Intel: Introducing Integrated Project Delivery to Transform Semiconductor Facility Construction

Project Overview

Intel, a global leader in semiconductor manufacturing, needed a new ability to rapidly expand its manufacturing capacity to stay ahead in an industry with ever-shortening product cycles. Traditional facility design and construction methods were too slow and costly, limiting Intel’s agility in bringing new FABs online.

VISION Consulting partnered with Intel to introduce a new way of delivering complex manufacturing projects – integrating all key contractors under a shared risk-and-reward framework and embedding collaborative planning practices. The goal: cut construction costs by 30% while fostering a culture of ownership across the supply chain.

Challenge

Intel faced multiple pressures:

• Rapid product innovation cycles requiring faster manufacturing capacity build-out.
• High facility costs and extended build timelines driven by mistrust and fragmented coordination across contractors.
• Continuous design changes during tool installation due to evolving production requirements and market forecasts.
• A claims-driven construction culture, where individual contracts incentivised local optimisation over project-wide success.

The scale was enormous: installation of 700 semiconductor tools – each costing between $25M and $100M – requiring complex mechanical and electrical integration. Not including tools, the project budget exceeded $1B. Intel needed a breakthrough in delivery speed, cost, and collaboration.

Approach

VISION worked with Intel to replace the traditional contract structure with an Integrated Project Delivery (IPD) model. This single, overarching agreement united eight mechanical and electrical contractors—the Trade Partners—with Intel’s Construction Services team under one set of goals and incentives.

Key actions included:

Programme Governance: Designed a new project governance structure, with a Project Management Team comprising equal representation from Intel and Trade Partners, each with equal decision-making authority.

Rolling Planning System: Introduced a week-by-week planning and review process, highlighting risks early and enabling proactive problem-solving.

Cultural Shift Coaching: Trained project teams to move from adversarial, contract-bound relationships to collaborative, trust-based working. Daily huddles and structured forums encouraged open discussion and joint decision-making.

Lean Implementation: Supported initiatives to reduce the seven wastes – Waiting, Over-Processing, Overproduction, Motion, Inventory, Defects, and Unused Talent. Incentives encouraged frontline workers to suggest and implement efficiency improvements.

Union and Industry Engagement: Facilitated constructive conversations with trade unions and industry bodies to manage workforce expectations during change.

Results

VISION delivered:

• 30% Reduction in Construction Costs – Achieved through better coordination, early risk management, and elimination of waste.
• Faster Delivery Capability – Weekly rolling plans enabled the project to adapt rapidly to evolving tool configurations and production needs.
• Collaborative Culture – Contractors and Intel teams worked as equal partners, sharing accountability for outcomes and aligning on project priorities.
• Sustainable Practices – The IPD model and rolling planning approach left Intel with a repeatable blueprint for future FAB construction.

Conclusion

By tackling the root causes of inefficiency – fragmented contracts, mistrust, and reactive planning – VISION helped Intel turn a high-risk, high-cost project into a showcase of collaborative delivery. The introduction of IPD not only met the ambitious 30% cost reduction target but also positioned Intel to compete more effectively in a market where speed to capacity is critical.