Intel's effort to build a foundry biz is costing far more – and taking longer

Three years after CEO Pat Gelsinger announced Intel would create a foundry business that took on contract manufacturing gigs, Chipzilla has committed to more than $185 billion in spending across new and existing fab, packaging, and test sites.and up to $11 billion of loans secured, Intel Foundry – an independently managed unit under the Intel umbrella – is pushing ahead with its plan to become the number two foundry operator behind TSMC by 2030.

Beyond manufacturing delays, Intel faces several other challenges bringing these fabs online. First is rising construction costs – which have ballooned since Gelsinger first announced the Arizona and Ohio projects. Another challenge facing Intel and others building fabs in the USA is staffing. Shortages of skilled staff have forced delays for TSMC, while Intel is actively working to train personnel to run these facilities when they come online.upgrades to its Rio Rancho, New Mexico facility –known as Fab 9 and Fab 11x. These upgrades – originally expected to cost $3.5 billion but now estimated to cost closer to $4 billion – aim to enable the facility to support advanced packaging in high volumes.

The latest Intel update on construction progress contains little detail as to the status of the German build, but does mention an apprenticeship program to train local workers to run the facility when complete.. Intel needed about 3,000 staff to run the plant, but its three-year apprenticeship program reportedly had just two candidates enrolled for 2023, and 20 slated to start in 2024.

In addition to fabs, Intel has also made upgrades to existing facilities – including Fab 34 in Ireland, where the story is much the same as the others. Announced alongside Intel's investment in Germany, the Leixlip, Ireland-based fab was due to receive a €12 billion investment to upgrade the facility to support EUV lithography necessary to produce chips using the Intel 4 process.

United Kingdom Latest News, United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Suppliers to Intel and TSMC's Arizona fabs now face build delaysYou know where plants are much cheaper to construct? Asia
Source: TheRegister - 🏆 67. / 61 Read more »

Samsung reveals genius way to help you save money on food using AI in your FRIDGE...Samsung reveals genius way to help you save money on food using AI in your FRIDGE
Source: TheSun - 🏆 64. / 61 Read more »

Chip War Escalates as China Bans Intel, AMD Chips in Government ComputersChina is phasing out US-made chips and software from government computers in favor of domestic alternatives, aiming for technological independence amidst rising tensions with the US.
Source: OilandEnergy - 🏆 34. / 68 Read more »

Gelsinger woos Musk as Intel seeks to drum up Foundry Services businessIt's just not economical for Chipzilla to be the factories only customer these days
Source: TheRegister - 🏆 67. / 61 Read more »

Beijing issues list of approved CPUs – with no Intel or AMD2024 may be the year of Linux On The Arm-or-RISC-desktop as China moves away from Western tech
Source: TheRegister - 🏆 67. / 61 Read more »

Why Biden Proposed a UN Ceasefire Resolution That Was Vetoed by Russia and ChinaPresident Joe Biden speaks at the Intel Ocotillo Campus in Chandler, Arizona, on March 20, 2024.
Source: TIME - 🏆 93. / 53 Read more »