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Interesting Intel UMC/Tower Collaboration Model

hskuo

Well-known member
For example, cooperation with Tower Semiconductor and UMC precisely implies that Intel will transfer to partners enterprises and equipment that have already paid for themselves, but can generate additional income outside the scope of Intel’s direct interests. Tower and UMC will receive production sites in the US and will pay Intel for their use. The same UMC, for example, will receive equipment from Intel that can produce chips using 14-nm and 10-nm technologies, but it will be located in premises that are not suitable for installing modern equipment for working with EUV lithography. As a result, the buildings will not be idle and will begin to generate income for Intel, although it will not need it directly.

 
I saw the UMC president speak at the IFS event. It was not great and relatively content free.

"By 2030, as Stuart Pann recalled, Intel expects to become the second largest contract chip manufacturer in the world."

What will be the revenue of Intel Internal products for IFS? Once Intel gets off TSMC IFS will easily be the #2 foundry.
 
For example, cooperation with Tower Semiconductor and UMC precisely implies that Intel will transfer to partners enterprises and equipment that have already paid for themselves, but can generate additional income outside the scope of Intel’s direct interests. Tower and UMC will receive production sites in the US and will pay Intel for their use. The same UMC, for example, will receive equipment from Intel that can produce chips using 14-nm and 10-nm technologies, but it will be located in premises that are not suitable for installing modern equipment for working with EUV lithography. As a result, the buildings will not be idle and will begin to generate income for Intel, although it will not need it directly.

typically these contracts are Lease agreements on Fab and equipment use. The fabs all currently generate revenue for Intel although these agreements keep them loaded longer.
 
For example, cooperation with Tower Semiconductor and UMC precisely implies that Intel will transfer to partners enterprises and equipment that have already paid for themselves, but can generate additional income outside the scope of Intel’s direct interests. Tower and UMC will receive production sites in the US and will pay Intel for their use. The same UMC, for example, will receive equipment from Intel that can produce chips using 14-nm and 10-nm technologies, but it will be located in premises that are not suitable for installing modern equipment for working with EUV lithography. As a result, the buildings will not be idle and will begin to generate income for Intel, although it will not need it directly.


"By 2030, as Stuart Pann recalled, Intel expects to become the second largest contract chip manufacturer in the world. The ability to effectively use equipment and premises that have already paid for themselves is one of the conditions for the development of a contract business. For example, cooperation with Tower Semiconductor and UMC precisely implies that Intel will transfer to partners enterprises and equipment that have already paid for themselves, but can generate additional income outside the scope of Intel’s direct interests. Tower and UMC will receive production sites in the US and will pay Intel for their use. The same UMC, for example, will receive equipment from Intel that can produce chips using 14-nm and 10-nm technologies, but it will be located in premises that are not suitable for installing modern equipment for working with EUV lithography. As a result, the buildings will not be idle and will begin to generate income for Intel, although it will not need it directly."

I think that Tech News Space author might interpret Tom's Hardware's interview incorrectly. Why Tower and UMC need to buy (or get free) Intel's fully depreciated equipment at all? I don't see such words from the original interview done by Paul Alcorn of Tom's Hardware.

Intel Foundry Services Head Stu Pann explains company's plan to build Arm chips, move more manufacturing to the U.S.

 
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