Intel announced that it will be entering the foundry (consigned semiconductor production) business again, and it is expected to bring a big wave to the current foundry market, led by companies such as Samsung Electronics, Global Foundries, and UMC, mainly TSMC.
Intel Pat Gelsinger’s new CEO (Chief Executive Officer) mentioned strengthening manufacturing capability as a key factor in the’IDM 2.0′ vision announced on the 23rd (local time). It announced that it will invest trillion won.
Accordingly, Intel plans to attract external customers by establishing a separate headquarters called’Intel Foundry Services (IFS)’.
According to Counterpoint Research’s Foundry Capacity Tracker, the foundry market is expected to reach $90 billion (100 trillion won) in 2021.
Neil Shah, vice president of Counterpoint Research, said, “As the Corona 19 pandemic continues, demand for semiconductors has increased unprecedentedly. There is a risk of causing it. At the same time, as the economic cold war is intensifying, large IT companies are aiming for diversification of manufacturers and self-sufficiency of semiconductors.”
“They are investing billions of billions to build a new foundry and minimize their dependence on semiconductors. Intel and the US government take advantage of the current severe supply and demand imbalance as an opportunity to lead a new era of advanced computing, communication and connectivity. I want to do it.”
“The latest IDM 2.0 strategy shows Intel’s plan to revive manufacturing capabilities,” said Dale Gai, analyst at Counterpoint Research. “Intel will expand its business through a variety of strategies, and it has a clear advantage of local production in the US. . Intel entered the foundry services market several years ago by selling 14/22 nanotechnology, but it did regrettably in both market share and profitability. When it enters the market again, Intel is competing with TSMC and Samsung Foundry, which monopolize large amounts of outsourcing orders with high technology.”
Regarding Intel’s entry into the market, Counterpoint Research analyst Lim Soo-jeong said, “It is expected that Intel will take more than three years to lay the foundations for the business, but in the end, we have enough technology and potential to form a three-way game with TSMC and Samsung.” Said.
He continued, “In particular, new technologies, including 5G, IoT, AI, and connected cars, require more semiconductors, so there is a clear demand segment. Intel’s entry into the foundry seems to revisit Samsung’s move many years ago. Intel is expected to expand its business starting with US companies.”
Reporter Hyun Hwa-young [email protected]
Photo = Counterpoint Research
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