Intel Pat Gelsinger

How Intel 2.0 is making a Diverse Global Supply Chain Under Pat Gelsinger

CEO Pat Gelsinger's vision for Intel's diversified manufacturing network and its commitment to becoming customer-obsessed are discussed, along with insights into competition from ARM-based chips and the role of artificial intelligence in Intel's future plans.
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Introduction

In an era where the global semiconductor market is rapidly expanding and geopolitical concerns are driving the need for a more resilient supply chain, Intel Corporation, under the leadership of CEO Pat Gelsinger, is on a mission to transform its manufacturing strategy.

In a recent media briefing held in Taipei, Gelsinger shared Intel’s vision for a geographically balanced supply chain.

This strategy is a significant part of Intel’s IDM2.0 (integrated device manufacturing) plan, aimed at making the company a leading foundry service supplier to the world.

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The Geopolitical Imperative of Intel Diverse Supply Chain

Taiwan has established itself as a major foundry hub in Asia, with strong foundry companies contributing to the global semiconductor supply chain.

However, the current geopolitical landscape demands a more balanced and diversified approach to ensure supply chain resilience.

Intel recognizes the importance of this balance and aims to align its strategy accordingly. Gelsinger pointed out that in addition to a robust Asian supply chain, there is a growing need for strong supply chains in America and Europe.

Image Credits: Intel

Intel Diverse Supply Chain

To address these needs, Intel is making significant investments in building a diverse manufacturing network across the globe.

This strategy involves multiple manufacturing operations in the United States, Europe, and Asia. In the United States, Intel is constructing new fabrication facilities (fabs) in Oregon, Arizona, New Mexico, and Ohio.

Furthermore, Intel operates fabs in Israel and has unveiled ambitious investment plans in Ireland, Poland, and Germany for building cutting-edge semiconductor factories.

NodeLocation
Intel 7Israel
Intel 4Ireland
Intel 3Arizona, USA
Intel 20AArizona, USA
Intel 18AEurope (Madgeburg, Ireland)
Intel NextOhio

In Asia, Intel is expanding its footprint in Malaysia and Vietnam. The company is also deploying wafer-level assembly and chip packaging manufacturing capabilities in Malaysia. By spreading its operations across different geographical locations, Intel can reduce the risk of supply chain disruptions and enhance its ability to meet global demand.

Read More: 5 Key Announcements From Intel Innovation Day

The Booming Semiconductor Market

Intel’s investment in a diversified fab network is driven by the fast-growing global semiconductor market. The market is projected to hit $1 trillion by this decade’s end, up from $600 billion last year. This highlights the need for a resilient and adaptable supply chain to meet industry demands.

A significant shift in Intel’s approach is its commitment to becoming “customer-obsessed.” Gelsinger emphasized the need for Intel to serve as a factory for its customers, ensuring that their success is paramount. Historically, Intel has been a leadership technology provider, but this shift toward customer-centricity reflects the company’s adaptation to changing market dynamics and customer expectations.

Competition and AI

In the rapidly evolving tech landscape, Intel faces competition from ARM-based chips. However, Gelsinger noted that ARM has not made significant inroads into the world’s PC market. Instead, the focus is shifting towards artificial intelligence-enabled PCs. Intel anticipates a surge in AI PC shipments, with projections reaching 100 million units by 2025. Additionally, Intel sees ARM-based chipmakers as potential customers for its foundry services, as Intel’s open-source toolkit, OpenVINO, supports the ARM architecture.

Read More: Intel Most Advanced Process 18A to Enter Test Production by Early 2024

Conclusion

Intel’s focus on creating a geographically balanced supply chain and improving its manufacturing reflects the evolving semiconductor industry.

Through global investments and a customer-centric approach, Intel aims to offer dependable foundry services, bolstering the global supply chain’s resilience.

As the semiconductor market expands, Intel’s strategies position the company to meet the rising demand for advanced semiconductor technology worldwide.

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