Intel – IDM Model In Transition

This article was originally published on 12/6/2020 and is one of the key/foundational articles being provided for reference.

Note: This is likely to be the first article a series of articles about Intel business model transition. As Intel reveals more and more about its manufacturing plans and how and if it transitions from mostly an IDM, or Integrated Device Manufacturer, model to a more of a foundry or fabless model.

Recently, Intel (INTC) CEO Bob Swan has been giving interviews to financial outlets about Intel’s future and the unifying message seems to be that Intel will retain its IDM model. Simultaneously, in the last few weeks, there have been numerous hints that Intel is expanding the scope of operation with TSMC (TSM) and Samsung (OTCPK:SSNLF). This article interprets these tea leaves and presents Intel’s likely fab strategy.

Background

It is well known that Intel had severe problems ramping its 10nm process and is now experiencing challenges with bringing its 7nm process to produ…