Intel invests $20 billion into new factories, will produce chips for other companies

Intel has a new CEO, Pat Gelsinger, and he’s not wasting any time to make some big changes. At the company’s “Engineering the Future” announcement today, Gelsinger announced plans to outsource more of Intel’s chip production to third-party foundries; a $20 billion investment into two new fabs in Arizona; and a new branch of the company called Intel Foundry Services, which will see Intel’s foundries produce chips for other companies.

The announcements are part of a new “IDM 2.0” strategy for Intel’s design and manufacturing, which is made up of three parts. First, there’s Intel’s in-house manufacturing, which will continue to serve as a key part of Intel’s design and production of chips. Second, there’s an expanded use of external...

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