"Excited" CEO plans move forward for Intel's chip manufacturing resurgence
Intel leader desires to accelerate semiconductor production.
In the wake of the semiconductor industry's turbulence, Intel's new CEO, Lip-Bu Tan, remains steadfast in his ambition to propel Intel's Foundry division to success. Tan has been at the helm for around five weeks, following Pat Gelsinger's departure due to setbacks in the division's initial plans in December.
The spotlight is on Intel once more as they strive to refresh their image as a key player in semiconductor manufacturing. Gelsinger had sought to make Intel a contract manufacturer for other chip developers, a move that remains on the table under Tan's leadership.
During a recent event in San Jose, Intel showcased MediaTek as a customer for contract manufacturing using a new production process. Additional interested parties for the next manufacturing technologies were also mentioned. Intel recognizes innovations in chip design as a potential edge in competition against established players like TSMC, the world's largest contract manufacturer.
Earlier, the US government, under former President Joe Biden, and the European Union made an alliance to bring semiconductor manufacturing back to the West, promising billions in subsidies. Intel is poised to benefit significantly from this initiative, both in the US and for the stalled plant in Magdeburg.
Former President Donald Trump, while in office, criticized the subsidies as a waste of money, advocating instead for tariffs to force providers to manufacture more chips within the country. Unsurprisingly, Tan reported being "thrilled" that the Trump administration prioritized domestic production.
Advancements in Technology
The ongoing work at Intel includes:
- 18A Node: Intel has initiated risk production for its 18A node, utilizing advanced technologies such as PowerVia and RibbonFET to improve performance and transistor density. The node is expected to achieve mass production in the second half of 2025, with high-volume manufacturing wrapping up by the end of the year.
- 14A Node: Intel is also investigating the 14A node, aiming to introduce high-NA EUV lithography and deliver a 15-20% performance per watt increase. The node is currently being tested in Oregon, and advanced packaging solutions are also in the works.
- Expansion: Intel is expanding manufacturing capabilities across various global sites, including Israel, Arizona, and Ireland. The focus on global competitiveness and security is clear in Intel's plans to shift some production to new nodes in Ireland.
US Government's Support
The US government encourages domestic semiconductor manufacturing through initiatives like the CHIPS Act, which offers financial incentives for companies like Intel to build advanced facilities within the United States. This support aims to bolster national security and economic competitiveness.
Despite past administrations, such as the Trump administration, focusing on economic revitalization and reducing dependence on foreign supplies, the current strategy communicates these priorities through financial incentives and regulatory support. However, specifics regarding Tan's strategy in response to these policies are still unrevealed.
Legacy of Past Administrations
During the Trump administration, a focus on American economic recovery and reducing reliance on foreign suppliers, especially in strategic industries like semiconductors, shaped the landscape for future initiatives like the CHIPS Act. This act offers significant incentives for expanding domestic production, and Intel's recent developments, like the expansion of its foundry business and process node advancements, demonstrate recognition and utilization of these opportunities to solidify its competitive position in the global semiconductor market.
Nevertheless, details on how Tan's leadership directly engages with these historical policies or their impact on Intel's ongoing plans remain scarce at present.
- Intel's CEO, Lip-Bu Tan, plans to advance the employment policy within Intel's Foundry division as part of his ambition to propel Intel's resurgence in chip manufacturing.
- The semiconductor industry's turbulence has prompted Intel to revisit and refresh its employment policy, aiming to position itself as a key player in semiconductor manufacturing.
- The US government, under the leadership of former President Joe Biden, is offering financial incentives through the CHIPS Act to boost domestic semiconductor manufacturing, with Intel set to significantly benefit from this initiative.
- Intel's employment policy is geared towards fostering innovation in chip design as a means of competition against established players like TSMC, the world's largest contract manufacturer.
- Lip-Bu Tan has expressed excitement about the Trump administration's focus on domestic production, which could potentially influence Intel's future employment policy decisions.