Monday, August 9th 2021

Intel Expects New US Fab Investment to Cost $60 to $120 billion

In an interview with the Washington Post, Intel CEO Pat Gelsinger shared some details on the company's plans to expand its foundry operations in the US. As part of the company's IDM 2.0 plan, the company aims to construct a new cutting edge fabrication complex that will cover both wafer manufacturing and advanced packaging technologies. While the final factory location still hasn't been disclosed, the company said it plans to build the complex in close proximity to universities - a way to facilitate the hiring process of qualified personnel and, perhaps, of establishing joint research and development. Intel expects this foundry complex to cost between $60 and $120 billion.
Intel CEO Pat GelsingerWe are looking broadly across the U.S.. This would be a very large site, so six to eight fab modules, and at each of those fab modules, between 10- and $15 billion. It's a project over the next decade on the order of $100 billion of capital, 10,000 direct jobs. 100,000 jobs are created as a result of those 10,000, by our experience. So, essentially, we want to build a little city."
The factory should thus include between six and eight modules dedicated to Intel's leading-edge manufacturing processes and wafer processing, and will also include facilities dedicated to Intel's proprietary EMIB and Foveros packaging technologies. Power will be delivered by an on-site dedicated power plant. And while Intel hasn't disclosed which manufacturing processes this new fabrication complex will specialize in, the 2024 timeframe for the construction to commence likely means a higher likelihood of it being a true cutting-edge, Intel 4 or Intel 3 manufacturing technologies rather than scaling up production for current processes.
Intel CEO Pat GelsingerWe're engaging with a number of states across the United States today who are giving us proposals for site locations, energy, water, environmentals, near universities, skill capacity, and I expect to make an announcement about that location before the end of this year," Gelsinger said.
Sources: The Washington Post, via Tom's Hardware
Add your own comment

21 Comments on Intel Expects New US Fab Investment to Cost $60 to $120 billion

#1
DeathtoGnomes
"First rule in government spending: why build one when you can have two at twice the price? Only, this one can be kept secret." (movie quote)
60b, 120b, just get it done Intel.
Posted on Reply
#2
londiste
Trying to buy GF for $30 billion suddenly makes a lot more sense :)
Posted on Reply
#3
john_
Intel expects what logic says. The more we move in to the future, the more we will want electronics. Electronics everywhere, means huge demand for chips and Intel does have the experience, expertise, factories and personel to support the need for the production of more chips.
Posted on Reply
#4
Vayra86
Money is still not a design win, Pat G, and plans are just that. We've seen a lot of those come to fruition lately, eh.

Without design wins, what Intel is seeking to buy (GF) is what they might be relegated to.
Posted on Reply
#5
dj-electric
Vayra86Money is still not a design win, Pat G, and plans are just that. We've seen a lot of those come to fruition lately, eh.

Without design wins, what Intel is seeking to buy (GF) is what they might be relegated to.
From my understanding, and discusssions with people who sort of make important things done, architechture engineering is actually the least of Intel's problems.
Lithography is their biggest bottleneck by a very long mile. Its so problematic, that even breakthrough designs can't be prototyped and developed as a result of such. Its being done partially expernally at other fabs, which massively slows down further developments

This to me looks like the right move
Posted on Reply
#6
TheinsanegamerN
john_Intel expects what logic says. The more we move in to the future, the more we will want electronics. Electronics everywhere, means huge demand for chips and Intel does have the experience, expertise, factories and personel to support the need for the production of more chips.
Am I the only one who wants LESS electronics? I'm so tired of seeing LCD screens in everything these days, your coffee maker, your toaster, your fridge, your CAR. Digital sinage on billboards, every building, every storefront window. It's all so clinical and just bleh.
WirkoLess so if you receive a fat government subsidy for that girlfriend.
Is the government subsidy for the fat girlfriend larger?
Posted on Reply
#7
ZoneDymo
there is quite a bit of money between 60 and 120...BILLION dollars....honestly if they come with such an estimate I dont think I would want to do business with them.
Posted on Reply
#8
Upgrayedd
ZoneDymothere is quite a bit of money between 60 and 120...BILLION dollars....honestly if they come with such an estimate I dont think I would want to do business with them.
It's Intel. They spend billions all the time. Nobody ever truly can tell you the price of a project that massive that far ahead of time.
Posted on Reply
#9
john_
TheinsanegamerNAm I the only one who wants LESS electronics? I'm so tired of seeing LCD screens in everything these days, your coffee maker, your toaster, your fridge, your CAR. Digital sinage on billboards, every building, every storefront window. It's all so clinical and just bleh.
Not to mention the environmental waste all this stuff ends up being.

But the world is moving in that direction and newer generations are more and more comfortable with more and more tech gadgets. What could be tiring or just too much for you and me, it is normal or even preferred for the majority of newer generations.
Posted on Reply
#10
thesmokingman
I wouldn't care unless they're getting tax dollars for this crap.
Posted on Reply
#11
john_
thesmokingmanI wouldn't care unless they're getting tax dollars for this crap.
Of course they are. If not directly, at least indirectly by not paying as much taxes as they should. I mean, if they don't get tax dollars, why not go in Europe for example? With the US government realizing how much important it is to not left behind China in technology, tax dollars will definitely go to hi tech companies, especially companies that also BUILD stuff, not companies that just design stuff to put in glossy boxes. Let me put it another way. Chinese government pays companies in China to innovate in technology. US will do the same if it wishes to stay ahead.
Posted on Reply
#12
CallandorWoT
In the article I read the CEO of Intel said he hopes congress passes the tax funding soon for this to happen.

