Intel announces ‘IDM 2.0’ strategy for manufacturing

During Intel’s ‘Intel Unleashed: Engineering the Future’ webcast, Pat Gelsinger, CEO at Intel outlined the company’s ‘IDM 2.0’ strategy for manufacturing, innovation and product leadership to create long term value for its stakeholders.

As part of his announcement, Gelsinger detailed Intel’s significant manufacturing expansion plans, investing US$20bn in two new Arizona factories, as well as its ambitions to become a major provider of foundry capacity in the US and Europe.

“We are setting a course for a new era of innovation and product leadership at Intel. Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in,” said Pat Gelsinger, CEO at Intel.

IDM 2.0 a new era of innovation and product leadership

Enabling Intel to drive sustained technology and product leadership, the IDM 2.0 strategy combines three components: 

Intel’s global, internal factory network

A key competitive advantage for Intel, its global internal factory network for at-scale manufacturing enables product optimisation, improves economics and drives supply resilience. At the webinar, Gelsinger reaffirmed its expectations to continue manufacturing a majority of its products internally.  

Expanding the use of third-party foundry capacity

Building on its existing relationships with third party foundries, Gelsinger expects its engagement to grow and include manufacturing for a range of modular tiles on advanced process technologies. 

In doing so, Intel expects to benefit from increased flexibility and scale to optimise its roadmaps for cost, performance, schedule and supply for a unique competitive advantage.

Developing a world-class foundry business

Intel plans to become a major provider of US and Europe based foundry capacity serving the global demand for semiconductor manufacturing.

In order to achieve this, Intel will establish a standalone business unit - Intel Foundry Services (IFS) - led by Dr. Randhir Thakur, offering leading-edge process technology and packaging, as well as a world-class IP portfolio for customers.

To accelerate its strategy, Intel will further its collaborative relationship with IBM to create next generation logic and packaging technologies.

For more information on manufacturing topics - please take a look at the latest edition of Manufacturing Global.

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