Here's Why Intel Is Spending $500 Million More on Chip Equipment This Year

Chip giant Intel (NASDAQ: INTC)is a type of company that's commonly referred to as an integrated device manufacturer, or IDM for short. This means the company both designs chips and manufactures those chips. Most chip companies aren't IDMs but are instead what are referred to as fabless semiconductor companies -- a fitting name since a chip manufacturing facility is often referred to as a "fab," which is short for "fabrication plant.

" These companies produce their own chip designs, but they rely on third parties, known as foundries, to manufacture them.