Intel to make chips in US for Taiwan’s UMC

Original Introduction to the topic

Intel’s recent agreement to manufacture chips for Taiwan’s UMC at its fabs in Arizona has far-reaching implications. This partnership marks a strategic alignment with the US CHIPS Act, which aims to increase chip manufacturing capacity on US soil, and signifies a significant shift in the semiconductor industry. With production expected to begin in 2027, this collaboration will give customers access to a geographically diverse semiconductor supply chain.

Key takeaways
– The collaboration between Intel and UMC will lead to the development of a new manufacturing technology targeting networking, mobile, and communication infrastructure applications.
– Enterprises have experienced the consequences of an over-concentrated semiconductor supply chain during the COVID-19 lockdowns, leading to shortages of electronic devices.
– Intel’s Integrated Device Manufacturing (IDM) 2.0 plan represents a strategic shift from its traditional role to entering the foundry business, reflecting the trend of capital-efficient chip design versus manufacturing.


The agreement between Intel and UMC has the potential to reshape the semiconductor industry. The reduced costs and increased competition could lead to a positive impact, although there is still much to be seen on how this partnership will impact prices. The US CHIPS Act aims to encourage semiconductor companies to set up manufacturing capabilities in the US, and Intel’s partnership with UMC represents a significant move in advancing capacity on mature process nodes.

Frequently asked questions

Q: How will the collaboration between Intel and UMC impact semiconductor prices?
A: While the exact impact on prices remains to be seen, many analysts are confident that the market will benefit from increased competition.

Q: What is Intel’s IDM 2.0 plan?
A: Intel’s Integrated Device Manufacturing (IDM) 2.0 plan is a strategic shift from solely designing and manufacturing its own devices to entering the foundry business, becoming an agnostic manufacturer.

Q: What are the geopolitical implications of this collaboration?
A: The partnership reflects the US government’s efforts to increase semiconductor capacity onshore and Taiwan’s push to de-couple from China, leading to a more diversified and geographically spread semiconductor supply chain.

In conclusion, the collaboration between Intel and UMC represents a significant shift in the semiconductor industry and reflects the broader geopolitical dynamics at play. The impact of this partnership remains to be seen, but it has the potential to reshape the industry and benefit consumers and businesses alike.


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