Just a couple of months after taking office, Intel’s new CEO Pat Gelsinger delivered on the expectations of a quick strategy change – and his plan caught many observers by surprise. Investors who had suggested Intel to embrace the fabless model will probably be disappointed, as Gelsinger – speaking at a webcast event on March 23 – announced just the opposite: not only will Intel increase its manufacturing capability, but it will also create a foundry business on its own. Gelsinger’s bold move resonates very well with the current climate characterized by geopolitical tensions, incentives from the Biden administration, and a severe chip shortage. However, turning his plan into reality might prove to be difficult, according to some observers.
Intel CEO Pat Gelsinger (Credit: Walden Kirsch/Intel Corporation)
A renewed technological self-confidence
One of the key elements of Intel’s new course is a renewed confidence in its internal technological capabilities. The company expects to continue manufacturing the majority of its products internally, and – as stated in a press release – the 7nm development is progressing well, driven by increased use of extreme ultraviolet lithography. Intel expects to tape out the compute tile for its first 7nm client CPU (code-named “Meteor Lake”) in the second quarter of this year. During the webcast, Intel officers reportedly did not directly address the issue of catching up with the leading foundries – as far as the 5nm and 3nm nodes are concerned. However, Gelsinger reportedly offered an explanation for Intel’s delay in moving to the most advanced process nodes: he said the company was too cautious about EUV lithography equipment and, to compensate, the designs got excessively complicated, leading to production problems. Gelsinger also announced a new research collaboration with IBM focused on creating next-generation logic and packaging technologies, which should clearly help Intel to catch up quickly. The internal capabilities on which the company is relying to fuel its new course include its expertise in advanced packaging technologies for chiplet-based devices.
