Intel CEO Pat Gelsinger Announces ‘IDM 2.0’ Strategy for Manufacturing, Innovation and Product Leadership


  • Announcing manu­fac­tu­ring expan­si­on plans; begin­ning with ~$20 bil­li­on invest­ment to build two new fabs in Ari­zo­na  
  • Intel 7 nano­me­ter pro­cess deve­lo­p­ment pro­gres­sing well with tape in of 7nm com­pu­te tile for “Mete­or Lake” expec­ted in the second quar­ter of 2021 
  • Announ­cing Intel Found­ry Ser­vices with plans to beco­me a major pro­vi­der of found­ry capa­ci­ty in the U.S. and Euro­pe to ser­ve cus­to­mers glo­bal­ly 
  • Announcing plans for new rese­arch col­la­bo­ra­ti­on with IBM 
  • Brin­ging the spi­rit of Intel Deve­lo­per Forum event back this year with Intel Inno­va­ti­on event plan­ned for Octo­ber in San Fran­cis­co 

SANTA CLARA, Calif., March 23, 2021  Today, Intel CEO Pat Gel­sin­ger out­lined the company’s path for­ward to manu­fac­tu­re, design and deli­ver lea­ders­hip pro­ducts and crea­te long-term value for sta­ke­hol­ders. During the company’s glo­bal “Intel Unleas­hed: Engi­nee­ring the Future” web­castGel­sin­ger shared his visi­on for IDM 2.0, major evo­lu­ti­on of Intel’s inte­gra­ted device manu­fac­tu­ring (IDM) modelGel­sin­ger announ­ced signi­fi­cant manu­fac­tu­ring expan­si­on plans, star­ting with an esti­ma­ted $20 bil­li­on invest­ment to build two new facto­ries (or “fabs”) in Ari­zo­na. He also announ­ced Intel’s plans to beco­me a major pro­vi­der of found­ry capa­ci­ty in the U.S. and Euro­pe to ser­ve cus­to­mers glo­bal­ly.  

More News and Resour­ces: Engi­nee­ring the Future (Press Kit) 

We are set­ting a cour­se for a new era of inno­va­ti­on and pro­duct lea­ders­hip at Intel,” said Gel­sin­ger. “Intel is the only com­pa­ny with the depth and bre­adth of soft­ware, sili­con and plat­forms, pack­a­ging, and pro­cess with at-sca­le manu­fac­tu­ring cus­to­mers can depend on for their next-genera­ti­on inno­va­tions. IDM 2.0 is an ele­gant stra­te­gy that only Intel can deli­ver – and it’s a win­ning for­mu­la. We will use it to design the best pro­ducts and manu­fac­tu­re them in the best way pos­si­ble for every cate­go­ry we com­pe­te in.” 

IDM 2.0 repres­ents the com­bi­na­ti­on of three com­pon­ents that will enab­le the com­pa­ny to dri­ve sus­tai­ned tech­no­lo­gy and pro­duct leadership:

