Intel announces ‘IDM 2.0’ strategy for manufacturing
During Intel’s ‘Intel Unleashed: Engineering the Future’ webcast, Pat Gelsinger, CEO at Intel outlined the company’s ‘IDM 2.0’ strategy for manufacturing, innovation and product leadership to create long term value for its stakeholders.
As part of his announcement, Gelsinger detailed Intel’s significant manufacturing expansion plans, investing US$20bn in two new Arizona factories, as well as its ambitions to become a major provider of foundry capacity in the US and Europe.
“We are setting a course for a new era of innovation and product leadership at Intel. Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in,” said Pat Gelsinger, CEO at Intel.
IDM 2.0 a new era of innovation and product leadership
Enabling Intel to drive sustained technology and product leadership, the IDM 2.0 strategy combines three components:
Intel’s global, internal factory network
A key competitive advantage for Intel, its global internal factory network for at-scale manufacturing enables product optimisation, improves economics and drives supply resilience. At the webinar, Gelsinger reaffirmed its expectations to continue manufacturing a majority of its products internally.
Expanding the use of third-party foundry capacity
Building on its existing relationships with third party foundries, Gelsinger expects its engagement to grow and include manufacturing for a range of modular tiles on advanced process technologies.
In doing so, Intel expects to benefit from increased flexibility and scale to optimise its roadmaps for cost, performance, schedule and supply for a unique competitive advantage.
Developing a world-class foundry business
Intel plans to become a major provider of US and Europe based foundry capacity serving the global demand for semiconductor manufacturing.
In order to achieve this, Intel will establish a standalone business unit - Intel Foundry Services (IFS) - led by Dr. Randhir Thakur, offering leading-edge process technology and packaging, as well as a world-class IP portfolio for customers.
To accelerate its strategy, Intel will further its collaborative relationship with IBM to create next generation logic and packaging technologies.
Timeline: Tesla's Construction of Gigafactories
Tesla's mission to accelerate the world's transition to sustainable energy
Founded in 2003, Tesla was established by a group of engineers with a drive to "prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker and more fun to drive than gasoline cars." Almost 20 years on, Tesla today is not only manufacturing all electric vehicles, but scaleable clean energy generation and storage too.
"Tesla believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better," says Tesla. "Electric cars, batteries, and renewable energy generation and storage already exist independently, but when combined, they become even more powerful – that’s the future we want. "
In order to deliver on its promise of "accelerate the world’s transition to sustainable energy through increasingly affordable electric vehicles and energy products," Tesla's Gigafactory journey began in 2014 to meet its produciton goals of 500,000 cars per year (a figure which would require the entire worlds supply of lithium-ion batteries at the time).
By ramping up its production and bringing it in-house, the cost of Tesla 's battery cells declined "through economies of scale, innovative manufacturing, reduction of waste, and the simple optimisation of locating most manufacturing processes under one roof." With this reduction in battery cost, "Tesla can make products available to more and more people, allowing us to make the biggest possible impact on transitioning the world to sustainable energy."
2014: Giga Nevada and Giga New York begin construction
Born out of necessity to meet its own supply demand for sustainable energy, Tesla began the construction of its first Gigafactory in June 2014, in Reno, Nevada, followed by its Buffalo, New York facility the same year. "By bringing cell production in-house, Tesla manufactures batteries at the volumes required to meet production goals, while creating thousands of jobs," said Tesla.
2016: Reno, Nevada grand opening
Tesla’s construction of Giga Nevada came to an end in 2016, the first of its Gigafactories to complete its construction project. The factory’s grand opening took place in July 2016, and by mid-2018 reached an annual battery production rate of 20 GWh, which made it the highest-volume battery plant in the world that year.
2017: Giga New York begins production
Two years after Tesla’s second Gigafactory began construction, Giga New York was complete, and started its production operations in 2017.
2019: Giga Shanghai construction to production in record time
In 2019, Tesla selected Shanghai as its third Gigafactory location. The company constructed the factory in record time, taking just 168 working days from gaining permits to finishing the plant's construction.
2019: Giga Berlin begins construction
Announced in November 2019, Tesla began the construction of its first European Gigafactory in Berlin. The Gigafactory is still under construction.
2020: Giga Texas begins construction
The following year in August 2020, Tesla began the construction of its Giga Texas factory. The company’s third Gigafactory in the US is still under construction.
2021: Giga Texas and Giga Berlin expected completion of construction
Looking to the future, Tesla expects to complete the construction of its Giga Texas and Giga Berlin factories in May 2021 and July 2021 respectively.