Intel announces the establishment of a cutting-edge facility in Poland.

Intel, a leading IDM in the semiconductor industry and the largest global supplier of microprocessors, has recently announced the establishment of a cutting-edge facility in Poland. This facility, focused on testing and assembly, is a strategic move in Intel’s broader plan to establish a robust value chain within Europe. By investing in this new facility, Intel aims to solidify its position in the field of advanced packaging, where it already holds a commendable third place among industry leaders, boasting an impressive revenue of $5.5 billion in 2022 and it is already one of the big players investing massively into the advanced packaging.

The crucial role of advanced packaging cannot be understated in today’s semiconductor manufacturing landscape. Emerging and growing markets such as artificial intelligence (AI) and high-performance computing (HPC) are flourishing (sources: High-end Performance Packaging 2023 and Processor Market Monitor Q2 2023), spurred by, and creating demand for, ever-increasing performance of computing hardware.  These performance gains used to mainly come from transistor scaling, but as that is proving more costly at today’s nodes, innovations in packaging become the latest path to extend Moore’s Law. Intel recognizes the role of advanced packaging in enabling these groundbreaking technologies. Consequently, Intel has made substantial investments in this area to ensure their continued success.

Intel also carries ambitions outside of its traditional IDM role and has invested significantly in establishing its foundry services division. The kinds of advanced packaging technologies that will enable Intel’s next-generation CPUs will also be attractive to prospective foundry customers. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s biggest foundry has recognized the advantage of pairing leading-edge wafer fabrication with advanced packaging, to propose the complete solution to its customers.  Intel would no doubt like to do the same.

The newly established facility will probably focus on its latest 2.5D/3D packaging platforms such as Foveros and Co-EMIB, which are crucial components for AI and HPC applications. By unveiling this facility, Intel aims to expand its services within the IDM 2.0 business model, gain a competitive advantage over key rivals such as TSMC and Samsung, and support meeting the high demand expected by 2027.

The initiative in Poland joins Intel’s other manufacturing projects in the EU: expansion of the facility in Leixlip, Ireland and a new front-end facility in Magdeburg, Germany. These are part of a broader investment plan intended to take advantage of a portion of the EU Chips Act, which has committed €43 billion of incentives for investments in the European semiconductor industry.

Ultimately, Intel’s steadfast commitment to advanced packaging underscores its unwavering dedication to technological advancement and innovation. This state-of-the-art facility in Europe serves as a testament to Intel’s enduring pursuit of excellence in the semiconductor industry.

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