Image: Intel

Intel has begun the early planning stages to build a new fab complex in the U.S. as part of its IDM 2.0 initiative.

CEO Pat Gelsinger has shared some details regarding the campus, and it’s already being likened to a little city with over 10,000 employees. Featuring six to eight modules, including its own power plant, manufacturing, and packaging facilities, it’s expected to cost between $60 and $120 billion over ten years.

Each module has an estimated $10 to $15 billion price tag. Intel has not settled on a location yet but is courting all states for proposals. Gelsinger also explained that Intel began planning roughly nine months ago and that it would take about two years to build, four years to be fully online. It plans to produce technology for a variety of different sectors.

Image: Intel

So I think auto is near the top of that list, but we now see it across everything, right, industrials, because you can’t say, boy, I’m going to do wafers just for auto. We have shortages in WiFi chips to build laptops, and we have shortages in memory chips for cloud and server opportunities. We have power controllers that are limited, affecting many of the industrial industries, so quite widespread. This is largely the fabrication facilities or general purpose across them.

Source: The Washington Post (via Tom’s Hardware)

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Peter Brosdahl

As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my...

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5 Comments

  1. [QUOTE=”Burticus, post: 39154, member: 297″]
    Hmmm, doesn’t say where…
    [/QUOTE]

    ” Intel has not settled on a location yet but is courting all states for proposals. “

  2. So at roughly 10 billion in profit per quarter, Intel could fully self finance this 1.5 to 3 years. Seems like they are shooting kind of low here, and should be looking for a project 3 to 4 times larger. After all, they won’t self finance and will be looking for handouts at the local, state, and federal level, so why go small?

  3. Maybe because their fabs haven’t had the best track record the past 5 or so years. Leverage the state incentives as much as you can to reduce risk.
    Intel still has not demonstrated a superior process node that actually pumps out high volumes, so if I were an investor I absolutely would not want them going big before they can prove some kind of return.

  4. They sell everything they make now as far as I know. Had they spent a year or two of profits in 2015-2016 to scale up, they would be capturing more of the shortage cash now. Is there any expectation that chip demand will decrease?

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