It looks like Intel’s new CEO Pat Gelsinger wants to radically change how the company works. The company announced its strategy called IDM 2.0. This will have a $ 20 billion investment for a plant in Arizona.
This will be responsible for developing Intel’s 7 nm chips and will open the possibility of manufacturing chips to other companies, including ARM. It looks like Intel wants to regain its hegemony and will do so in style in the face of the chip shortage.
Intel will offer to manufacture chips to other companies
This information comes from Business Wire reporting that Pat Gelsinger wants to evolve Intel’s business model. With its “Integrated Device Manufacturing” or IDM 2.0, the Santa Clara giant wants to expand its operations beyond manufacturing its own chips.
The company will begin this process with a $ 20 billion investment to create two new factories in Chandler, Arizona. In 2020, they opened a first responsible for the production of 10nm chips and the two new facilities are expected to start production this year.
Intel struggled to create its first 7-nanometer processor, the so-called Meteor Lake. Its design is expected to be finalized this year and start shipping in 2023. However, Intel now wants to go beyond its own chips. Given the lack of processor production, Intel will offer facilities in Europe and the United States so that other companies can shift manufacturing to Intel.
As part of Intel’s core services, the company announces that it will work with its customers to build SoCs with x86, Arm and RISC-V cores, as well as to leverage the portfolio of design and packaging technologies. basic.
The funny thing is that Intel directly mentioned ARM and Gelsinger is clear about it. He wants to offer Tim Cook the opportunity to manufacture Apple M1 processors in-house.
Gelsinger mentioned that Intel is currently working with partners including Amazon, Cisco, IBM and Microsoft. But he took it a step further in a question-and-answer session with the press, saying he was even suing Apple’s business.
The Gelsinger revolution
It looks like the CEO change is going very well for Intel. While it is true that it has not yet regained the enthusiasm of yesteryear in manufacturing its chips, meeting the demand of other companies is an excellent strategy. Gelsinger knows that its products are of high quality to manufacture and wishes to compete with TSM (Taiwan Semiconductor).
Faced with the ostracism and boredom of the former CEO, Gelsinger offers solutions for the company and a new profession. We’ll see if that provides a sufficient boost for those in Santa Clara and offers more competition to ARM and AMD.