In 2021, Intel CEO Pat Gelsinger announced a comprehensive modernization strategy he dubbed IDM (integrated device manufacturing) 2.0. As part of that vision, the company announced a $20 billion investment to build two new Fabs (chip manufacturing facilities) in Arizona along with plans to increase capacity in other parts of the U.S. and Europe.
In a 2022 article, we described Intel’s new approach this way: IDM 2.0 involves a three-pronged approach to semiconductor manufacturing: Intel’s network of global factories, use of third-party capacity and building out Intel Foundry Services, moving the company beyond simply producing Intel-branded chips, but helping meet the growing needs for custom chips.
As part of that shift, Intel announced plans to acquire Tower Semiconductor, an Israeli chip manufacturer, for $5.4 billion in February 2022. That deal was killed yesterday when Intel announced it was walking away due to regulatory issues getting the d …