  1. Intel’s glo­bal, inter­nal fac­to­ry net­work for at-sca­le manu­fac­tu­ring is a key com­pe­ti­ti­ve advan­ta­ge that enab­les pro­duct opti­miz­a­ti­on, impro­ved eco­no­mics and sup­ply resi­li­en­ce. Today, Gel­sin­ger re-affir­med the company’s expec­ta­ti­on to con­ti­nue manu­fac­tu­ring the majo­ri­ty of its pro­ducts intern­al­ly. The company’s 7nm deve­lo­p­ment is pro­gres­sing well, dri­ven by incre­a­sed use of extre­me ultra­vio­let litho­gra­phy (EUV) in a rear­chi­tec­ted, sim­pli­fied pro­cess flow. Intel expects to tape in the com­pu­te tile for its first 7nm cli­ent CPU (code-named “Mete­or Lake”) in the second quar­ter of this year. In addi­ti­on to pro­cess inno­va­ti­on, Intel’s lea­ders­hip in pack­a­ging tech­no­lo­gy is an important dif­fe­ren­tia­tor that enab­les the com­bi­na­ti­on of mul­ti­ple IPs or “tiles” to deli­ver uni­que­ly tailo­red pro­ducts that meet diver­se cus­to­mer requi­re­ments in a world of per­va­si­ve computing.
  2. Expan­ded use of third-par­ty found­ry capa­ci­ty. Intel expects to build on its exis­ting rela­ti­ons­hips with third-par­ty found­ries, which today manu­fac­tu­re a ran­ge of Intel tech­no­lo­gy – from com­mu­ni­ca­ti­ons and con­nec­ti­vi­ty to gra­phics and chip­sets. Gel­sin­ger said he expects Intel’s enga­ge­ment with third-par­ty found­ries to grow and to inclu­de manu­fac­tu­ring for a ran­ge of modu­lar tiles on advan­ced pro­cess tech­no­lo­gies, inclu­ding pro­ducts at the core of Intel’s com­pu­ting offe­rings for both cli­ent and data cen­ter seg­ments begin­ning in 2023. This will pro­vi­de the incre­a­sed fle­xi­bi­li­ty and sca­le nee­ded to opti­mi­ze Intel’s road­maps for cost, per­for­mance, sche­du­le and sup­ply, giving the com­pa­ny a uni­que com­pe­ti­ti­ve advantage.
  3. Buil­ding a world-class found­ry busi­ness, Intel Found­ry Ser­vices. Intel announ­ced plans to beco­me a major pro­vi­der of U.S.– and Euro­pe-based found­ry capa­ci­ty to ser­ve the incredi­ble glo­bal demand for semi­con­duc­tor manu­fac­tu­ring. To deli­ver this visi­on, Intel is estab­li­shing a new stan­da­lo­ne busi­ness unit, Intel Found­ry Ser­vices (IFS), led by semi­con­duc­tor indus­try vete­ran Dr. Rand­hir Tha­kur, who will report direct­ly to Gel­sin­ger. IFS will be dif­fe­ren­tia­ted from other found­ry offe­rings with a com­bi­na­ti­on of lea­ding-edge pro­cess tech­no­lo­gy and pack­a­ging, com­mit­ted capa­ci­ty in the U.S. and Euro­pe, and a world-class IP port­fo­lio for cus­to­mers, inclu­ding x86 cores as well as ARM and RISC‑V eco­sys­tem IPs. Gel­sin­ger noted that Intel’s found­ry plans have alrea­dy recei­ved strong enthu­si­asm and state­ments of sup­port from across the industry.

To acce­le­ra­te Intel’s IDM 2.0 stra­te­gyGel­sin­ger announ­ced signi­fi­cant expan­si­on of Intel’s manu­fac­tu­ring capa­ci­ty, begin­ning with plans for two new fabs in Ari­zo­na, loca­ted at the company’s Ocotil­lo cam­pus. The­se fabs will sup­port the incre­a­sing requi­re­ments of Intel’s cur­rent pro­ducts and cus­to­mers, as well as pro­vi­de com­mit­ted capa­ci­ty for found­ry cus­to­mers.  

This build-out repres­ents an investment of appro­xi­mate­ly $20 bil­li­on, which is expec­ted to crea­te over 3,000 per­ma­nent high-tech, high-wage jobs; over 3,000 con­struc­tion jobs; and appro­xi­mate­ly 15,000 local long-term jobsToday, Ari­zo­na Gov. Doug Ducey and U.S. Secreta­ry of Com­mer­ce Gina Rai­mondo par­ti­ci­pa­ted with Intel exe­cu­ti­ves in the announ­ce­ment. Gel­sin­ger com­men­ted: “We are exci­ted to be part­ne­ring with the sta­te of Ari­zo­na and the Biden admi­nis­tra­ti­on on incen­ti­ves that spur this type of domestic invest­ment.” Intel expects to acce­le­ra­te capi­tal invest­ments bey­ond Ari­zo­na, and Gelsin­ger said he plans to announ­ce the next pha­se of capa­ci­ty expan­si­ons in the U.S., Euro­pe and other glo­bal loca­ti­ons wit­hin the year. 

