Doubling Down on Domestic Chip Production
On March 23, 2021, Intel outlined their $20 billion plan to build two new manufacturing fabrication facilities (fabs) in Arizona, a project that's expected to create over 15,000 jobs.
The long-term implications? By building chip fabrication facilities in the US, Intel® has effectively stated that they don't want to be bound by their own chip production capacity as well as others among the world's largest fabrication facilities. While they aren't ending their relationships with the other chip builders, the company wants to have the capacity to support the launch of many new products.
What's not evident to those outside the chip fabrication world is that, despite the propensity of hardware vendors globally, only a limited amount of facilities can make the microchips go into them. As you can guess, the biggest manufacturers have the greatest influence over what these facilities produce. For example, Apple's order for chips to go into its latest iPhone might take priority over a smaller manufacturer.
Strengthening Fabrication Capacity Abroad
Intel has pledged to invest, from 2019 to the end of 2021, over $7 billion in manufacturing capacity in Ireland to address both political pressures and capacity issues. As a result, the company intends to create approximately 1,600 permanent jobs and 5,000 construction jobs. While there may be many advantages to producing their product in the Emerald Isle, their main purpose may be to allow the EU increased capacity to make its chips.
The company is not stopping at its facilities. For the first time, they plan to allow the manufacturing of Intel chips at non-Intel facilities. That means fabrication facilities that never had the opportunity to build Intel technology will now be commissioned to do so. And while the move represents an unprecedented opening of Intel's intellectual property, its goal is clearly to allow for greater production capacity.
Leveraging Increased Chip Capacity
Intel's expansion is not solely about growing its capacity. The company intends to open up the upcoming Arizona and Ireland facilities to chip fabrication for other manufacturers. Therefore, they will allow other fab facilities to build Intel chips and offer the capability of chip building to other companies, including Apple and others.
Intel has realized they need to better meet demand to maintain their position as the world's leading chip manufacturer. On April 6, 2021, the technology leader also announced a new generation of Xeon microprocessors along with a variety of SSDs, memory, and other technologies. What better way to support product demand but with increased production capacity?
What Intel's Plans Mean for Our Clients
The timelines to receive motherboards with the latest Intel processors may be shorter than ever, despite growing demand, and that means greater computing capacity for all. In short, Intel's latest announcements for increased chip production and next-gen technology can factor into both your short and long-term growth plans.
As an Intel Technology Provider, UNICOM Engineering has helped drive the latest solutions with our partners for decades. Together we are able to deliver world-changing technology and solutions that enrich lives globally. If you are ready to discuss how we can help you and your team bring your solution to market faster, contact us by visiting our website and scheduling a consultation.