Intel to manage chip manufacturing and foundry as a separate business

by time news

2023-06-22 13:40:00

Intel is making a new bid for a chip foundry service, and by “foundry” is meant a company that makes chips but doesn’t design them. So it should come as no surprise to anyone that Intel created Intel Foundry Services as a separate company within its conglomerate of companies rather than as another business unit. But it will also decouple chip production itself, so production and foundry will be included in their own separate sections of the company’s quarterly financial reports.

When Intel tried to have a foundry service, an attempt that only lasted a few years, it only considered the foundry part in financial reports, since in-house manufacturing was still within the company structure. The new structure is that the development of lithographs, factories and the foundry service is a new division totally separate from the main structure of the company.

It would be a foundry service for both third parties and Intel divisions that choose to use Intel’s own factories for production, opening up those divisions that they choose if they want to to other foundries to produce their chips. For example, the Meteor Lake, where most of the chips will be produced by the Taiwanese TSMC.

The new movement to create an independent foundry, as Samsung also has in the form of Samsung Foundry, with the development of lithographs falling to it, is designed to cover the cost of developing new lithographs. The costs in this section have skyrocketed in the last decade, so producing chips for third parties serves to finance it and keep Intel factories at maximum capacity at any time. It is a way of making production more flexible by choosing between Intel and others, and of weathering economic storms. Thus, by volume of production, Intel Foundry Services will become the second largest foundry on the planet.

Via:
Tom’s Hardware.

#Intel #manage #chip #manufacturing #foundry #separate #business

You may also like

Leave a Comment