https://safirsoft.com Intel has fallen - and its future now depends on building chips for other people

Intel wants to become a foundry again. Will this time be different?

Last month, Intel CEO Pat Gelsinger took to the podium on a foggy and windy day outside Phoenix. "Isn't that cool!" Gelsinger shouted and pointed to his shoulder. Behind him, two large pieces of construction equipment fell theatrically atop Acroza, Arizona, arranging a series of pipes, steel, and fences on the Okotilo University campus. "If that doesn't excite you, check your pulse," he said with a laugh. A few directors and government officials in the right places applauded.

Despite the dust, Gelsinger seemed to be really enjoying himself. He was in Arizona to announce that not one, but two new plants that, when completed, would bet $20 billion that Intel could return to the forefront of the semiconductor industry, one of the most lucrative, challenging, and hard-working jobs in the world.

"Semiconductors are an important issue these days." "Which aspect of your life is not increasingly affected by digital transformation? If there's a question about it, COVID has removed it."

Pat Gelsinger, CEO of Intel, speaks before the company opens at the Ocotillo campus, where two new $20 billion plants are under construction.For this kind of investment, it makes sense that semiconductor manufacturers would have to mass-produce and sell chips. “When you have bulk orders, you can do tests, you can improve your performance, and performance is everything because it pays for itself that way,” says Willie Shea, professor of management at Harvard Business School.

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This is why Intel, under Gelsinger's leadership, is now doing something that has historically been neglected. "We are now a foundry," Gelsinger said of the Arizona initiative. In the coming years, he said, "Intel will open our factory to the general public to meet the casting needs of our customers—many of whom are American companies that today rely solely on outside sources of supply."

But becoming a leading maker of castings isn't just about building factory and telling customers you have the space to make your own chips.Glsinger has to change Intel's culture and, to some extent, its technology, both of which are profound.He has to run a big ship," says Robert Mayer, senior semiconductor consultant, while the company offers a business model New, it must redouble its R&D efforts while continuing to monitor cash flows.(Intel has lagged so far that it is now planning to outsource production of its more advanced chips—and a portion of the associated profits—to TSMC.) This transition requires a great deal of focus. "The casting business can be a distraction," Shi said. "If Intel does not change over time, it may be abandoned. There will be many challenges and there will be trials to be faced. It will be difficult."

Intel has fallen - and its future now depends on building chips for other people
intel-has-fallen-and-its-future-now-depends-on-building.html

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