Intel plans to enga­ge the tech­no­lo­gy eco­sys­tem and indus­try part­ners to deli­ver on its IDM 2.0 visi­on. To that end, Intel and IBM today announ­ced plans for an important rese­arch col­la­bo­ra­ti­on focu­sed on crea­ting nextgenera­ti­on logic and pack­a­ging tech­no­lo­gies. For more than 50 years, the two com­pa­nies have shared a deep com­mit­ment to sci­en­ti­fic rese­arch, world-class engi­nee­ring and a focus on brin­ging advan­ced semi­con­duc­tor tech­no­lo­gies to mar­ket. The­se foun­da­tio­nal tech­no­lo­gies will help unleash the poten­ti­al of data and advan­ced com­pu­ta­ti­on to crea­te immense eco­no­mic value.

Lever­aging each company’s capa­bi­li­ties and talent in Hills­bo­ro, Ore­gon, and Alba­ny, New York, this col­la­bo­ra­ti­on aims to acce­le­ra­te semi­con­duc­tor manu­fac­tu­ring inno­va­ti­on across the eco­sys­tem, enhan­ce the com­pe­ti­ti­ve­ness of the U.S. semi­con­duc­tor indus­try and sup­port key U.S. government initia­ti­ves. 

Final­ly, Intel is brin­ging back the spi­rit of its popu­lar Intel Deve­lo­per Forum event this year with the launch of Intel Ona new indus­try event seri­es. Gel­sin­ger encou­ra­ged tech­no­lo­gy lovers to join him at this year’s Intel Inno­va­tion event plan­ned for Octo­ber in San Fran­cis­co. 

For more infor­ma­ti­on and to watch a replay of today’s web­cast, visit the Intel News­room or Intel’s inves­tor rela­ti­ons web­site. 

For­ward-Loo­king Statements 

State­ments in this press release that refer to future plans and expec­ta­ti­ons, inclu­ding with respect to Intel’s stra­te­gy, inter­nal and exter­nal manu­fac­tu­ring plans, manu­fac­tu­ring expan­si­on and invest­ment plans inclu­ding Intel’s anti­ci­pa­ted Ari­zo­na expan­si­on, plans and goals rela­ted to Intel’s found­ry busi­ness, future pro­ducts and tech­no­lo­gy, and Intel’s plan­ned rese­arch col­la­bo­ra­ti­on with IBM, are for­ward-loo­king state­ments that invol­ve a num­ber of risks and uncer­tain­ties. Words such as “anti­ci­pa­tes,” “expects,” “intends,” “goals,” “plans,” “belie­ves,” “seeks,” “esti­ma­tes,” “con­ti­nues,” “may,” “will,” “would,” “should,” “could,” “stra­te­gy,” “pro­gress,” “path,” “visi­on,” “cour­se,” “for­mu­la,” “acce­le­ra­te,” and “com­mit­ted” and varia­ti­ons of such words and simi­lar expres­si­ons are inten­ded to iden­ti­fy such for­ward-loo­king state­ments. State­ments that refer to or are based on esti­ma­tes, fore­casts, pro­jec­tions, and uncer­tain events or assump­ti­ons, inclu­ding state­ments rela­ting to the bene­fits of Intel’s stra­te­gy; the avai­la­bi­li­ty and bene­fits of future pro­ducts and tech­no­lo­gy, inclu­ding with respect to Intel’s 7nm and future manu­fac­tu­ring pro­ces­ses, pack­a­ging tech­no­lo­gy, and 2023 pro­ducts; manu­fac­tu­ring and design goals and pro­gress; future inter­nal manu­fac­tu­ring volu­mes; exter­nal found­ry usa­ge and rela­ted bene­fits; future manu­fac­tu­ring capa­ci­ty inclu­ding with respect to Intel’s found­ry busi­ness; invest­ment returns and bene­fits; government incen­ti­ves; the natu­re, timing, and bene­fits of Intel’s manu­fac­tu­ring expan­si­on, inclu­ding its Ari­zo­na expan­si­on; bene­fits rela­ted to Intel’s found­ry busi­ness; found­ry ser­vice offe­rings, inclu­ding IP offe­rings; bene­fits rela­ted to Intel’s plan­ned rese­arch col­la­bo­ra­ti­on with IBM; sup­ply expec­ta­ti­ons; mar­ket oppor­tu­ni­ty; anti­ci­pa­ted trends in Intel’s busi­nes­ses or the mar­kets rele­vant to them; and future announ­ce­ments also iden­ti­fy for­ward-loo­king state­ments.  

