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| Intel is investing $ 20 billion to challenge Asian dominance |
After the new CEO announces plans to spend $ 20 billion to build two factories in Arizona and open factories to outside customers, Intel is drastically expanding its chip-making capabilities.
CEO Pat Gelsinger's move aims to restore Intel's reputation, which has brought inventory levels down sharply over the past year due to manufacturing delays.
This strategy poses a direct challenge to companies capable of making the most advanced chips, such as Taiwan's Taiwan Semiconductor Industry Corporation (TSMC) and South Korean company Samsung Electronics Co., Ltd. (Samsung Electronics from Korea).
The strategy also aims to rebalance the technological might of the United States and Europe as leaders on both continents begin to worry about the risks of concentrating Taiwan's chip industry amid tense relations with China.
Intel expects sales of 72 billion US dollars, while analysts have forecast 72.9 billion US dollars. The company has made it clear that it expects investments between $ 19 billion and $ 20 billion.
Kissinger said: The outlook for 2021 reflects the absence of certain components in the industry.
Intel is one of the remaining semiconductor companies that designs and manufactures its own chips, and competing chip designers such as Qualcomm and Apple rely on contract manufacturers.
Kissinger said, "Intel has completely resolved its problems with the latest manufacturing technology and all systems running on chips by 2023 and is now planning to expand manufacturing at scale."
Kissinger added $ 20 billion to build two new factories in Arizona, he said, "Intel will then work on future plants in the United States and Europe."
Intel uses these plants to manufacture its own chips, but is also opening them to external customers. New factories focus on manufacturing advanced computer chips more than on the old technology or expertise some of the manufacturers specialize in.
This is a direct challenge to TSMC and Samsung. They occupied a leading position in the semiconductor industry and shifted their focus from the USA to Asia. Currently, Asia has produced more than two-thirds of the advanced chips.
Intel is looking to change this global balance, and Amazon, Cisco, Microsoft and Qualcomm support Intel's efforts to provide chipmaking services.
Intel has also announced plans for a new research collaboration with IBM focusing on computer chip technology.