Regarding the IDM 2.0 development policy proposed last year, which includes a wafer foundry business development plan, Intel earlier announced that it will use a new wafer foundry model to achieve the established cost savings target of US$2025 billion to US$80 billion by 100.
Under the new model transformation, the relationship between internal product departments and manufacturing departments will shift to a model similar to that between fabless semiconductor design companies and external wafer foundries, thereby improving profitability and achieving Intel's long-term profit goals.
Intel emphasized that it will regain its leading position in process technology through its IDM 2.0 development policy, expand external wafer foundry resources to increase production capacity, and also strive to establish a world-class wafer foundry business based on its own process technology.
Under the new operating model, Intel's manufacturing division will report to its own independent profit and loss statement for the first time. Starting in the first quarter of 2024, the newly reported profit and loss statement will include revenue information for the new Manufacturing division, consisting of manufacturing, technology development, and Intel Foundry Services, as well as for the Product division, consisting of client computing, data center and AI, network and edge computing, and other businesses.
The internal foundry model will significantly enhance its inherent business value by saving billions of dollars in costs. Intel will extend its market-driven pricing approach to its internal business units, providing the same stable process technology as Intel's external customers. Furthermore, Intel will establish the industry's second-largest foundry, enabling external customers to develop products using Intel's process technology while mitigating production risks.
In addition to manufacturing products using its own process technology, Intel will also maintain flexibility in collaborating with third-party foundries to ensure the speed of product updates and development. According to Intel, approximately 20% of its chip products are currently produced by external foundries.
Prior to this, Intel originally planned to become the second largest external wafer foundry by 2030, but now, driven by the new development model, Intel expects to achieve the goal of becoming the second largest external wafer foundry as early as 2024, and will generate manufacturing revenue of more than US$200 billion.
