Intel collaborates with UMC, a chip manufacturing company, to repurpose outdated machinery for external chip production.

Intel announced a collaboration with UMC, a chip manufacturer from Taiwan, to develop a 12-nanometer FinFET production line at their Arizona factory. This new production line will utilize a significant number of existing machines and will focus on providing high-volume chip manufacturing services to external customers. Production is expected to commence in 2027.

UMC has been providing chip manufacturing services from their factories in Taiwan for a long time and has a competitive advantage in their Process Design Kit (PDK) development suite, which includes chip design assistance services. This has allowed them to capture markets in the automotive, industrial, display, and communication chip sectors. Currently, UMC operates 12 factories with a monthly production capacity of 880,000 wafers (equivalent to 8-inch wafers).

Intel has many aged chip production lines that are over 10 nanometers. However, they have recently invested heavily in acquiring new state-of-the-art machines to compete with TSMC. This move indicates that Intel is striving to open high-performance chip production lines in the near future. Collaborating with UMC will likely help Intel execute their plan of becoming the world’s second-largest contract manufacturer by 2030.

TLDR: Intel has partnered with UMC, a chip manufacturer from Taiwan, to develop a new 12-nanometer FinFET production line. With UMC’s expertise in chip design and Intel’s investment in new production machinery, the collaboration aims to provide high-volume chip manufacturing services and establish Intel as a major player in the global chip manufacturing industry by 2030. The new production line is expected to be operational in 2027.