Intel has postponed a $200 billion new fab construction plan or needs more time to consider

Intel CEO Pat Gelsinger shared the "IDM 2.0" vision at the March event this year, creating Intel Foundry Services (IFS), a major innovation in Intel's IDM model. To accelerate the implementation of the IDM 2.0 strategy, Intel will significantly expand production capacity, after investing about $20 billion to build two new fabs (Fab 52 and Fab 62) at the Octillo campus in Arizona, USA.

For Intel's massive capacity expansion program, the $20 billion investment is only a fraction of that. In fact, Intel's original planned overall investment scale will exceed $200 billion, including the construction of new fabs in the United States and Europe, as well as the upgrading of related facilities around the world, such as intel recently invested $7 billion to build a new chip packaging and test plant in Malaysia to strengthen semiconductor production capacity worldwide.

Intel's plan of up to $200 billion was scheduled to be announced by the end of this year, mainly involving large-scale new projects in the United States and Europe. However, according to TomsHardware, Intel has postponed the time to early 2022, which may involve complex issues encountered in the project and need to consider the impact of many factors, such as such large-scale investment involving government subsidies and tax incentives.

Intel has previously announced that it will build a semiconductor manufacturing center in the United States, the new manufacturing base will have 6 to 8 semiconductor manufacturing modules, using Intel's most advanced manufacturing technology (4nm or 3nm process) and chip packaging (such as EMIB and Coveros packaging technology) facilities, and there will be a dedicated power plant. Each semiconductor manufacturing module would cost between $10 billion and $15 billion, and Pat Kissinger said he plans to invest $100 billion.

Earlier, there were media reports that Intel would build a factory cluster in two phases in Europe, the first phase would first invest about $20 billion to build two fabs, and then build six fabs in stages, and its plant area would eventually have eight fabs, becoming a $100 billion semiconductor manufacturing base.