According to futu news, Intel announced on Tuesday that it will invest $20 billion to build two new fabs in Ocotillo, Arizona. After the news broke, Intel's stock price rose 6% after hours, while taiwan semiconductor fell 3%.
The global chip shortage is affecting multiple industries from autos to electronics, with concerns rising that the USA is falling behind in semiconductor manufacturing. Intel announced it will start a new foundry business, with the subsidiary named Intel foundry Services and led by Intel's current Senior Vice President Randhir Thakur.
Management stated that by 2025, the potential market size of the foundry business will reach $100 billion. Intel will manufacture a range of chips, including ARM chips. A slide presented by intel shows that companies like amazon, google, microsoft, and qualcomm may be customers of this business.
WeTech review:
The main highlights of the video from the new CEO last night were:
1. Proposed the IDM2.0 strategy, launched wafer foundry business, TAM 100 billion USD by 2025
2. 7nm expected to tape out in Q2 2021, with shipments in 2023
3. Restarted the Tick-Tock strategy, aiming to become a process leader in 2024/2025
4. Raised Q1 guidance, strong demand in the laptop market; but constrained by supply chain issues, full-year revenue guidance 76.5 billion USD, down 1.8% year-on-year! (including the NAND business) ...