Intel’s Foundry Bet May Split The Market in Three
It will be tough to catch up to chip leaders and stay there, with a trifurcation of the industry a likely scenario.
Made in America.
Photographer: Gaelen Morse/BloombergIntel Corp.’s bold plan to enter the custom chipmaking industry is aimed at countering the dominance of Taiwan Semiconductor Manufacturing Co. and boosting supply of leading-edge manufacturing. Instead, the move will likely split the market in three, leaving the US giant stuck in the middle.
Chief Executive Officer Pat Gelsinger announced his intention to open up Intel’s fabrication plants (fabs) to external clients two years ago, accompanied by a $20 billion investment into two new facilities in Arizona. Early last year it added a further $20 billion plan for a site in Ohio. “Our ambition is to be the No. 2 foundry in the world by the end of the decade,” Randhir Thakur, president of Intel Foundry Services told Nikkei in November. That means overtaking either TSMC or close rival Samsung Electronics Co.