Intel announced that it would spend $3 billion to expand its D1X factory in Oregon, USA, in order to speed up the technology development needed to return to the dominance of the chip industry.
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According to Intel senior vice president Sanjay Natarajan, the 14,000-employee D1X factory facility will be expanded by 270,000 square feet, increasing its size by 20 percent when completed.
Because Intel’s 10nm process is years late, companies such as TSMC and Samsung Electronics can provide better-outsourced production than Intel’s products, the report said.
Meanwhile, customers of TSMC and Samsung, such as Nvidia and AMD, have launched more competitive products and grabbed the market, squeezing Intel’s profitability and room for growth.
Intel CEO Pat Gelsinger wants to turn the tide, and the D1X factory is leading his plan. Migrating from a production node to a more advanced node typically takes anywhere from 18 months to two years.
Moreover, Intel’s goal is to move five nodes in a row over a four-year period to catch up and surpass its Asian rivals.
