Dwarkesh Podcast · Thursday, October 22, 2026
Intel executives explained the extreme capital intensity of modern semiconductor foundries, noting that approximately 80 percent of a fab's cost structure is fixed, making high utilization and yield improvements vital for economic viability and financial returns.
“Once you build a fab, like 80% of your cost structure is fixed. And so what that means is, every extra percentage of utilization is adding far more in revenue.”