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Intel Corp. is challenging foundry sector leaders Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics Co. with plans of significantly expanding its advanced chip manufacturing capacity and jumping into the foundry business by opening its plants to outside clients.
According to analysts, TSMC and Samsung will face an uphill battle against Intel in an increasingly competitive industry where government support and technological prowess are crucial to maintaining market leadership.
Hwang Cheol-seong, a Seoul National University materials science and engineering professor, observed that the US government wants to enhance the competitiveness of its chip industry through Intel.
Intel said on Tuesday that it would spend $20 billion to build two new chip factories, called fabs, in Chandler, Arizona.
Intel CEO Pat Gelsinger said the factories are set to start operating in 2024, not only to manufacture its chips but also to open them to outside customers in its foundry business.
Gelsinger noted that Intel aims to tilt the technological balance of power from Asia to the US by embracing the foundry business.
US and European leaders have raised concerns over the risk of concentrating the chipmaking capabilities in Asia.
Those worries intensified in recent months amid a global semiconductor shortage, such as those for cars.
The Intel CEO forecast the global foundry market to expand to $100 billion by 2025 as tech companies such as Facebook, Google, and Amazon join the race for in-house chip design.
