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Intel is investing $ 20 billion to challenge Asia’s hegemony

expansion a company Intel has massively made chipsets as the new CEO announced plans to spend up to $ 20 billion building two factories in Arizona and opening its plants to outside customers.

The move by CEO Pat Gelsinger is aimed at restoring Intel’s reputation after manufacturing delays caused stocks to plummet last year.

The strategy poses a direct challenge to the companies that can produce the most advanced chips, namely Taiwanese semiconductor manufacturer TSMC and Samsung Electronics of Korea Ltd.

The strategy also aims to rebalance the technological power of the United States and Europe as government leaders on the two continents become concerned about the risks of concentrating the chip industry in Taiwan, given the tensions with China.

Intel said it expects revenue of $ 72 billion, compared to analyst estimates of $ 72.9 billion, and the company has made clear that it expects to spend between $ 19 billion and $ 20 billion on capital expenditures.

Gelsinger said: The outlook for 2021 reflects industry-wide shortages of some components.

Intel is one of the few remaining semiconductor companies that design and build its own chips, and competing chip designers such as Qualcomm and Apple rely on contract manufacturers.

“Intel has completely resolved its problems with its latest manufacturing technology and all systems running on chips for 2023, and it now plans to expand massively,” Gelsinger said.

This includes spending $ 20 billion on two new factories in Arizona, and Gelsinger said: Intel is then working on future sites in the United States and Europe.

Intel uses these factories to make its own chips, but it is also opening them to external customers, and new factories focus on making advanced computing chips, rather than the old or specialized technologies that some manufacturers specialize in.

The move represents a direct challenge to TSMC and Samsung, which have dominated the semiconductor manufacturing business and moved the center of gravity from the United States to Asia, where more than two-thirds of the advanced chips are now manufactured.

Intel aims To change this global balance, Amazon, Cisco, Microsoft and Qualcomm are supporting Intel’s efforts to provide chipmaking services.

Intel also announced plans for a new research collaboration with IBM focusing on computer chip technology.

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