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Intel: Foundry business is in oversupply trouble

2/18/2011 09:22 PM EST
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AlvinL0
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re: Intel: Foundry business is in oversupply trouble
AlvinL0   2/19/2011 1:51:46 AM
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I suppose if you are having oversuppy trouble, you shouldn't suppy so much ;-)

the_floating_ gate
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re: Intel: Foundry business is in oversupply trouble
the_floating_ gate   2/19/2011 4:02:11 AM
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It's kind of funny Intel is commenting on foundry business - unless they were thinking entering the business

the_floating_ gate
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re: Intel: Foundry business is in oversupply trouble
the_floating_ gate   2/19/2011 5:00:39 AM
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Otellini You would think Otellini's plate is full - is Otellini stupid enough to call TSMC trailing edge?

SiliconAsia
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re: Intel: Foundry business is in oversupply trouble
SiliconAsia   2/21/2011 8:27:38 PM
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Becuase foundry over-capacity affects Intel's strategy and bottom line indirectly. Intel's competitors especially ATOM's competitors will get lower asp and plenti of capacity.

yalanand
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re: Intel: Foundry business is in oversupply trouble
yalanand   2/19/2011 12:27:57 PM
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If Otellini is really so much worried about overcapacity, why is Intel building so many new fabs? Are these comments, tactic by Otellini to divert the attention of rival companies ?

SiliconAsia
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re: Intel: Foundry business is in oversupply trouble
SiliconAsia   2/21/2011 8:28:55 PM
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There is no choice for Intel other than building all their capacity needs.

RobDinsmore
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re: Intel: Foundry business is in oversupply trouble
RobDinsmore   2/19/2011 1:13:01 PM
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I am confused by this. I think Otellini is hoping for a miracle in mobile. Tablets and mobile phones are a huge growth opportunity for foundries, yet Intel does next to nothing in these markets. They recently lost the Nokia Meego partnership and Atom is not showing up in any winning tablets. To make matters worse, MS is going to release a Windows OS on ARM. Where does this leave Intel if tablets replace the consumer notebook? Sorry Paul, I just don't buy it. Also I think Intel also "makes" their money on trailing edge technology. It's just accounting semantics. New technology doesn't start to pay for itself until it is in full high volume production, and when that happens, the next gen tech is starting to ramp up.

David6108
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re: Intel: Foundry business is in oversupply trouble
David6108   2/19/2011 10:31:46 PM
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I have heard so many similar comments in the past from companies like TI, Motorola, IBM, ..etc. What happens to these guys? Otellini is either too arrogant or naive. Sorry to see Intel has such a learder. Do not worry, TSMC will continue to be the winner with huge profit. Foundry Guru

rfab
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re: Intel: Foundry business is in oversupply trouble
rfab   2/20/2011 3:38:49 PM
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David6108 ---------WHERE IS TSMC"S 28nm ,AND TSMC"S 40nm IS VERY BAD,28nm IS WORSE

SiliconAsia
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re: Intel: Foundry business is in oversupply trouble
SiliconAsia   2/21/2011 8:30:10 PM
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TSMC 28nm and 40 was bad experience but others were not even present in the market.

rfab
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re: Intel: Foundry business is in oversupply trouble
rfab   2/20/2011 3:47:25 PM
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TSMC will continue to be the winner with huge profit.--Buy an external IP. synthesize products. Measured by the generation of factory-built sealed pattern, so that the semiconductor gradually becoming less and less profit, after the TSMC 45 shattered the myth of high yield, 40NM, YELD still 40%

rfab
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re: Intel: Foundry business is in oversupply trouble
rfab   2/20/2011 3:49:26 PM
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TSMC is getting behind the big INTEL, TSMC 28HP and INTEL 22 with mass production, and to know the performance behind TSMC INTEL generation, plus the amount of time to produce one generation behind, behind two generations together, and. letter to get eternal life TSMC ? TSMCYY actually very successful, so much IDM FAB-LITE, and can be effective getting worse. . . . . . "We are discussing how best to use external resources. " Chen Weiming, president of TI Asia, "Global Entrepreneur " said. OEM is the highest guiding principle of the internal Texas Instruments, which dropped after the order of 45 nm process, the large customers already had Sun Microelectronics (Sun Micro) 45 nm chip manufacturing orders to TSMC. ... make good use of external resources TI baseband market collapse, OMAP in decline

rfab
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re: Intel: Foundry business is in oversupply trouble
rfab   2/20/2011 3:49:59 PM
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TSMC is getting behind the big INTEL, TSMC 28HP and INTEL 22 with mass production, and to know the performance behind TSMC INTEL generation, plus the amount of time to produce one generation behind, behind two generations together, and. letter to get eternal life TSMC ? TSMCYY actually very successful, so much IDM FAB-LITE, and can be effective getting worse. . . . . . "We are discussing how best to use external resources. " Chen Weiming, president of TI Asia, "Global Entrepreneur " said. OEM is the highest guiding principle of the internal Texas Instruments, which dropped after the order of 45 nm process, the large customers already had Sun Microelectronics (Sun Micro) 45 nm chip manufacturing orders to TSMC. ... make good use of external resources TI baseband market collapse, OMAP in decline