Such state­ments are based on management’s cur­rent expec­ta­ti­ons and invol­ve many risks and uncer­tain­ties that could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se expres­sed or implied in the­se for­ward-loo­king state­ments. Important fac­tors that could cau­se actu­al results to dif­fer mate­ri­al­ly from the company’s expec­ta­ti­ons inclu­de, among others, Intel’s fail­u­re to rea­li­ze the anti­ci­pa­ted bene­fits of its stra­te­gy and plans; risks rela­ted to incre­a­sed use of exter­nal found­ries, inclu­ding risks of incre­a­sed cos­ts, insuf­fi­ci­ent found­ry capa­ci­ty, and sche­du­le delays; incre­a­ses in capi­tal requi­re­ments and chan­ges in capi­tal invest­ment plans; con­struc­tion delays or chan­ges in plans due to busi­ness, eco­no­mic, or other fac­tors; risks rela­ted to Intel’s found­ry busi­ness plans, inclu­ding risks of fail­u­re of Intel’s found­ry ser­vice offe­rings to achie­ve or main­tain mar­ket accep­t­ance or demand, ina­bi­li­ty to mana­ge and allo­ca­te manu­fac­tu­ring capa­ci­ty suc­cess­ful­ly, delays in the deve­lo­p­ment of new and com­pe­ti­ti­ve manu­fac­tu­ring tech­no­lo­gies, fail­u­re to com­pe­te suc­cess­ful­ly across fac­tors such as tech­no­lo­gy, capa­ci­ty, pri­ce, ease of use, qua­li­ty, and cus­to­mer satis­fac­tion, dete­rio­ra­ti­on in demand for glo­bal found­ry ser­vices, actions taken by com­pe­ti­tors, lack of eco­sys­tem sup­port, and the risk that Intel may not rea­li­ze an ade­qua­te return on its found­ry busi­ness invest­ments; adver­se impacts of stra­te­gy announ­ce­ments on Intel’s busi­ness and busi­ness rela­ti­ons­hips; risks that Intel’s plan­ned rese­arch col­la­bo­ra­ti­on with IBM may not be con­sum­ma­ted or the anti­ci­pa­ted bene­fits rea­li­zed; as well as the fac­tors set forth in Intel’s ear­nings release dated Janu­a­ry 21, 2021, which is inclu­ded as an exhi­bit to Intel’s Form 8‑K fur­nis­hed to the SEC on such date, and Intel’s SEC filings, inclu­ding the company’s most recent report on Form 10‑K. Copies of Intel’s SEC filings may be obtai­ned by visi­t­ing Intel’s Inves­tor Rela­ti­ons web­site at or the SEC’s web­site at Intel does not under­ta­ke, and express­ly dis­c­laims any duty, to update any state­ment made in this press release, whe­ther as a result of new infor­ma­ti­on, new deve­lo­p­ments or other­wi­se, except to the extent that dis­clo­sure may be requi­red by law. 

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