Throw $20 billion! Intel dropped 2nm this move first

Recently, according to Reuters, Intel will invest $20 billion to build two chip manufacturing plants in Ohio, USA, starting construction in the second half of 2022 and expected to be put into operation in 2025. Intel's ultimate plan is rumored to be to invest $100 billion in eight fabs to build the world's largest chip manufacturing base in Ohio.

Some say it was a gamble, but I think it's the result of Intel's deliberations. If the fab is built, it will be a safe and profitable transaction. Previously, Intel CEO Kissinger also said that the total annual sales of the semiconductor industry has just exceeded $500 billion, which is expected to double by 2029, and in order to expand Intel's market share, it must invest and expand production capacity at a rate of more than double.

It is worth noting that in the 5G era, on the one hand, digital scenes in various fields are becoming more and more abundant, and the demand for chips remains high. On the other hand, the shortage of chips has intensified, making the chip industry chain more fragile. Therefore, countries have increased chip manufacturing, the United States in 2021 proposed a $52 billion chip subsidy bill, step up the return of chip manufacturing, Intel plans to build a fab project of $100 billion not only in line with the development direction of American semiconductors, but also aimed at the next five years of chip technology trends, taking the first step in Intel's huge semiconductor industry layout.

It is reported that the two Ohio plants announced by Intel will be responsible for the production of 2nm and 1.8nm processes for mass production in 2025.

In this regard, Sun Yongjie, a senior expert in the communication industry, said that for Intel, whether from the perspective of chip design cost, technology iteration, or market competition, process upgrading is the only way. As we all know, chip manufacturing has always been one of Intel's core competitiveness, and the construction of the fab is also a necessary option for Intel to reshape its core competitiveness. In addition, with the deepening of digital transformation, AR, VR, smart cars and other fields have a broader market space, but also need advanced processes to improve energy efficiency, 2nm fab if built, will undoubtedly lay a solid foundation for Intel to enter these fields.

From the perspective of the industrial chain, although this project cannot alleviate the problem of chip shortage, in the long run, if Intel can catch up with TSMC in advanced processes, in addition to meeting the chip self-sufficiency, it can also develop foundry business, so that the market can get rid of the status quo of TSMC, provide more choices for Apple, Qualcomm, ASML and other enterprises, and bring positive impact to the industrial chain.

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Author: Zhu Wenfeng

Editor-in-Charge/Layout: Fan Fan

Review: Shen Qing

Producer: Liu Qicheng

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