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On Friday, chip manufacturer Intel (INTC.O) announced the commencement of high-volume production utilizing extreme ultraviolet (EUV) lithography machines at its $18.5 billion facility in Ireland. The company hailed this development as a “landmark” moment in its efforts to regain a competitive edge against rivals.
Once the leading chip manufacturer globally, Intel had ceded its position to Taiwan Semiconductor Manufacturing Co (2330.TW). However, Intel asserts that it is poised to reclaim its leadership position through advanced manufacturing technology that is expected to rival the best offerings from its Taiwanese counterpart.
Key highlights of this milestone include:
Technology Advancements and Goals:
Intel is progressing toward its goal of delivering five generations of technology within a span of four years. The EUV tools, known for their exceptional precision, will play a crucial role in achieving this objective.
EUV Technology and Impact:
The EUV tools boast precision levels comparable to hitting a person’s thumb with a laser pointer from the moon. They will significantly contribute to Intel’s manufacturing processes and the development of its forthcoming “Meteor Lake” chip for laptops, paving the way for AI-powered PCs.
Manufacturing Process and ASML Machines:
The Intel 4 manufacturing process, utilizing EUV technology, is being implemented at the high-volume plant in Leixlip, Ireland. The EUV machines, manufactured by Dutch company ASML (ASML.AS), are massive in size and come at a substantial cost of around $150 million each.
Intel’s Expansion Plans and European Presence:
Intel is set to receive the next-generation extreme ultraviolet lithography machine, the High-NA EUV, later this year in Oregon, solidifying its commitment to advancing technology. Additionally, Intel plans to expand its operations with significant chip complexes in Germany and a semiconductor assembly and test facility in Poland, benefiting from favorable funding rules and subsidies within the European Union.
Inaugurating the Irish plant, Intel CEO Pat Gelsinger expressed optimism, stating that it marked the “best day for Europe.” This move underscores Intel’s dedication to technological advancements and its strategic positioning within the semiconductor industry.
