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EUV machines are marvels of physics and engineering, and one tool costs upwards of $120 million. A few years ago, the industry began to use extreme ultraviolet lithography (EUV) to shrink transistor sizes.
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That cost is driven by the price of the equipment that’s required to etch ever-smaller features onto chips. “There’s really only so much room at the leading edge, just because of the huge capital costs involved,” said Will Hunt, a research analyst at Georgetown University’s Center for Security and Emerging Technology. The investments required to stay at the leading edge-where the most advanced chips are made-has whittled down the number of semiconductor competitors from more than 20 in 2001 to just two today. TSMC made a similar announcement in April, pledging to invest $100 billion in the next three years alone. Samsung announced in May that it would spend $151 billion over the next decade to boost its semiconductor capacity. Intel’s $20 billion investment is only one example. “What aspect of your life is not being increasingly driven by digital transformation? If there was any question on that, COVID eliminated it.”įurther Reading TSMC bumps spending up 50% to meet increased demandBut now, as the global pandemic continues to disrupt supply chains, chipmakers have decided that the current spike in demand isn’t going away. “Semiconductors are a hot topic these days,” Gelsinger continued. He was in Arizona to announce not one but two new fabs that, when finished, will form a $20 billion bet that Intel can return to the leading edge of semiconductor manufacturing, one of the world's most profitable, challenging, and cutthroat businesses. A handful of executives and government officials applauded at the appropriate points.ĭespite the gathering dust storm, Gelsinger genuinely seemed to enjoy himself. “If this doesn’t get you excited, check your pulse,” he said with a chuckle. Behind him, two large pieces of construction equipment posed theatrically atop the ocher Arizona soil, framing an organized tangle of pipes, steel, and fencing at the company’s Ocotillo campus. “Isn’t this awesome!” Gelsinger exclaimed, gesturing over his shoulder. Last month, Intel CEO Pat Gelsinger stepped to a podium on a hazy, wind-whipped day just outside Phoenix.