Intel CEO: Will turn around the company's fortunes through massive factory expansion

Intel CEO Pat Gelsinger has realized that in order to avoid being left too far behind by competitors such as Nvidia, they must take action as soon as possible to escape the current "quagmire."

According to the Wall Street Journal, Kissinger said in an interview recently that compared to competitors such as Nvidia and AMD, Intel has repeatedly delayed the launch of new chips, disappointing potential customers. "It is not without our own reasons that we are in this quagmire. We are in leadership, There are some serious problems in terms of personnel and methods that need to be solved."

In his view, Intel's problems largely stem from its failure to transform its chip manufacturing methods. Intel is famous for designing integrated circuits and manufacturing them in its own factories. Today, chip companies tend to specialize in either integrated circuit design or manufacturing, and Intel has been unable to win much business making chips designed by other companies.

Gelsinger's plan calls for investing hundreds of billions of dollars in new factories that will make semiconductors for other companies in addition to Intel's own chips.

The size of the global chip market is expected to exceed US$1 trillion by the end of this decade (IT House Note: currently about 7.09 trillion yuan). Gelsinger said it is "imperative" to become a leading global chip contract manufacturer.

Gelsinger said he is confident Intel can fulfill his promise to achieve five chip technology advances in four years and will create "the world's most advanced processors" in the next few years. Gelsinger also said that he is very confident that Intel can become one of the two largest contract chip manufacturers in the world.

According to previous news, Intel will build a large wafer fab (or chip manufacturing plant) in the eastern German city of Magdeburg, and they also hope to receive a subsidy of 6.8 billion euros (currently about 51.816 billion yuan) from the Berlin authorities. , the largest foreign direct investment in Germany since World War II.

It has also been reported that Intel hopes to increase subsidies to at least 10 billion euros, citing rising energy and construction costs. German officials said they could increase financial support, but only if Intel expanded investment.

According to Korean media Koreaherald, Intel plans to set up a scientific research laboratory in Seoul, South Korea, to promote the research and development of DRAM chips suitable for data centers by expanding cooperation with Samsung and SK Hynix.