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Intel planning to build massive new semiconductor factory in Ohio

Daniel Nenni

Admin
Staff member
Is it wise for Intel to spread out to so many states?

I would not take this too seriously. Intel is already spending the CHIPs act money and it isn't even through Congress yet.


With TSMC spending $40B+ this year I don't see how Intel or even Samsung is going to keep up. Not only will TSMC get help from friendly governments (Japan) they are getting billions is pre payment from key customers. Best of luck to Intel and Samsung on getting prepays! It really is a game changer!
 

Arthur Hanson

Well-known member
Ohio winters are horrible and the summers are not much better. Also having worked there, the mindset is not conducive to forward thinking as I found from personal experience. It's not only the environment but the culture.
 

hist78

Well-known member

According to Intel's web page, they have fabs in four US states and three countries outside of US.

I think Intel's strategy is to get as much as possible of local and state's subsidiaries on the top of Federal's. Government subsidies do help reduce the fab construction cost but they won't help anyone to solve challenges in technology, innovation, and ecosystems.


Our fab production sites in the United States include:
  • Chandler, Arizona
  • Hudson, Massachusetts
  • Rio Rancho, New Mexico
  • Hillsboro, Oregon
Fab production sites outside the United States include:
  • Leixlip, Ireland
  • Jerusalem, Israel
  • Kiryal Gat, Israel
  • Dalian, China
We have one testing facility and one assembly development facility in the United States. The remainder assembly and test sites are outside the United States:
  • Shanghai, China
  • Chengdu, China
  • San Jose, Costa Rica
  • Kulim, Malaysia
  • Penang, Malaysia
  • Ho Chi Minh City, Vietnam
 

Jozo035

Member
I would not take this too seriously. Intel is already spending the CHIPs act money and it isn't even through Congress yet.
They are spending it at TSMC... To build new Gigafab...

Do we have data on how much is Intel paying TSMC annually? From 2019,20 to 2024. Heard they paid around $10B in 2021.
 

mozartct

Member
@hist78 For the record, Dalian was sold to SK and Hudson has been closed for a number of years (former Digital factory - 200 mm).

@Daniel Nenni Agree 100%. Do not take this seriously. In recent weeks, there was an announcement about intel Germany and another one about intel Italy. Both had to do with getting government money to pay for new fabs. intel is shopping for a deal is all, CHIPS act notwithstanding. I question the need for another factory - I mean they could buy GF instead if you get right down to it (forgetting about GF's shortcomings for now). In terms of where to build a new complex, one needs water, clean power (if you are forward thinking), labor that is either static or abundant but lightfooted and a good OEM infrastructure. Thinking here NYS (specifically Rochester NY with infinite water and power - labor?), Waco TX (not sure about water availability with new SAS), OR/WA (I mean they are already there).

Don't forget Foxconn WI.
 

hist78

Well-known member
@hist78 For the record, Dalian was sold to SK and Hudson has been closed for a number of years (former Digital factory - 200 mm).

@Daniel Nenni Agree 100%. Do not take this seriously. In recent weeks, there was an announcement about intel Germany and another one about intel Italy. Both had to do with getting government money to pay for new fabs. intel is shopping for a deal is all, CHIPS act notwithstanding. I question the need for another factory - I mean they could buy GF instead if you get right down to it (forgetting about GF's shortcomings for now). In terms of where to build a new complex, one needs water, clean power (if you are forward thinking), labor that is either static or abundant but lightfooted and a good OEM infrastructure. Thinking here NYS (specifically Rochester NY with infinite water and power - labor?), Waco TX (not sure about water availability with new SAS), OR/WA (I mean they are already there).

Don't forget Foxconn WI.

@mozartct, thank you for the update on the Intel fab locations. The Intel article I referred to was reviewed by Intel on October 26, 2021 and it listed Hudson MA fab. But Hudson fab, like you mentioned, ceased operations in May 2015 and possibly it was demolished since then. Does Intel have some internal communication difficulties?

 

mozartct

Member
@hist78 I have no idea how that slipped in there. I mean 200 mm was not part of their road map for 10 years before that. I believe the only reason they ever operated that fab was because of contractual requirements related to Alpha CPU which was a competitor to X86 at the time. The site was repurposed as far as I know. The workers dispersed regionally. Worcester used to be big in hi-tech when Digital was a thing. There was that Hudson location and magnetic head manufacturing nearby. Mostly biotech now.
 

hist78

Well-known member
Two new fabs in Arizona, two new fabs in Ohio, one new fab in Europe, expansion and upgrade in Oregon and Ireland, and all other existing fabs, that's a lot of fabs and a lot of capacity. Consider PC market isn't growing fast and IFS is just starting, does Intel really need so many new fabs at different locations?

