News Analysis - AMD, etc.

Intel CEO and CEO Paul Otellini looks at the failed foundry market. He pointed out that excessive investment will lead to oversupply of capacity in the market. However, Intel has raised capital expenditures to 9 billion U.S. dollars this year and decided to re-build support for 14 nai. From the perspective of the new fabs of Mi-Tech, Intel is not worried about the capacity issue, but is afraid that rivals such as AMD and ARM-based processor vendors will rely on the foundry's production capacity and technical support to rise. And erode Intel’s market share in the processor market.

Although Intel launched the Sandy Bridge processor as scheduled this year, the 6-series Cougar Point chipset incident occurred at the end of January. Although Intel solved this issue as quickly as possible, the revised chip set started shipping last week, but the follow-up The impact still exists. Some ODM/OEM factories or motherboard makers decided to increase the adoption of the AMD platform and sell the APU to be out of stock.

At the same time, Intel successfully merged Infineon’s wireless network business group and obtained entry into the ARM architecture processor chip market. However, in this year’s largest global telecommunications trade show GSM Mobile Communications World Conference (MWC), each ODM/OEM factory The number of smart phones or tablets launched using Intel solutions is not that much. In addition, the market has also announced that Apple's iPhone 5 will be introduced in the second half of this year will adopt Qualcomm solutions, so that Intel has just incorporated Infineon mobile phone chip business, it immediately lost a large customer.

Although Intel is still the world's largest semiconductor company and dominates the computer chip market, Intel is no longer the primary partner of smart phones or tablet makers, even the world’s largest mobile phone maker, as the consumer market quickly shifts to mobile computing. Nokia also chose to cooperate with Microsoft and no longer support the MeeGo operating system it developed jointly with Intel.

Intel repeatedly expressed its lack of interest in the foundry market, but Otellini commented on the future prospects of the foundry market, which will certainly attract comments from the market and foundry industry about their “can't eat grapes”. However, this also shows that Intel can still come up with a mouthful, leaving only the leading global advanced process development capabilities, as well as autonomous fab capacity.

However, with wafer foundries such as TSMC and global wafers, advanced process technology R&D and 12-inch plant capacity scales have begun to catch up with Intel’s pace. Intel’s rivals such as AMD, Nvidia, and Qualcomm can rely on foundries. The power, and Intel's equalization in terms of technology and productivity, certainly makes Intel feel that it is not a taste.

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