Intel Foundry Services Wins US Government Contract To Develop Leading Edge Fabs

The world is currently experiencing a shortage of high-end semiconductors, where high-end fabricators are not even close to fulfilling the world’s demand for chips. What’s worse is that these chipmakers are concentrated in Asia, primarily within Taiwan and South Korea, leaving global powers concerned about their supply of high-end semiconductor products. 

The USA and EU are hoping to decentralise the world’s supply of high-end semiconductors by promoting growth within their own semiconductor industries. Both want more semiconductor production within their borders, both for commercial and security benefits. 

The US Department of Defence (DoD) has drafted Intel Foundry Services, alongside a consortium of partners such as IBM, Cadence, and Synopsys, to provide semiconductor fabrication services under their Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program. Through this, the DoD wants Intel and its partners to create a semiconductor IP and manufacturing ecosystem surrounding Intel’s 18A process technology. 

RAMP-C is one of many long-term semiconductors programs that the US is exploring, as the supply of leading-edge semiconductor manufacturing within the US is seen as a necessity moving forward. At this time, it is unknown what financial assistance will be given to Intel and its partners to achieve these goals. 

This development is great news for Intel Foundry Services, as having the US Department of Defense as a customer is a huge win for the newly founded group. Intel has previously announced that it will be investing $20 billion to create two new fabs in Arizona. These new facilities will require large-scale customers (like the US DoD) to ensure that these new facilities remain busy and profitable.