Intel Reaches The Fork in the Road
Digitimes had some interesting recent opinions about the future of Intel. Let’s take a look.
With Intel struggling to make its foundry business profitable, Digitimes questions whether Intel should consider abandoning its IDM model and separate its product design and manufacturing divisions. The issue is that if Intel’s two businesses remain intertwined, it may be challenging for the foundry business to gain the trust of potential clients, who are often competitors with Intel’s product design business.
In mid-September, Intel announced plans to spin off its foundry business into an independent subsidiary, similar to when AMD transitioned to a pure chip design company in 2008 by divesting its manufacturing business. AMD’s manufacturing division later became GlobalFoundries (GF); now one of the top five foundries globally.
However, if Intel decides to spin off its foundry operations and hand them over to another company, it could lead to issues with its agreements under the U.S. CHIPS Act, where Intel is one of the biggest on shore beneficiaries. If the foundry splits off, we can expect rigorous scrutiny by the government regarding how effectively these funds would then be utilized.
Reportedly, Industry leaders, including former board members, are offering conflicting advice. A recent article in Fortune Magazine by former Intel board members asserts that operating the foundry business under the current corporate structure leaves little possibility for success. However, former Intel CEO and chairman Craig Barrett believes that rather than wasting energy on a split, Intel should focus on reclaiming its dominant position in wafer manufacturing to attract orders from design houses. If Intel can regain its manufacturing technology lead, even competitors of Intel’s chip design business would recognize that not using Intel’s foundry services would place them at a disadvantage.
With Intel already entrenched in losses, it is unlikely that the company possesses ample funds to sustain both design and manufacturing efforts. Therefore, if Intel intends to stick with the IDM approach, it will need to seek a strong partner. Digitimes reports that Intel has approached Samsung Electronics to explore the possibility of forming a “foundry alliance.” Intel’s willingness to seek collaboration indicates that even Intel has recognized that the current situation cannot be continued.
NAPMP Proposers Day
The National Advanced Packaging Manufacturing Program (NAPMP) released its second Notice of Funding Opportunities (NOFO2) on October 17, 2024 focused on the five (5) remaining R&D areas for advanced packaging, with the intent to fund $1.55B in not less than $10M and not more than $150M award increments across the five focus areas, with the budget roughly as shown below. The concept papers are due December 20, 2024.
- Equipment, Tools, Processes – $450MM – PM: Robert J. Soave
- Power Delivery and Thermal Management – $250MM –
- Connector Technology, including Photonics and RF – $250MM
- Chiplets Ecosystem – $300MM
- Co-Designed EDA – $250MM
The entire days program is recorded here
Let’s take a look at some of the equipment, tools, processes, and process integration (ETPI) details:
In 3-5 years new tools, processes, and integrated flows will be installed in the NAPPF to assess efficacy and extendibility, and to gather insights into suitability for commercial adoption. Tools and processes are incorporated in NAPPF prototyping flows. Programs are established to improve tool and process performance and packaging flow manufacturability.
More detail on the process clusters is given below in the four figures below.
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