Intel: The economy is bad right now, but we still need more fabs
He gave two main reasons for the importance of expanding Intel's chip-making capacity. For one, the semiconductor industry needs to diversify the silicon supply chain by shifting production to the West from Asia, where most of the capacity for leading-edge chips is currently concentrated.
Intel also believes that the economy will rebound in due time and drive demand up for chips again, another important reason cited for expanding the company's fab footprint.by the Semiconductor Industry Association — a US lobbying group backed by Intel and other chip companies — claiming that semiconductor demand will increase 5 percent every year until 2030.
But even if Intel does make some adjustments for its new fabs, the company seems to believe demand will come back in a big way and justify massive spending on the part of Intel and Western governments:
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