Question The begining of the end of Intel fabs?

jpiniero

Lifer
Oct 1, 2010
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Intel has signed a deal with a hedge fund to finance a $30B fab in Arizona. The hedge fund is kicking in $15B for a 49% stake in this separate entity that will own the fab. Intel will own 51%. IOW this isn't an Intel fab, this is a separate company that Intel owns 51% of. Basically it reeks of the start of them getting out of owning the fabs.

Guess the Free Money from the US wasn't enough for ol Pat.
 

Doug S

Golden Member
Feb 8, 2020
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Intel has signed a deal with a hedge fund to finance a $30B fab in Arizona. The hedge fund is kicking in $15B for a 49% stake in this separate entity that will own the fab. Intel will own 51%. IOW this isn't an Intel fab, this is a separate company that Intel owns 51% of. Basically it reeks of the start of them getting out of owning the fabs.

Guess the Free Money from the US wasn't enough for ol Pat.

Or maybe there is a limit in the CHIPS Act for how much money one company can get, so by building a fab that isn't an "Intel" fab they are able to get more.

Or perhaps Intel isn't making enough money to be able to take all the deprecation their new fabs will offer so they are partnering with someone who needs tax writeoffs i.e. a hedge fund.

Lots of possible explanations for this besides Intel getting out of the fab business.
 

DrMrLordX

Lifer
Apr 27, 2000
20,263
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Guess the Free Money from the US wasn't enough for ol Pat.
Either that, or it was enough to finally convince Brookfield to put down their own money. In any case it's getting too expensive for Intel to continue the cutting-edge fab game, so . . .
 

maddie

Diamond Member
Jul 18, 2010
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How many more years baring a technological shift, before we have the world fab for advanced nodes, or at least a western one and eastern one?

Look at ASML.
 

moinmoin

Diamond Member
Jun 1, 2017
4,040
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How many more years baring a technological shift, before we have the world fab for advanced nodes, or at least a western one and eastern one?

Look at ASML.
Shared ownership indeed seems to be the way to go. However hedge funds are unlikely to be a part of it. GloFo could still have been on leading edge nodes if its owner had any interest in it, it didn't. So like with ASML the financing needs to come from companies having vested interest in the technological progress.

The hard part is, TSMC is pretty much already doing that without requiring ownership or additional financing on top. Everything is priced in in their services already.
 
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maddie

Diamond Member
Jul 18, 2010
4,333
3,866
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Shared ownership indeed seems to be the way to go. However hedge funds are unlikely to be a part of it. GloFo could still have been on leading edge nodes if its owner had any interest in it, it didn't. So like with ASML the financing needs to come from companies having vested interest in the technological progress.

The hard part is, TSMC is pretty much already doing that without requiring ownership or additional financing on top. Everything is priced in in their services already.
Yep, at present TSMC appears to be heading for sole supremacy. Still not locked in however. A few more years to be sure.
 

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