Shulou(Shulou.com)11/24 Report--

CTOnews.com June 22 news, Intel announced today to restructure the enterprise structure, responsible for wafer foundry IFS department to operate independently. According to Timothy Arcuri, an analyst at UBS, Intel's next step is to completely spin off its foundry business to avoid concerns about competing with customers.

▲ Touyuan: Intel Arcuri said that Intel's independent operation of the foundry business was modelled on TSMC's business strategy of "not competing with customers", but the market reacted coolly to Intel's practice of operating the foundry business independently. Intel shares tumbled 6 per cent in intraday trading today.

▲ Tupu Source: Intel, according to Intel, TSMC President Wei Zhijia said publicly at the technical forum that the key to TSMC's success lies in the trust of its customers. "TSMC can develop only if customers succeed first." This is what competitors cannot do. TSMC does not have its own products and will not compete with customers.

▲ source: Intel Arcuri says he has always believed that Intel should pursue external wafer foundry models. Considering Intel's desire to develop wafer foundry business, increasing investment in advanced process research and development, and restrictions on semiconductor subsidies from the US Department of Commerce, it is almost a foregone conclusion for Intel to give up internal manufacturing to external foundry. Intel's next step is to thoroughly split the IFS department responsible for wafer manufacturing.

▲ source: Intel Arcuri pointed out that Intel should be split according to the mode of wafer foundry business and fab-free product business. The most important first step is to separate the financial statements of the two major businesses. Because Intel found in the survey that all potential major customers of the contract manufacturing business said that if they needed to compete with Intel for its own contract manufacturing resources, they would not choose Intel's contract manufacturing services. Arcuri predicts that Intel's next step may be to completely spin off its foundry business to avoid concerns about competing with customers.

▲ source: GlobalfoundriesCTOnews.com noted that Intel CEO Kissinger hopes to overtake Samsung as the world's second largest foundry in 2023. In addition, Kissinger also said that appropriate firewalls will be set up to distinguish customer information and protect customer sensitive design data.

▲ source: Globalfoundries according to reports, Intel's biggest competitor AMD sold its manufacturing business Globalfoundries to the Mubadala Fund of the United Arab Emirates in 2008 and transformed into a fabless semiconductor enterprise. Globalfoundries is now the third largest foundry in the world, after TSMC and Samsung, but if Samsung is excluded as part of its own chip foundry, GlobalFoundries ranks second.

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