Intel this week reiterated plans to expand its production capacities in a bid to more quickly respond to increased demand. In the coming years the company intends to increase production of chips at three existing facilities and outfit a new fab with DUV and EUV tools. In addition, the company said it will develop its next-gen storage and memory technology at its manufacturing plant in New Mexico.

Back in 2017, Intel originally announced its intentions to finally furnish its Fab 42 in Arizona, which had been on hold for several years. The production facility will be used to make chips using Intel’s 7 nm manufacturing technology, which relies on DUV and EUV lithography tools. Intel has yet to announce exactly when it plans to start using this fabrication technology, but this week it said that it was making good progress in equipping the fab.

In addition, Intel intends to expand its manufacturing facilities in Oregon, Ireland, and Israel. The company has been discussing expansions of its fabs in Ireland as well as Israel for quite some time now, so it looks like the company will finally start these expansions in 2019. Meanwhile, the adding fab space to its Oregon plant – home to the company's development fabs – was unexpected and the company yet has to detail these plans.

Intel expects that the expansion of its production facilities will enable it to more quickly respond to demand increases. This faster response time will translate into higher sales, but will also increase Intel’s factory depreciation and OpEx costs.

In addition to expanding its own manufacturing capacities, Intel will also continue using third-party foundry services to make its various products when it makes business sense, including (but not limited to) entry-level SoCs or chipsets. The company collaborated with TSMC and other partners in the past, so the announcement just confirms that the company will continue to do so in the future even after it expands its own capacities, if third-party foundries offer the right technologies for particular applications.

Last but not least, Intel also made an announcement regarding the future of its storage and memory technology, which is being moved exclusively inside Intel after the company announced its intention to wind-down its long-standing joint development initiative with Micron. The chip giant will develop the tech at its manufacturing facility in New Mexico after it leaves IMFT plant in the coming quarters.

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Source: Intel

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  • Shiitaki - Friday, December 28, 2018 - link

    Intel is making the classic 'always must grow' mistake. Optane is dead, it's years late and horribly overpriced. No body cares. CPUs? AMD isn't a joke anymore, processors are slamming in to a wall to break 5Ghz, and we already have more cores than 90 percent of the population could use.

    The modern desktop CPU has reached 'maturity', and it will become a commodity over the next 5 years, people simply won't care if it is blue or red inside.

    We are currently headed for a world wide recession and a very uncertain future politically.
  • ironargonaut - Friday, December 28, 2018 - link

    <sarcasm>You forgot that nobody needs more than 64k memory.<sarcasm> If no body cares, why are you bothering to post? "Optane is dead", that must be why all the datacenters are buying them.
    "We are currently headed for a world wide recession and a very uncertain future politically."
    Just another democrat trying to talk the US into another recession because a republican is president of the USA. Not that I blame you/them it worked the first time, and you/them don't care whom you hurt.
  • NewNumber6 - Friday, December 28, 2018 - link

    You spelled your handle wrong. It’s spelled i-g-n-o-r-a-n-t.
  • TheJian - Tuesday, January 1, 2019 - link

    He's spot on. NO recession, and dems/news have been saying we're headed for Armageddon for 2yrs...LOL. The world is ending due to trump, trump will start nuclear war, blah blah...NOPE, he's ending wars...LOL. Economy, unemployment etc great. He just needs to kill the Central Bank and Fed and we'll be just fine. Since 1913, the dollar has lost 94% of it's value. Hmm, what was created in 1913...ROFL. The Federal Reserve! Illegal BTW! The founding fathers NEVER wanted this nor the fbi, cia, doj, fisa etc etc etc, all illegal/unconstitutional. These people (the deep state I guess) are far more dangerous than trump (or any president). The damage they can do to anyone they don't like is unbelievable. IE, Flynn was worth 5mil and had a house before they attacked him for a lie both federal interviewers said he didn't even make. Govt shouldn't have the power to do this to citizens, and they did it because he knows everything they did during obama/clinton (pres/state dpt) admin.
    There's a reason Jefferson saw it as "an engine for speculation, financial manipulation, and corruption." He was 100% correct, and they're currently trying to take down trumps economy (7 rate hikes in less than 2yrs? For what? Ah, to kill the stock market - and they hope trump 2020). Trump got the market too high, jobs up etc etc, time to take him down...Ugh.

    Tax payers should not be backing debt. Govt should not be in banking either. It breeds corruption, bailouts etc. I never voted to bail ANYONE out. If you fail at business, you need to be put OUT of business and make room for someone better at it to move in. Trump hopefully is moving to bring back the gold standard (put a bill up, seems he's going to do it or leaning that way)
    YES, kill the fed trump! DO IT NOW! Seal the border until mexico begs to pay for the wall (they lose well over 71B a year if we do this now, just in balance), and do the same for china. Welcome to USA power again, along with WEALTH and JOBS. USA first. PERIOD. We owe NOBODY anything in welfare. Time to take care of our own. Stop all welfare to illegals (240bil a year now that we know there are 22-30mil here, that is 10% of the population almost), and you get 10 FREE walls anyway yearly...LOL The wall stops crap every year and is 99% effective (just ask Israel for crime stats, walls work).

    Just like a dem, no comment on substance, just personal attacks. Trump's going to end the world, climate change is real...blah blah blah...BS. They can't predict the weather for my trip to the beach, let alone decades out...ROFLMAO. 1% means NOTHING even if their dumb models are correct at SOME POINT down the road, and by then we'll have better tech and ideas to beat it (but it's fake, so who cares). Thank god trump isn't falling for that fleece america BS. If you can't build it for profit without a govt subsidy go fly a kite (I'm looking at you windmills, solar etc). 5B sugar subs in the crap bill last month, but no 5B for a wall? They've passed 3T in the last year, but can't find wall money? Fire everyone you can trump. They are all trying to fire you anyway...LOL. Dang deep state.

    Google Grahams Hierarchy of disagreement so you won't be so ignorant yourself.

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