You are currently viewing SemiWiki as a guest which gives you limited access to the site. To view blog comments and experience other SemiWiki features you must be a registered member. Registration is fast, simple, and absolutely free so please, join our community today!
"US semiconductor giant Intel Corp. has inked an agreement in principle with the Israeli government to build a chip manufacturing plant in Kiryat Gat at an investment of $25 billion."
"The announcement was made after an agreement in principle was reached between Intel and the Finance Ministry on the investment plans. As part of the agreement, Intel will pay a 7.5% tax rate, up from the 5% the chipmaker pays the state today, the Finance Ministry said in a statement. In addition, it was agreed that Intel would get a government grant at a rate of 12.8% of the investment amount under the Encouragement of Capital Investment Law (ECIL)."
Add that to the rest of the foundries and IDMs CAPEX press releases and we will see a chip glut like no other, my opinion. I was guessing that only half of what has been announced would actually get spent but it looks like I may be wrong.
And they are all focusing on leading edge semiconductor manufacturing. Is it a gamble or a response to customers' demands? Can ASML produce enough EUV machines for them?
It could also be considered wishful thinking by Intel. TSMC builds fabs based on customer demand so it is a very different situation but even TSMC got it wrong this year. Last I heard TSMC was at 70% utilization which is probably fine for Intel internal products but not so much for a foundry.