Intel CEO Pat Gelsinger Announces ‘IDM 2.0’ Strategy for Manufacturing, Innovation and Product Leadership | Intel Newsroom

Intel’s newest factory, Fab 42, became fully operational in 2020 on the company’s Ocotillo campus in Chandler, Arizona. Fab 42 produces microprocessors using the company’s 10nm manufacturing processes. In March 2021, Intel announced a $20 billion investment to build out two new factories (or “fabs”) on the Ocotillo campus. The company expects to begin planning and construction activities this year. (Credit: Intel Corporation)
Intel’s Ocotillo campus in Chandler, Arizona, is the company’s largest U.S. manufacturing site. Four factories are connected by a mile-long automated superhighway to create a mega-factory network. In March 2021, Intel announced it will invest about $20 billion to build two additional factories at the Ocotillo campus. (Credit: Intel Corporation)
During recording of the “Intel Unleashed: Engineering the Future” webcast, Intel CEO Pat Gelsinger highlights “Ponte Vecchio,” Intel’s first exascale graphics processing unit. During the webcast on March 23, 2021, Gelsinger outlines the company’s path forward to manufacture, design and deliver leadership products and create long-term value for stakeholders. (Credit: Walden Kirsch/Intel Corporation)
During recording of the “Intel Unleashed: Engineering the Future” webcast, Intel CEO Pat Gelsinger outlines the company’s path forward to manufacture, design and deliver leadership products and create long-term value for stakeholders. On March 23, 2021, Gelsinger shared his vision for “IDM 2.0,” a major evolution of Intel’s integrated device manufacturing model. (Credit: Walden Kirsch/Intel Corporation)
Intel’s chip manufacturing operation inside Fab D1D at the company’s Ronler Acres campus in Hillsboro, Oregon. (Credit: Intel Corporation)
Production and clean room facilities at work in Intel’s D1D/D1X plant in Hillsboro, Oregon. (Credit: Walden Kirsch/Intel Corporation)

NEWS HIGHLIGHTS

SANTA CLARA, Calif., March 23, 2021  Today, Intel CEO Pat Gelsinger outlined the company’s path forward to manufacture, design and deliver leadership products and create long-term value for stakeholders. During the company’s global “Intel Unleashed: Engineering the Future” webcastGelsinger shared his vision for “IDM 2.0, major evolution of Intel’s integrated device manufacturing (IDM) modelGelsinger announced significant manufacturing expansion plans, starting with an estimated $20 billion investment to build two new factories (or “fabs”) in Arizona. He also announced Intel’s plans to become a major provider of foundry capacity in the U.S. and Europe to serve customers globally.  

More News and Resources: Engineering the Future (Press Kit) 

We are setting a course for a new era of innovation and product leadership at Intel,” said Gelsinger. “Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in.” 

IDM 2.0 represents the combination of three components that will enable the company to drive sustained technology and product leadership:

To accelerate Intel’s IDM 2.0 strategyGelsinger announced significant expansion of Intel’s manufacturing capacity, beginning with plans for two new fabs in Arizona, located at the company’s Ocotillo campus. These fabs will support the increasing requirements of Intel’s current products and customers, as well as provide committed capacity for foundry customers.  

This build-out represents an investment of approximately $20 billion, which is expected to create over 3,000 permanent high-tech, high-wage jobs; over 3,000 construction jobs; and approximately 15,000 local long-term jobsToday, Arizona Gov. Doug Ducey and U.S. Secretary of Commerce Gina Raimondo participated with Intel executives in the announcement. Gelsinger commented: “We are excited to be partnering with the state of Arizona and the Biden administration on incentives that spur this type of domestic investment.” Intel expects to accelerate capital investments beyond Arizona, and Gelsinger said he plans to announce the next phase of capacity expansions in the U.S., Europe and other global locations within the year. 

Intel plans to engage the technology ecosystem and industry partners to deliver on its IDM 2.0 vision. To that end, Intel and IBM today announced plans for an important research collaboration focused on creating nextgeneration logic and packaging technologies. For more than 50 years, the two companies have shared a deep commitment to scientific research, world-class engineering and a focus on bringing advanced semiconductor technologies to market. These foundational technologies will help unleash the potential of data and advanced computation to create immense economic value.

Leveraging each company’s capabilities and talent in Hillsboro, Oregon, and Albany, New York, this collaboration aims to accelerate semiconductor manufacturing innovation across the ecosystem, enhance the competitiveness of the U.S. semiconductor industry and support key U.S. government initiatives. 

Finally, Intel is bringing back the spirit of its popular Intel Developer Forum event this year with the launch of Intel Ona new industry event series. Gelsinger encouraged technology lovers to join him at this year’s Intel Innovation event planned for October in San Francisco. 

For more information and to watch a replay of today’s webcast, visit the Intel Newsroom or Intel’s investor relations website. 

Forward-Looking Statements 

Statements in this press release that refer to future plans and expectations, including with respect to Intel’s strategy, internal and external manufacturing plans, manufacturing expansion and investment plans including Intel’s anticipated Arizona expansion, plans and goals related to Intel’s foundry business, future products and technology, and Intel’s planned research collaboration with IBM, are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “may,” “will,” “would,” “should,” “could,” “strategy,” “progress,” “path,” “vision,” “course,” “formula,” “accelerate,” and “committed” and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements that refer to or are based on estimates, forecasts, projections, and uncertain events or assumptions, including statements relating to the benefits of Intel’s strategy; the availability and benefits of future products and technology, including with respect to Intel’s 7nm and future manufacturing processes, packaging technology, and 2023 products; manufacturing and design goals and progress; future internal manufacturing volumes; external foundry usage and related benefits; future manufacturing capacity including with respect to Intel’s foundry business; investment returns and benefits; government incentives; the nature, timing, and benefits of Intel’s manufacturing expansion, including its Arizona expansion; benefits related to Intel’s foundry business; foundry service offerings, including IP offerings; benefits related to Intel’s planned research collaboration with IBM; supply expectations; market opportunity; anticipated trends in Intel’s businesses or the markets relevant to them; and future announcements also identify forward-looking statements.  

Such statements are based on management’s current expectations and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Important factors that could cause actual results to differ materially from the company’s expectations include, among others, Intel’s failure to realize the anticipated benefits of its strategy and plans; risks related to increased use of external foundries, including risks of increased costs, insufficient foundry capacity, and schedule delays; increases in capital requirements and changes in capital investment plans; construction delays or changes in plans due to business, economic, or other factors; risks related to Intel’s foundry business plans, including risks of failure of Intel’s foundry service offerings to achieve or maintain market acceptance or demand, inability to manage and allocate manufacturing capacity successfully, delays in the development of new and competitive manufacturing technologies, failure to compete successfully across factors such as technology, capacity, price, ease of use, quality, and customer satisfaction, deterioration in demand for global foundry services, actions taken by competitors, lack of ecosystem support, and the risk that Intel may not realize an adequate return on its foundry business investments; adverse impacts of strategy announcements on Intel’s business and business relationships; risks that Intel’s planned research collaboration with IBM may not be consummated or the anticipated benefits realized; as well as the factors set forth in Intel’s earnings release dated January 21, 2021, which is included as an exhibit to Intel’s Form 8-K furnished to the SEC on such date, and Intel’s SEC filings, including the company’s most recent report on Form 10-K. Copies of Intel’s SEC filings may be obtained by visiting Intel’s Investor Relations website at www.intc.com or the SEC’s website at www.sec.gov. Intel does not undertake, and expressly disclaims any duty, to update any statement made in this press release, whether as a result of new information, new developments or otherwise, except to the extent that disclosure may be required by law.