The manufacturing move would appear to be in part being made to address a shortfall in production capacity that occurred in 2018 (see Intel blames production shortfall on strong demand). Intel has put this down to unexpected demand but it was also partly exacerbated by Intel's slowness at bringing its 10nm manufacturing process up to speed. In a few years Intel has gone from the acknowledged manufacturing leader to a follower behind TSMC and Samsung.
"Having additional fab space at-the-ready will help us respond more quickly to upticks in the market and enables us to reduce our time to increased supply by up to roughly 60 percent," said Kelleher.
Kelleher added that Intel would continue to make selective use of foundries and pointed out that makes sense as Intel starts to make a greater diversity of products.
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