An economic recession would not deter Intel Corp from continuously investing in new processor technologies and capacity expansion to support long-term growth, CEO Pat Gelsinger said on Tuesday.
The US chipmaker has adopted a more austere approach to investment in the near term amid an industry downcycle and macroeconomic uncertainty.
It has also become more “thoughtful” about operational investment, Gelsinger told reporters in a question-and-answer session following his keynote speech at this year’s Intel Innovation in San Jose, California.
Photo courtesy of Intel Corp via CNA
“When is the last time that a recession lasts for four or five years,” he asked. “Its impact on the industry may last several quarters like two, three or four quarters.”
However, it would take chipmakers 12 to 14 quarters to build a new fab, he said.
Developing a new processor architecture, or a core process technology requires multiple years of investments and efforts, he added.
“You cannot be driven by near-term financials,” Gelsinger said. “We are investing for the long term. That’s our strategy.”
Intel is spending on building process technology to earn technology leadership in four or five years, he said.
The company is investing in building fabs to ramp up those technologies across diverse segments from networking, graphics, automotive to data center businesses, he said.
Intel is helping build more globally balanced and resilient semiconductor supply chains to help meet growing demand for advanced semiconductors worldwide through the company’s IDM2.0 strategy, he said.
At the heart of its course is Moore’s Law, he said.
Moore’s Law is alive and well, he said, refuting Nvidia CEO Jensen Huang’s (黃仁勳) claim last week that Moore’s Law “is dead.”
He attributed breakthroughs in lithography and core of semiconductor manufacturing with advanced packaging technologies to the assertion.
Intel is on schedule, or even ahead of its schedule in developing five nodes in four years, Gelsinger said.
Normally, it takes two years to develop a node based on the law, he added.
“We will not rest until the periodic table is exhausted. We will continue to be the stewards of Moore’s Law into the future,” he said.
Intel expects to deliver its first 18A test chip by the end of the year, he said.
Intel’s 18A process technology is equivalent to the 2-nanometer technology developed by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). TSMC plans to start volume production of 2-nanometer chips in 2025.
As part of Intel’s IDM2.0 strategy, it is building more new capacity, including factories in Arizona and Ohio.
The chipmaker is also working on new capacity expansion projects in Israel, Ireland and Malaysia, it said.
Asked whether US control over chip exports to China would affect Intel’s chip design, or its IDM2.0 strategy, Gelsinger said there would be no change.
He said that oil reserves have defined geopolitics for the past five decades, but fabs and technology supply chains would be more important in the next five decades.
The chipmaker unveiled its latest-generation, 13th Gen Core i9-13900k processor for desktop computers, the world’s fastest desktop processor. The 13th Gen Intel Core family includes six new unlocked desktop processors with up to 24 cores and 32 threads and clock speeds of up to 5.8GHz for the best gaming, streaming and recording experience, it said.
With the new desktop processor and upcoming notebook processor, Intel believes overall PC shipments would return to growth next year, after a forecast decline this year, Sam Gao (高嵩), Intel vice president of Intel’s desktop processor business, told reporters in Taipei yesterday.
High-end gaming desktop and those designed for creators would be the major drivers, Gao said.
Local suppliers of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) appear to be divided over whether they should follow the chipmaker and also set up production facilities in the US, after TSMC announced that it would increase its investment in Arizona. While some TSMC suppliers, including clean-room design service provider United Integrated Services Co (漢唐集成), have set up plants in the US, others, such as IC testing and analysis provider Materials Analysis Technology Inc (閎康科技), have hesitated to make the move because of high production costs in the US. TSMC on Tuesday announced that it would increase its planned US$12 billion investment in
Netherlands-based ASML Holding NV, a leading global supplier of semiconductor production equipment, is considering bringing its European suppliers to Taiwan, doubling down on its supply-chain deployment in the country, Vice Premier Shen Jong-chin (沈榮津) said yesterday. That follows ASML’s announcement that it would build manufacturing facilities in New Taipei City’s Linkou District (林口) to support international customers and the development of the semiconductor industry. RELOCATION Shen did not disclose details about ASML’s new efforts to relocate European supply chains to Taiwan. ASML is to begin construction on the New Taipei City project in July, Shen said during a speech at a technology forum
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is to build a wafer fab deploying 1 nanometer (nm) process technology at the Longtan (龍潭) campus of Hsinchu Science Park (新竹科學園區), Hsinchu Science Park Bureau Director-General Wayne Wang (王永壯) said yesterday. The bureau completed a pilot project in the middle of last month for the third expansion phase of the Longtan Science Park (龍潭科學園區) in Taoyuan to accommodate the new TSMC plant, Wang told a news conference. The pilot expansion project has been submitted to the National Science and Technology Council, which would next forward the project to the Cabinet for approval, Wang said. “The efforts
MORE ADVANCED CHIPS: The company is planning to build a second, 3-nanometer fab in Arizona, TSMC said ahead of a ‘tool-in’ ceremony at its first plant near Phoenix Apple Inc is to be the biggest customer of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) new Arizona factories, Apple CEO Tim Cook wrote on Twitter yesterday. “Apple silicon unlocks a new level of performance for our users. And soon, many of these chips can be stamped ‘Made in America.’ The opening of TSMC’s plant in Arizona marks a new era of advanced manufacturing in the US — and we are proud to become the site’s largest customer,” he wrote. Cook’s tweet came as TSMC held a “tool-in” ceremony for its US$12 billion wafer fab in Arizona on Tuesday, which marked the beginning