Intel is undergoing a major transformation, with its foundry business embodying the "Made in America" mission supported by US President Donald Trump. Naga Chandrasekaran, Intel's EVP and general manager of Intel Foundry Technology and Manufacturing organization at Intel, stated that integrating customer feedback into technology development and fostering close collaboration will be central to Intel's future growth.
The shift in Intel's process nodes and advanced packaging technologies underscores a need for accelerated technological progress. Previously, delays in advancing 10nm technology led to a goal of achieving five nodes in four years. To enhance competitiveness and meet customer demands, Intel must develop a stable technology blueprint.
Intel to expand its foundry business
Chandrasekaran emphasized that rising global computing demands from generative AI are transforming the semiconductor industry. In this change, Intel is redefining its role by focusing on manufacturing advantages through Intel Foundry Services (IFS).
"AI is revolutionizing technology, particularly in cloud and edge computing, leading to a surging demand for semiconductor manufacturing," stated Chandrasekaran. While generative AI amplifies design complexity, it also necessitates flexible and customizable wafer fabrication. Although traditional foundries have concentrated on leading-edge process nodes, the AI era requires them to deliver extensive support, encompassing advanced packaging, IP ecosystem integration, EDA tool compatibility, and design assistance.
Intel aims to not only create advanced process technologies but also establish a service platform to help customers boost innovation, minimize risks, and ensure supply chain resilience.
Chandrasekaran highlighted that IFS's strategy is a profound mindset shift, focusing on becoming a customer-centric manufacturing partner. This involves offering advanced process technologies and advanced packaging techniques like EMIB and Foveros, silicon intellectual property platforms, design support tools, EDA certification flows, and integration capabilities across the supply chain.
This development is a pivotal moment for Intel's IDM 2.0 strategy, as it allows the company to establish a large-scale foundry platform. This platform helps offset manufacturing costs and attracts various chip design companies, thereby broadening Intel's ecosystem and increasing its market share.
Lip-Bu Tan reshapes foundry culture by implementing a flat organizational structure.
Intel, under new CEO Lip-Bu Tan, is focused on enhancing its foundry capabilities to meet technology and capacity demands. The key priority is aligning with customer needs and integrating them into their strategy. With the semiconductor industry relying on multiple foundry sources, Intel is dedicated to building customer trust and delivering results, confident in their future success.
Chandrasekaran highlighted recent strategic changes in the foundry business under Tan's leadership, emphasizing efforts to simplify senior management and flatten the organizational structure. The focus is on eliminating hierarchical barriers and reducing bureaucracy to enable faster decision-making. This approach includes integrating R&D and manufacturing into unified units to better meet customer needs.
Intel has shifted from a vertical organizational structure, once focused on serving individual customers, to a more dynamic model that caters to a broader clientele. This transformation aims to enhance agility and efficiency. Technologically, Intel remains at the forefront with its advanced transistor development, including backside power delivery and innovative packaging technologies, ensuring a unique competitive edge.
Chandrasekaran stated that Intel is actively assessing high-NA EUV equipment, taking into account advanced process strategies, costs, implementation, and production schedules.
Intel partners with MediaTek on Intel 16
Intel is prioritizing the stable rollout of its Intel 16 process node, beginning with its collaboration with MediaTek as the initial customer. Additionally, Intel is making this process node available to more foundry clients.
Intel is implementing a multi-site layout strategy for global expansion and technological rollout, tailoring production based on the process maturity at each site. Intel 4/3 is now in stable mass production, whereas Intel 18A is in its initial expansion phase. This distributed approach helps to manage complexities by avoiding the concentration of multiple nodes within a single fabrication facility.
Intel maintains consistency across its global operations by transferring expertise from Ireland's Intel fabs to those in Arizona and Oregon. This strategy encourages collaborative exchanges among teams in Ireland, New Mexico, Malaysia, and other locations, fostering a cross-cultural and cross-regional model of innovation.
Chandrasekaran stated that the tariff situation is dynamic, and Intel is working closely with government agencies to stay updated on policy changes. With a robust supply chain across Europe, the US, and Asia, Intel is well-equipped to satisfy global customer needs.
Article edited by Jack Wu
