Intel is spending $20 billion to add new chip manufacturing facilities

Apple has reduced its dependence on Intel since it began manufacturing its own chips. Intel, however, made a plan to sneak in Cupertino (headquarters of Apple) and simultaneously to come to the fore after its decline in recent years.

Intel has announced that it will be establishing the IFS (Intel Foundry Services), a new business unit that will be led by the company’s vice president, Randhir Thakur, who will have the responsibility for manufacturing chips of other companies. Intel announced a plan to invest $20 billion for building the IFS factories in Chandler, Arizona.

This change might be the best solution for the survival of Intel in the market. Companies such as Apple, Google, Microsoft, and Qualcomm have managed to surpass its chipsets with their own architectures, but none of them have their own production units and are forced to turn to third parties (e.g. TSMC).

Considering the fact that processors are constantly increasing due to their use in almost everything new on the market (from electronics to cars), it is clear that should be found other production units that will operate in this way (i.e. with contractors). Intel estimates that this market will exceed the limit of $ 100 billion annually until 2025. It also believes that it can make a huge share of this pie due to the economic war between the US and China, in the sense that US companies will prefer US-based production facilities.

The great challenge for Intel is whether it can manage to create production lines to 3nm and 5nm wide, so as to compete on equal terms with TSMC and Samsung. Until now, Intel is using 10nm-14nm lines for the design and manufacture of its own processors.