Intel's Radical Post-Global National Mesh Strategy
G. Dan Hutcheson
The Chip Insider®
Strategy and Tactics: Intel's radical Post-Global National Mesh strategy
Intel's radically new Post-Global manufacturing strategy: By now I'm sure everyone has heard about Intel's new manufacturing "epicenter" in the EU. There is a lot of hidden meaning in Intel's particular choice of that word: The seismic definition of an epicenter is the surface point above the underground hypocenter of an energy release that creates an earthquake. So in futuristic terms, Intel's definition might mean the hypocenter is located at TMG in Oregon, where they expect an earthquake to come from reaching technology parity in 2025. In present terms, Intel's use of the term could point to the hypocenter being located in Taiwan, where the earthquake came from the 2021 chip shortage that crippled the global industrial economy with major political fallout around the world. The aftershock of that quake led to a quest for technology sovereignty in many regions and ultimately to Intel's groundbreaking - literally and figuratively - deals in Ohio and the EU.
What Intel did with the EC is far bigger than the 'just another fab' reception the media appeared to give to it. My sense is that in the future, this reception may be seen as indicatory of the media's vision to the appearance of the Transistor on page 46 of the 1 July 1948 section called "News of the Radio." Or possibly, Gordon's 'Moore's Law' paper in 1965 on page 114 of Electronics magazine. One proof of how hard it is to comprehend visionaries in the present is that Moore's Law still exists while Electronics magazine does not. I may be wrong, but I believe what Pat Gelsinger unleashed on 15 March will be remembered as far more than 'just another fab...'
What one can see when this is mapped out is that chip making strategy has evolved dramatically to deal with the transition from worldwide market availability that was apolitically globalized to major pockets of political nationalization. This requires a major revamp of go-to market strategy. Intel National Mesh strategy has clearly put it in the lead as exemplified by its getting the sitting presidents of the European Commission and the United States involved in its press conferences this year. That's never happened before and it's not like they didn't have anything else to do.
For Your Reference: Semiconductor Sales on Track to Reach $0.7T in '22.