Photo: Intel Newsroom
Intel resurrects chip factory in Arizona and plans to build an advanced semiconductor facility that can create next-gen chips for 5G devices, IoT sensors and drones.
During a recent earnings call and meetings in Washington, D.C., Intel reaffirmed its intention to focus on the lucrative data center and IoT markets in the coming year. In February, the company announced a $7 billion investment in a next-generation chip factory called Fab 42. Based in Chandler, AZ, the facility is described in the Washington Post as “the most advanced semiconductor facility in the world.”
The high-volume factory is targeted to use the 7 nanometer (nm) manufacturing process, according to an Intel statement. It will produce microprocessors to power data centers and hundreds of millions of smart IoT and connected devices worldwide, including 5G network devices, drones and sensors. Intel will provide 3,000 high-skill manufacturing jobs at the plant.
The announcement of the revitalized plant reinforces what Intel CEO Brian Krzanich explained during a recent earnings call. He noted that almost a year after announcing a massive restructuring, the company continues to transform "from a PC-centric company to a smart, connected company that powers the cloud."
Krzanich noted in an article in CRN that "in 2016, we took important and sometimes difficult steps to position our company for future success and accelerate our company to power the cloud and billions of connected devices." He added that new areas such as the data center are poised for growth, because industries are flooded by data.
The Intel Internet of Things Group also reported growth, increasing 16 percent year-over-year to $726 million. Meanwhile, the company's Client Computing Group, which brings in the most revenue at $9.1 billion, was up in the fourth quarter 4 percent year-over-year, according to CRN.
Double Down on IoT
Krzanich said that Intel this year plans to continue to double down on data center, IoT and autonomous driving. "These segments are all focused on data, they're all expanding our TAM [Total Available Market]."
Photo: Intel Newsroom
In an interview with CRN, Martin Smekal, president and CEO of Torrance, CA-based Intel partner TabletKiosk, applauded Intel's momentum and focus on IoT. "I see a bright future for IoT and virtualization for Intel," he said. "I'm seeing a very strong interest from partners in IoT, but confusion about how to play into it. Channel partners are excited about the part they can play in IoT. There's so many areas where they can specialize in."
Learn more about Intel Fab 42.