rfab
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re: Intel: Foundry business is in oversupply trouble
rfab   2/20/2011 3:50:11 PM
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Buy an external IP. synthesize products. Measured by the generation of factory-built sealed pattern, so that the semiconductor gradually becoming less and less profit, after the TSMC 45 shattered the myth of high yield, 40NM, YELD still 40%

rfab
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re: Intel: Foundry business is in oversupply trouble
rfab   2/20/2011 3:51:52 PM
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David6108 --That you are EW"s David,You are very poor level of

paul.delamusica
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re: Intel: Foundry business is in oversupply trouble
paul.delamusica   2/20/2011 6:31:43 PM
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:)

rick merritt
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re: Intel: Foundry business is in oversupply trouble
rick merritt   2/21/2011 2:07:26 AM
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I suspect Otellni was trying to defend to a skeptical Wall Street his decision to commit billions to more fabs. A bigger worry for Intel may be whether Intel will be in oversupply come the 14nm generation when ARM could be making big in roads in traditional PCs.

Baolt
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re: Intel: Foundry business is in oversupply trouble
Baolt   2/24/2011 12:59:20 AM
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if there was oversupply why fablite/fabless companies suffered during '10-Q3&Q4 coz' of delayed shipments/outcomes where big players had the bigger pie always on time? Where was this overcapacity and why did foundries let their small size customers down? Another Otellini speech where he is trying to mirror focus on other direction. I truelly agree with u @Rick, where are intel's serious moves against ARM? soon after it will be too late

mranderson
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re: Intel: Foundry business is in oversupply trouble
mranderson   2/21/2011 2:59:44 AM
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I don't see trouble for TSMC and GF in the future. Nor do I see trouble for Intel of Samsung. Wall Street has never liked fab expenditures, despite the fact that they drive much of the growth. TSMC hopefully will get their act together for 28nm since 40nm had significant issues. If TSMC continues to have issues at new nodes, GF may gain.

SiliconAsia
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re: Intel: Foundry business is in oversupply trouble
SiliconAsia   2/21/2011 8:35:07 PM
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mranderson, How will GF gain? Who's using GF's 40 and 28nm today?? Have not heard anyone claiming they are using GF technology today, have you? If you know, please copy the links here. TSMC is the only foundry who're having these issues. Others even don't know what the issues are!

friedrich II
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re: Intel: Foundry business is in oversupply trouble
friedrich II   2/22/2011 1:45:50 PM
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GF may gain a yield advantage, a cost advantage and new customers for new nodes.

fdunn0
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re: Intel: Foundry business is in oversupply trouble
fdunn0   2/22/2011 3:20:04 AM
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So then AMDs decision to dump its foundries was not a bad one after all. Since they will not have to pay a premium while the foundry is not at 100%.

KB3001
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re: Intel: Foundry business is in oversupply trouble
KB3001   4/7/2011 11:08:43 PM
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Not sure about that. It makes sense if you are a complete solution provider, otherwise it's quite risky.

Les_Slater
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re: Intel: Foundry business is in oversupply trouble
Les_Slater   2/22/2011 4:08:35 PM
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Intel is a large and profitable chip producer. I am sure they are keenly aware that Windows and x86 are running out of steam. And they're expanding capacity while at the same time pointing out an overcapacity in the industry? So what gives? There is more than one metric that needs to be addressed to be successful in the evolving mobile market. Of course power consumption is of prime importance. Also of great importance is cost. Intel could manufacture an Arm license but that incurs royalties. Intel in the past, with some notable failures, has attempted to architect to meet specific applications. The 432 comes to mind. However, Android type environments could benefit from a specific architecture. There is, in my opinion, the likelihood of increasing power/workload efficiency while reducing cost. To do this Intel needs to step back and approach the silicon/software solution much more holistically. It would mean substantially increasing the software side of the equation.

Silicon_Smith
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re: Intel: Foundry business is in oversupply trouble
Silicon_Smith   2/27/2011 8:55:03 PM
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Sounds like Intel is trying hard to justify its own investment strategies! How exactly is TSMC a trailing edge, by the way?

resistion
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re: Intel: Foundry business is in oversupply trouble
resistion   3/5/2011 8:39:45 AM
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UMC so far ignored but last I checked it's still #2, just ahead of GF. Has it dropped behind so rapidly, at least in reputation?

Robotics Developer
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re: Intel: Foundry business is in oversupply trouble
Robotics Developer   3/30/2011 10:33:08 PM
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I wonder how much the production interruptions in Japan could play into the "over-supply" of Fabs? It seems wise to have diverse Fab locations and while very expensive to build/run, owning your Fab does give you control over your destiny (for good or for bad).

Sheetal.Pandey
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re: Intel: Foundry business is in oversupply trouble
Sheetal.Pandey   3/31/2011 11:07:55 AM
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I am not sure if I agreee thayt foundry business is in trouble. I gues with times to come chip businesses will only accelerate.

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