In recent times, the semiconductor Foundry industry has witnessed a significant shift in strategies, especially with Intel new approach under the leadership of Pat Gelsinger. One of the most debated moves is Intel’s enthusiasm to become a contract chip manufacturer for other companies, a key aspect of its Integrated Foundry Solutions (IFS) strategy. This shift has raised eyebrows, with Darren Grasby, Executive Vice President for Strategic Partnerships and President of AMD EMEA, expressing skepticism and offering a contrasting perspective.
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Grasby’s Critique of Intel Foundry Strategy
Speaking at the Canalys EMEA Forum 2023, Darren Grasby implied that Intel’s newfound enthusiasm for contract manufacturing diverges from the successful strategies of a modern chip design company. Grasby, a senior executive at AMD, suggested that this move may not lead to success for Intel in the long run. He emphasized that AMD’s decision to transition to a fabless model was a pivotal moment for the company, allowing them to redirect R&D investments into their product roadmap. According to Grasby, strategic R&D investments directly correlate with substantial returns, indicating that Intel could potentially benefit from a similar shift.
When asked whether or not Intel’s IFS strategy will succeed, AMD’s exec responded “Of course not.”
AMD’s Growth and Fabless Strategy
AMD’s strategic decision to go fabless in recent years has evidently propelled the company forward. The move enabled them to allocate their R&D dollars efficiently, contributing to substantial advancements in refined semiconductor processes, pioneering multi-chip packages, and the integration of potent integrated graphics processing units (iGPUs). This approach has empowered AMD to make significant strides in the market, positioning them as a formidable competitor against Intel.
Read More: How TSMC is a Winner in Intel’s Recent Announcement
Intel Foundry Strategy: A Passing Grade?
During the Canalys EMEA Forum 2023, Grasby criticized Intel’s IFS strategy, predicting its unlikelihood of success. This differs significantly from Gelsinger’s assessment.
Last week, Pat Gelsinger displayed an unusual level of humility when discussing Intel’s IFS venture, remarking “I would give us a passing grade, two and a half years into the [IFS] journey.”
Intel’s Bold Moves and Future Prospects
Intel’s investments in production facilities and partnerships with MediaTek and Nvidia emphasize its dedication to the IFS strategy. The future success of Intel’s strategic shifts is still to be fully realized, amidst differing opinions in the industry, including from AMD’s Darren Grasby. The semiconductor industry is currently undergoing significant transformation, and only time will unveil the true implications.
