technology in the process flow, Intel has made new progress in the 7nm process. It is expected that Intel's first 7nm client CPU computing chip will tape in in Q2 this year.

Second, the use of third-party manufacturing capabilities will be expanded. Gelsinger said that to optimize Intel's roadmap in terms of cost, performance, schedule, supply, etc., the company will enhance cooperation with existing third-party foundry partners, which covers advanced process technologies to produce a series of modular chips, This includes the production of core computing products for Intel's client and data center divisions starting in 2023.

Third, it will provide foundry and packaging and testing services for European and American customers. To this end, Intel has formed a new independent business unit - Intel Foundry Services (IFS, Intel Foundry Services). The division is led by Intel Chief Supply Chain Officer Randhir Thakur as IFS President and Senior Vice President, who reports directly to Intel CEO Gelsinger. Gelsinger revealed that IFS combines advanced process and packaging technology, and supports the production of x86 core, ARM and RISC-V ecosystem IP, and can deliver a world-class IP portfolio to customers.

In order to deploy IDM Mode 2.0 more efficiently, expand the supply capacity of Intel's chip products. Intel plans to invest $20 billion to build two new fabs at its Octillo campus in Arizona. In addition, Intel plans to announce the next phase of its capacity expansion plans in the U.S., Europe and the rest of the world within this year. "International Electronic Business" will continue to pay attention.

At the same time, in order to realize the vision of IDM mode 2.0. Intel and its ecosystem partner IBM have announced a major research collaboration focused on creating next-generation logic chip packaging technology, a project designed to accelerate innovation in semiconductor manufacturing.

Finally, Gelsinger announced that the Intel Developer Forum will be held in San Francisco in October 2021.

Will directly compete with TSMC and Samsung in the field of foundry and packaging and testing!

The biggest highlight of Intel's IDM model 2.0 is its support for foundry, packaging and testing businesses. Intel, which plans to carry out foundry, packaging and testing business, will directly compete with giants such as TSMC and Samsung in foundry and packaging and testing.

"International Electronics Business" noted that Intel had tried in the field of foundry before. In 2014, Intel partnered with Panasonic's System LSI business unit, which became their first large-scale SoC customer. The 14nm SoC that Intel manufactures for them is aimed at the audio-visual equipment market. At the time, industry insiders believed that the cooperation was leading Intel's transformation from IDM to a fabless business model. However, the attempt of Intel's foundry model has not been smooth sailing. By 2018, it was rumored in the industry that Intel had closed its foundry business. Up to now, Intel has made great fanfare that it will provide wafer foundry and packaging and testing services for European and American customers, which reflects the company's determination and confidence in this business. Looking forward to Intel's re-joining, it will bring more choices to the chip foundry, and the pattern of this field may change in the future.

According to foreign media reports, after Gelsinger's speech, shares of TSMC and Samsung fell, as shares of semiconductor equipment makers rose on expectations that Intel will increase spending. Shares of Nikon Corp. surged 13% Wednesday morning, Lasertec Corp. rose 7.6% and Tokyo Electron rose 4.9%.