Intel Aims to Expand its Top Chip FAB and Seeks Partners with a $2 Billion Investment Goal

Intel Aims to Expand its Top Chip FAB and Seeks Partners with a $2 Billion Investment Goal

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Intel quiere expandir su mejor FAB de chips y busca socios con un objetivo de inversión de 2.000 millones

In a time when the sector is slowing down for various reasons, and chip demand does not seem to be as high as predicted, Intel comes in and dynamites everything again. Despite partial pessimism in semiconductors, Intel is seeking partners to expand its FAB 34, the most advanced currently operating in the world and located in Ireland, where it hopes to raise $2 billion.

The $11 billion for the German FAB will not be needed in this case, as FAB 34 is running at full capacity and launching chips left and right on Intel’s most advanced lithographic node, Intel 4. It is functioning so well that expansion is necessary, especially when its new Ohio FAB is facing delays for various reasons.

Intel is looking for $2 billion from investors to expand its FAB 34 in Ireland

Information from the United States reveals that Intel is seeking investors to avoid having to spend a huge amount of money, following its expenses in 2023, which will end in 2024. The initiative is driven by Intel, but it is also true that the Dublin government is pushing manufacturers to make more investments and strengthen their presence within their borders, hand in hand with the EU Chips Act.

Interestingly, Intel previously promised to spend around $12 billion to “expand its operations” in Kildare, a town 60 km south of Dublin. This left open the possibility of a second FAB in Ireland, which would be the third on European soil, but nothing has been mentioned since then, and Intel does not want to comment.

Is this money the “expansion of operations on Irish soil”?

Given that there has been no statement on the matter for two years and Intel does not seem interested in spending more money in a complicated moment, the reality is that these $2 billion to expand FAB 34 could be the answer to that promise.

In any case, the company has already brought in several advisors to launch an investment search since not all companies will be able to enter the business of the semiconductor giant even if they have the money. The idea, apparently, is to partner with other semiconductor companies so that Intel’s participation in these $2 billion is minimal, while the benefit for these investors is not only in shares but additional production or product advantages.

This could be from the purchase of materials, raw materials, equipment, or simply large-scale logistics. Once the expansion of FAB 34 is completed, rumors suggest that the necessary technology will be adopted to mass-produce Intel 3, Intel 20A, and Intel 18A nodes, just as it is happening now with Intel 4 for Meteor Lake.

This would make sense within IFS’s strategy, which is very focused on diversification, and given that Europe is demanding more cutting-edge chips for laptops, PCs, and various servers, it could be a great move alongside that of Israel.

The news Intel wants to expand its best chip FAB and seeks partners with an investment goal of $2 billion first appeared on El Chapuzas Informático.

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