Intel's Advance: Declares Entry into Automotive Semiconductor Foundry Sector

Launch of Dedicated Team... Strategy to Expand Ecosystem by Strengthening Collaboration with Manufacturers

Pat Gelsinger Intel Chief Executive Officer (CEO)

[Asia Economy Reporter Lee Hye-young] Intel has officially announced its entry into the automotive semiconductor foundry business. Having completed the formation of an internal team dedicated to this, Intel is expected to accelerate efforts to catch up with TSMC and Samsung Electronics in the foundry sector.

On the 17th (local time), Intel held 'Investor Day 2022' and officially announced its entry into the automotive semiconductor foundry business.

In the business strategy materials released that day, Intel stated, "The total market size for automotive semiconductors is expected to double in 10 years to $115 billion (137 trillion KRW)," adding, "To respond to increasingly advanced automotive semiconductor solutions, we are launching a dedicated automotive organization."

Intel currently estimates that processors account for about 4% of automotive production costs, but this is expected to surge to 20% by 2030.

Intel clearly expressed its intention to fully support automakers in implementing next-generation chip technologies to grow the automotive semiconductor ecosystem. To this end, it emphasized plans to advance and strengthen support not only for the foundry platform but also for semiconductor packaging and advanced design technologies.

Last year, Intel announced its re-entry into the foundry market and signaled large-scale investments; however, this is the first time it has specifically mentioned automotive semiconductors as a business area. This indicates Intel’s high expectations for the growth potential of the automotive semiconductor market.

In particular, the prolonged shortage of automotive semiconductors has led global car brands to actively pursue collaborations with the semiconductor industry, including foundries, which appears to have significantly influenced Intel’s recent decision. Last year, CEO Pat Gelsinger declared plans to invest over 100 trillion KRW in Europe to build semiconductor fabs, hinting at potential collaborations with European automakers and electric vehicle brands.

Intel’s recent acquisition of Israeli foundry Tower Semiconductor for $5.4 billion (approximately 6.5 trillion KRW) is also interpreted as part of its strategy to enter the automotive semiconductor foundry market. Since Tower has strengths in producing automotive communication (RF) and sensors, synergy is expected to grow.

Meanwhile, Intel also revealed its intention to acquire the UK semiconductor company ARM. According to Reuters and others, CEO Pat Gelsinger mentioned that discussions about forming a consortium had been underway even before Nvidia’s attempt to acquire ARM from SoftBank, stating, "ARM could be included in Intel’s foundry business. If a new consortium is formed, it would be advantageous to participate."

This content was produced with the assistance of AI translation services.