Intel at a Crossroads: What the Future Holds
Recent opinions from Digitimes shed light on the future of Intel, highlighting some key considerations.
Intel has been facing challenges in making its foundry business profitable, prompting questions about whether the company should rethink its IDM model by separating its product design and manufacturing divisions. The intertwining of the two businesses poses a potential trust issue for the foundry business when trying to attract clients, many of whom are competitors of Intel’s product design arm.
In a significant move, Intel announced plans to spin off its foundry business into an independent subsidiary, drawing parallels to AMD’s transition to a chip design-focused company in 2008. This separation led to the establishment of GlobalFoundries (GF), now a prominent player in the global foundry industry.
However, potential challenges may arise if Intel decides to hand over its foundry operations to another entity, particularly concerning its agreements under the U.S. CHIPS Act, where Intel is a major beneficiary. Any split could trigger government scrutiny on the effective utilization of these funds.
Industry leaders, including former board members, offer conflicting advice on Intel’s path forward. While some advocate for a split to enhance the foundry business’s prospects, others like former CEO Craig Barrett suggest focusing on reclaiming Intel’s manufacturing technology lead to attract orders. Barrett believes that regaining this edge could persuade even Intel’s chip design competitors to utilize its foundry services.
Given Intel’s ongoing losses, sustaining both design and manufacturing efforts seems unsustainable without a strategic partner. Reports suggest Intel has approached Samsung Electronics for a potential “foundry alliance,” indicating a recognition of the need for collaboration to address the current challenges.
NAPMP Proposers Day for Advanced Packaging Innovations
The National Advanced Packaging Manufacturing Program (NAPMP) recently released its second Notice of Funding Opportunities (NOFO2) focusing on advanced packaging R&D areas. With a budget of $1.55B allocated across key focus areas, including Equipment, Tools, Processes, Power Delivery, and more, the program aims to drive innovation and growth in the industry.
Notable details from the NAPMP’s ETPI focus include the installation of new tools and processes in the NAPPF to assess effectiveness and commercial viability. Programs are established to enhance tool performance and packaging flow manufacturability.
For the latest updates on Advanced Packaging developments, stay connected to IFTLE for insights and news.
