Intel Foundry is partnering with UMC, a Taiwanese semiconductor fabrication company, to produce a 12nm chip for use in everything from high-speed transmission needed in high-performance computing to ubiquitous Wi-Fi transmitters.
The chip will be manufactured in Chandler, Arizona, at an existing facility, but relies on base technology from UMC, officials from the two companies told reporters and analysts in a briefing at Intel headquarters on Wednesday.
While the partnership and the chip might not seem terribly important on its own, the announcement ticks off several important themes for Intel and newly-installed CEO Lip-Bu Tan, as he pushes for a stronger customer-focused Intel to turn the company's fortunes around. Also, the partnership brings, somewhat indirectly, Asian chip manufacturing to the US, a key focus of the Trump administration.
“I can’t speak for what it means to Trump, but this partnership provides a solution for the what the end customer wants,” said Walter Ng , vice president of worldwide business development for Intel Foundry. However, he conceded: “It’s a balancing out of geographical distribution of [chip] capacity. Intel resources have gone to Taiwan and UMC resources have come here. It’s truly a joint development.”
Analyst Jim McGregor of Tirias Research called the partnership “a drastic business model change for Intel…It’s huge.” It is also a reminder of a somewhat similar partnership between Tower and Intel, he said.
Ng was joined in speaking to reporters by UMC USA President TJ Lin. Both men said the deal over the 12nm FinFET product could lead to future business together, raising the possibility that other Intel fabs tooled for different legacy nodes could be used by UMC and other customers.
Legacy nodes make up the vast majority of chips in use for all types of electronics, often running side by side with advanced chips like the GPUs produced by Nvidia.
With such a partnership with UMC, Intel will be able to leverage use of older fab facilities for the 12nm node or other nodes potentially again and again for UMC or other customers, rather than having to tear out expensive equipment to be replaced to meet a different customer’s needs. “We’re focusing on 12nm now but there might be more later,” Ng said. “This is a long-term collaboration.” Other nodes could include 22 and 32, or others, McGregor said.
Work on the partnership started in early 2024 and mass production of 12nm nodes is set for January 2027.
Ng described partnerships with UMC and others as central to the mission of Intel Foundry. “The industry can’t live without the ecosystem. Customers won’t put up for it. A one-trick pony is not what customers want to see.”