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Intel announced new plans in March 2021 called IDM 2.0 that include investments in manufacturing facilities using both internal and external foundries. This includes a new standalone business unit called Intel Foundry Services that will offer packaging and process technology as well as Intel's IP portfolio including x86 cores. In 2022 and 2023, Intel selected sites in Ohio and Germany for new chip manufacturing facilities costing over $20 billion and €17 billion respectively, and partnered with Brookfield Asset Management on a $30 billion deal to fund expansions. Intel also confirmed plans to adopt high-NA EUV lithography and unveiled a new AI chip called Gaudi3.

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8 views

7 Computer System

Intel announced new plans in March 2021 called IDM 2.0 that include investments in manufacturing facilities using both internal and external foundries. This includes a new standalone business unit called Intel Foundry Services that will offer packaging and process technology as well as Intel's IP portfolio including x86 cores. In 2022 and 2023, Intel selected sites in Ohio and Germany for new chip manufacturing facilities costing over $20 billion and €17 billion respectively, and partnered with Brookfield Asset Management on a $30 billion deal to fund expansions. Intel also confirmed plans to adopt high-NA EUV lithography and unveiled a new AI chip called Gaudi3.

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'IDM 2.

0' strategy[edit]
On March 23, 2021, CEO Pat Gelsinger laid out new plans for the company. [131] These include a new
strategy, called IDM 2.0, that includes investments in manufacturing facilities, use of both internal
and external foundries, and a new foundry business called Intel Foundry Services (IFS), a
standalone business unit.[132][133] Unlike Intel Custom Foundry, IFS will offer a combination of
packaging and process technology, and Intel's IP portfolio including x86 cores. Other plans for the
company include a partnership with IBM and a new event for developers and engineers, called "Intel
ON".[97] Gelsinger also confirmed that Intel's 7 nm process is on track, and that the first products
using their 7 nm process (also known as Intel 4) are Ponte Vecchio and Meteor Lake.[97]

In January 2022, Intel reportedly selected New Albany, Ohio, near Columbus, Ohio, as the site for a
major new manufacturing facility.[134] The facility will cost at least $20 billion.[135] The company expects
the facility to begin producing chips by 2025.[136] The same year Intel also
choose Magdeburg, Germany, as a site for two new chip mega factories for €17 billion
(topping Tesla's investment in Brandenburg). Groundbreaking is planned for 2023, while production
start is planned for 2027. Including subcontractors this would create 10,000 new jobs. [137]

In August 2022, Intel signed a $30 billion partnership with Brookfield Asset Management to fund its
recent factory expansions. As part of the deal, Intel would have a controlling stake by funding 51% of
the cost of building new chip-making facilities in Chandler, with Brookfield owning the remaining 49%
stake, allowing the companies to split the revenue from those facilities. [138][139]

On January 31, 2023, as part of $3 billion in cost reductions, Intel announced pay cuts affecting
employees above midlevel, ranging from 5% upwards. It also suspended bonuses and merit pay
increases, while reducing retirement plan matching. These cost reductions followed layoffs
announced in the fall of 2022.[140]

In October 2023, Intel confirmed it would be the first commercial user of high-NA EUV
lithography tool, as part of its plan to regard process leadership from TSMC.[141]

Artificial intelligence[edit]
In December 2023 Intel unveiled Gaudi3, an artificial intelligence (AI) chip for generative AI software
which will launch in 2024 and compete with rival chips from Nvidia and AMD.[142]

Product and market history[edit]


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SRAMs, DRAMs, and the microprocessor[edit]


Intel's first products were shift register memory and random-access memory integrated circuits, and
Intel grew to be a leader in the fiercely competitive DRAM, SRAM, and ROM markets throughout the
1970s. Concurrently, Intel engineers Marcian Hoff, Federico Faggin, Stanley Mazor, and Masatoshi
Shima invented Intel's first microprocessor. Originally developed for the Japanese
company Busicom to replace a number of ASICs in a calculator already produced by Busicom,
the Intel 4004 was introduced to the mass market on November 15, 1971, though the
microprocessor did not become the core of Intel's business until the mid-1980s. (Note: Intel is
usually given credit with Texas Instruments for the almost-simultaneous invention of the
microprocessor.)

In 1983, at the dawn of the personal computer era, Intel's profits came under increased pressure
from Japanese memory-chip manufacturers, and then-president Andy Grove focused the company
on microprocessors. Grove described this transition in the book Only the Paranoid Survive. A key
element of his plan was the notion, then considered radical, of becoming the single source for
successors to the popular 8086 microprocessor.

Until then, the manufacture of complex integrated circuits was not reliable enough for customers to
depend on a single supplier, but Grove began producing processors in three geographically distinct
factories,[which?] and ceased licensing the chip designs to competitors such as AMD.[143] When the PC
industry boomed in the late 1980s and 1990s, Intel was one of the primary beneficiaries.

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