Recently, Intel and TSMC have both solidified their latest process technology advancements and future global production plans. In 2024, Intel officially initiated its internal reorganization. With increased confidence, Intel aims to surpass Samsung Electronics by 2030, becoming the second-largest semiconductor foundry. This goal is expected to be achieved as early as 2024.
In recent years, Intel has faced challenges such as manufacturing delays, platform transitions, and misaligned market strategies, which allowed competitors like AMD and Nvidia to rapidly gain ground. Intel also faced setbacks in process technology, being overtaken by TSMC and followed closely by Samsung.
Sources within the semiconductor industry pointed to 2006 as a turning point for Intel. Back in 2005, Apple transitioned its Mac platform to x86 processors, and Steve Jobs had hoped to collaborate further with Intel to develop the first-generation iPhone processor. However, this proposal was rejected by Paul Otellini, a decision that led Intel to miss the smartphone revolution initiated by the iPhone and later acknowledged as a missed opportunity.
In recent years, Intel initiated a major transformation effort. The company officially announced its IDM 2.0 strategy, which involves internal reorganization of its design and manufacturing departments. This move aims to reclaim a leading position in process technology, expand third-party semiconductor manufacturing capabilities, and undertake large-scale production expansion to strengthen its global foundry business.
Regarding manufacturing capabilities, Intel's heavy investment in building factories in Europe and the United States has been met with some conservative views from the industry. While there is room for improvement in terms of cost and efficiency, Intel's strong advantage lies in comprehensive support from the U.S. government, and it's expected to secure favorable incentives from European countries where it plans to establish production facilities.
With TSMC's establishment of overseas facilities, factors like profitability and cost control have been affected, providing Intel an opportunity to narrow the competitive gap. As Intel's internal reorganization plan takes effect, its manufacturing department is expected to become more efficient, leading to increased production capacity.
Intel's earlier investment announcements include building two wafer fabs in Germany, a research and design center in France, and expanding research and advanced packaging capabilities in Ireland, Italy, Poland, and Spain. Additionally, Intel plans to build a wafer fab in Israel.
In the United States, Intel is expanding its investment in an advanced packaging facility in New Mexico and constructing two wafer fabs in Ohio with an initial investment exceeding US$20 billion.
In Asia, Intel has assembly and test facilities in Vietnam, Malaysia, and Chengdu. The Penang PGAT factory in Malaysia handles assembly and testing for multiple product lines. The Failure Analysis Lab is responsible for analyzing CPU failures, while the Intel Validation Lab performs various validations for CPUs, GPUs, and FPGAs.
TSMC recently announced plans for a 12-inch fab in Germany, similar to the joint venture model of its Kumamoto fab in Japan. This venture with Bosch, Infineon, and NXP will establish European Semiconductor Manufacturing Company (ESMC) with a monthly capacity of about 40,000 wafers, focusing on the automotive and industrial markets. Construction is expected to begin in the second half of 2024, with mass production targeted for the end of 2027.
Industry insiders believe that with strong U.S. support, Intel is confident in catching up to TSMC in the 2nm generation. While it is confirmed that Intel will surpass Samsung as the second-largest semiconductor foundry by 2024, the focus will be on how both companies will compete and cooperate in terms of profitability and outsourcing to TSMC.
