Intel announced the 11th Generation Intel Core processors and the Intel Atom P5900, a system-on-chip designed for wireless base stations; both utilize its 10 nm chips. While their products using the 10 nm chip have been expanding, it needed to increase manufacturing these chips. To do so, Intel has doubled its manufacturing capacity in the last three years. However, even with its doubled capacity, the company still exists in a surplus demand environment courtesy of the overarching semiconductor industry constraints.
Intel doubled its manufacturing capacity but still exists in a demand surplus environment
Intel's products that utilize its 10 nm chips have been increasing, including the 11th generation Intel Core processor and the Intel Atom P5900. These products further increased the demand for its 10 nm chips, which had trouble keeping up with production. It sought to overcome this issue by repurposing existing labs and even office space for manufacturing. It also announced the 10nm SuperFin technology, which enables the largest intranode enhancement and even delivers improvements that make it comparable to a full-node transition.
Keyvan Esfarjani, senior vice president and general manager of Manufacturing and Operations at Intel, stated, “Over the last three years, we have doubled our wafer volume capacity, and that was a significant investment. Moving forward, we’re not stopping… We are continuing to invest in factory capacity to ensure we can keep up with the growing needs of our customers.”
Intel currently has manufacturing plants in both the United States and Israel that focus heavily on creating Intel's 10 nm products. In the United States, it's manufacturing plants in Arizona and Oregon focus heavily on creating these 10 nm products and have increased their production capacity to accommodate these new products.
Esfarjani also went on to explain: “10nm progress is coming along quite well. We have three high-volume manufacturing operations that are going full steam ahead to see how we can do more, better and faster, and continue to support our customers.”
Intel released a video showcasing its expanded manufacturing capacity and the measures the manufacturing plants took to gain this significant increase in manufacturing capacity. In this video, these measures, which included repurposing various spaces into locations for manufacturing, were all undertaken before the current pandemic.
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