Intel has recently entered into an agreement with Taiwan’s UMC to produce chips at its Arizona fabs, aligning with the US CHIPS Act to boost chip manufacturing capacity in the US. This move signifies a significant shift in the semiconductor industry, blending technological expansion with geopolitical dynamics.
UMC and Intel will collaborate to develop new manufacturing technology for networking, mobile, and communication infrastructure applications, with production set to commence in Ocotillo, Arizona, in 2027. This partnership aims to provide customers with access to a diverse semiconductor supply chain.
The consequences of an over-concentrated semiconductor supply chain have been evident in the shortage of PCs, phones, and other electronic devices following the COVID lockdowns. This collaboration seeks to address these supply chain challenges.
UMC’s customers include mobile chip makers Qualcomm and MediaTek, and the current geopolitical tensions in Taiwan raise concerns about supply chain diversity.
Intel’s shift from being a design-only business to expanding its manufacturing capacity is a strategic move. The company’s partnership with UMC represents a shift from solely designing and manufacturing its own devices to entering the foundry business, becoming an agnostic manufacturer.
The collaboration between Intel and UMC is expected to reduce costs, enable UMC’s entry into the FinFET market, and enhance Intel’s foundry model transition, potentially reshaping the semiconductor industry.
While the impact on semiconductor prices remains uncertain, the market is expected to welcome more competition. UMC has not disclosed further details about the deal.
The US aims to increase semiconductor capacity onshore, and this collaboration with UMC aligns with that goal.
2024-02-03 17:00:03
Post from www.computerworld.com