Intel and UMC will jointly produce 12nm chips in Arizona fabs

Intel and Taiwan’s UMC will jointly produce chips. The companies are entering into a partnership to produce chips using a 12nm process in three American fabs for mobile networks and communications infrastructure, among other things.

Intel and United Microelectronics Corporation will jointly develop a new 12nm process. The companies mainly want to make these chips for business applications, especially for networks, mobile networks and communications infrastructure, which are growing rapidly, according to Intel and UMC. The companies will enter into a ‘strategic partnership’ for this purpose, but will not start a separate company or joint venture for production.

The production itself will take place in three of Intel’s chip factories in Arizona, specifically Fab 12, 22 and 32. In those factories, Intel is already building chips in the 7nm and 10nm classes. By having production take place there in Ocotillo, companies have to invest less, because they can use existing equipment and have to optimize less.

There is another geographical advantage for UMC. The company is the second largest chip manufacturer from Taiwan, behind TSMC. By moving the production process to America, the company hopes to reduce the risk of tensions with China. The production process, in which Intel wants to use finfets, should start in 2027.