Can they concentrate on one site instead of spreading out to multiple states and multiple countries?
 
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Daniel Nenni

Admin
Staff member
  • Intel CEO: Development of 'Silicon Heartland' comes as chip shortage changes industry mindset​


  • Intel CEO Patrick Gelsinger said Friday that a $20B project to build a manufacturing facility in Ohio will contribute to a "Silicon Heartland" to go with Silicon Valley.

  • In an interview with CNBC, the chief executive of Intel (NASDAQ:INTC) added that the development of new capacity was needed to combat the supply shortages that have bedeviled the semiconductor sector lately. He also noted that a change in mindset has convinced leaders in the industry to build out manufacturing capacity in the U.S.

  • "We need this capacity -- period. ... We believe that there is simply so much demand for our products," he said of the new project.
  • In an initiative announced early Friday, Intel (INTC) said it would invest at least $20B to build at least two semiconductor fabrication plants on a 1,000-acre site near Columbus, Ohio. Development of the facility is expected to start this year, with initial operation targeted for 2025.

  • Gelsinger reported that the company looked at 30-40 sites around the U.S. before landing on the Ohio location. He said the firm considered such factors as energy, water and the availability of talent before making a final selection.

  • Saying the plant will produce products for the global market, Gelsinger noted that advancements in automation have diminished the importance of labor costs for the manufacturing process. This would make it more economically viable to build a fab location in the U.S., he said.

  • However, Gelsinger still called on government support to make it possible for Intel (INTC) to compete on a global market.

  • While the economic concerns played a part, the Intel CEO noted that considerations of supply chain and national security also contributed to the decision to build a location in the U.S.

  • "Clearly, the crisis that we have been in has caused a rethinking of a cost-only mindset versus a resilience and flexibility mindset," he said.

  • Turning specifically to China, Gelsinger characterized U.S.-China relations are "very tenuous" but suggested that healthy trade relations could lower the geopolitical temperature.

  • "The more we increase the presence of Intel and U.S. products in China or anywhere else in the world, that's good policy. That's good trade," he said.
  • Following the fab announcement, INTC rose about 1% in Friday's early intraday trading, climbing 52 cents to $52.56 at about 9:45 a.m. ET.

  • INTC rallied to a 52-week high of $68.49 last April but suffered intermittent selling pressure from there. This included a massive sell-off following its last earnings report in October, when a disappointing outlook sparked a major retreat.

  • Intel (INTC) is scheduled to announce its next earnings report next week.

  • With its weakness over the second half of 2021, INTC has fallen well behind its competitors in the semiconductor space. The stock has fallen about 11% over the past year, compared to an 18% rise in the S&P 500.

  • https://seekingalpha.com/news/37903...mes-as-chip-shortage-changes-industry-mindset
 
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Scotten Jones

Moderator

No way it will be the largest silicon manufacturing site on the planet, certainly not if he is referring to wafers out, maybe the most acres LOL.
 

hist78

Well-known member
No way it will be the largest silicon manufacturing site on the planet, certainly not if he is referring to wafers out, maybe the most acres LOL.
The biggest, largest, first, oldest, fastest, smallest, most advanced, the only one, the chosen one, and the only hope, this is the new Intel Pat is trying to convince people to perceive.
 
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hist78

Well-known member

""That makes analysts like Arya wonder who Intel’s customers will be as it expands its U.S. fabs, and how it plans to catch up to the technological prowess of TSMC when it is still focusing on both design and manufacturing. “This is not an industry where you just wake up and catch up, “ he said. “It’s like trying to get back to being an Olympic level athlete—it doesn’t happen overnight.”"

 

Lorien

New member
I did a deep dive on EUV supply and demand last year and based on ASML's production plans there was barely enough tools for the planned fabs. Since then there have been many new fabs announced and Micron has pulled in their EUV usage by a node. I haven't rerun the numbers yet but my gut feel is there is going to be a big EUV tool shortage.
prediction: TSMC ends up with most of the EUV deliveries for actual production and Intel gets a single unit for publicity.

Pat proudly proclaims to investors Intel delivered on its promise and that AMD is in the "rearview mirror" while increasing outsource to TSMC.
 
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