Intel has unveiled its so-called IDM 2.0 strategy, with a US$20 billion plan to build two fabs in the US to beef up its manufacturing capacity, plus a new business unit for providing foundry services. The move comes amid tight supply across many different semiconductor segments. Some analog IDMs have had to extend their delivery lead times to as long as 40 weeks for many segments in order to accomodate urgent demand for automotive applications. In the backend sector, demand for wire-bonding capacity is expected to stay robust throughout 2021.
Intel announces US$20 billion fab expansion plans in foundry revamp: Intel has announced plans to invest about US$20 billion to build two new fabs in Arizona in line with what it calls its IDM 2.0 strategy, seeking to become a major provider of foundry capacity in the US and Europe to serve worldwide customers.
Analog IDMs extending delivery lead times: Analog IDMs have prolonged their delivery lead times to as long as 40 weeks as they probably have given priority to producing automotive chips that have been in severe short supply, according to sources at Taiwan-based OEMs.
Wire-bonding capacity to sustain full utilization throughout 2021: IC backend houses are expected to run their mainstream wire-bonding packaging lines at full capacity through the end of the year to meet strong demand for automotive and consumer chips, and their supply of flip-chip (FC) packaging remains constrained due to substrate shortages, according to industry sources.