So basically, Intel can't compete, relies on government bailout to compete... lol

Pathetic.
Posted on Reply
#13
londiste
lynx29In the article I read the CEO of Intel said he hopes congress passes the tax funding soon for this to happen.
So basically, Intel can't compete, relies on government bailout to compete... lol
Pathetic.
Cmon, why does it always need to be this bashing?
TSMC is similarly fishing for government support on their planned Arizona plant (and the one in Germany, and Japan).
This is business as usual.
Posted on Reply
#14
HenrySomeone
dj-electricFrom my understanding, and discusssions with people who sort of make important things done, architechture engineering is actually the least of Intel's problems.
Lithography is their biggest bottleneck by a very long mile. Its so problematic, that even breakthrough designs can't be prototyped and developed as a result of such. Its being done partially expernally at other fabs, which massively slows down further developments

This to me looks like the right move
It's not just your understanding - it's the truth and some of us have been mentioning this for years. Pretty much all of Intel's problems of late are connected one way or another with node setbacks and not architecture blunders. But things are finally moving forward with Alder Lake and by the time they get on 7nm, I expect not much will be able to compete against them once again; now TSMC's latest and greatest process at that time (3nm probably) might still be at least on par, but AMD won't have access to it yet, just like they can't get 5nm yet today.
Posted on Reply
#15
CallandorWoT
londisteCmon, why does it always need to be this bashing?
TSMC is similarly fishing for government support on their planned Arizona plant (and the one in Germany, and Japan).
This is business as usual.
ye, agreed. none of our taxpayer money should be going to this crap. the founders in 1776 would be rolling in their graves if they saw how many taxes we pay now.

the dream of the free land died a long time ago I am afraid. we traded the tyrant King George who was 3000 miles away, for one who was 300 miles away.
Posted on Reply
#16
john_
lynx29ye, agreed. none of our taxpayer money should be going to this crap.
You are wrong here. Taxpayer money going in something that will build a whole hi tech city in your country and provide citizens with well payed jobs while keeping extremely smart individuals in the country, also helping your country to maintain a lead in technology, is in fact a great investment.
Taxpayer money going to limousines, bribes to politicians and generally to some pockets of useless individuals are money lost.
Posted on Reply
#17
CallandorWoT
john_You are wrong here. Taxpayer money going in something that will build a whole hi tech city in your country and provide citizens with well payed jobs while keeping extremely smart individuals in the country, also helping your country to maintain a lead in technology, is in fact a great investment.
Taxpayer money going to limousines, bribes to politicians and generally to some pockets of useless individuals are money lost.
Well since you think you have the right to take money out of my wallet to pay for this, I think I have the right to take some money out of your wallet, money you earned to pay for universal heathcare, free university, and student loan forgiveness, so on your next paycheck, it will be 20% smaller. You are ok with this to help me out? 40 hours every week, you will do this 10% ok to help out your country.

let me know, thanks. you seem to know what's best, but I think is what's best. so who is to decide. there is only limited amount we can tax though. so how do we spend it?
Posted on Reply
#18
john_
lynx29Well since you think you have the right to take money out of my wallet to pay for this, I think I have the right to take some money out of your wallet, money you earned to pay for universal heathcare, free university, and student loan forgiveness, so on your next paycheck, it will be 20% smaller. You are ok with this to help me out? 40 hours every week, you will do this 10% ok to help out your country.

let me know, thanks. you seem to know what's best, but I think is what's best. so who is to decide. there is only limited amount we can tax though. so how do we spend it?
That's how tax works and I am super fine with the examples you give. I am not fine for example with what politicians do in Greece and maybe you should hear the worst to understand that these examples of yours are totally accepted examples. let me say again. I would be super happy if tax was going to help people or help the country to invest in it's future.

In the 80's there where still some major manufacturers in Greece. What politicians did? They convince unionists in those factories to go on strike and force companies to leave Greece and close their factories. Politicians where promising and then fulfilling that promise of taking all those workers in those factories that where now without jobs and put them in state jobs. Of course all those workers would have to vote for the political party that gave them secure, well payed state jobs. Or another example. Until many years ago, farmers where cutting the country in half with roadblocks on many roads. After 2-3-4 weeks where the country was having huge problems because of this, government would come to an agreement with farmers to give them state support and stop their protests. I am talking about state help of one billion or more euros. Think an equivalent help of 40-60 or more billions in the case of USA. In the end there where more Porsche Cayenne in small villages, than major cities.

Tax money to help your country to remain on top of technology and interdependent? tax money for universal healthcare, free universities and in some cases student loan forgiveness? Oh, that would have been great. Instead we have politicians with over 30-50-100 houses in their possession. Think about it.
Posted on Reply
#19
TheEndIsNear
lynx29ye, agreed. none of our taxpayer money should be going to this crap. the founders in 1776 would be rolling in their graves if they saw how many taxes we pay now.

the dream of the free land died a long time ago I am afraid. we traded the tyrant King George who was 3000 miles away, for one who was 300 miles away.
I wish they would pop out of their graves and take over the government from the mental rejects in there now.
Posted on Reply
Add your own comment
Jun 30th, 2022 15:16 EDT change timezone

New Forum Posts

Popular Reviews

Controversial News Posts