Intel Strengthening Manufacturing, R&D, In-Stat Reports

With a recent resurgence on the strength of its microprocessors, chip giant Intel Corp. is adding to its competitive position in R&D and manufacturing, notes Scottsdale, Ariz.-based market research firm In-Stat.

The firm reminded that Intel will be transitioning to the 45nm process node with high-k dielectrics and metal gates beginning late this year and believes Intel will also be looking to further enhance its semiconductor manufacturing offerings in 2009 with new technology at the 32nm process node and, likely, a new round of new and refurbished fabs.

Jim McGregor, director of semiconductors and enabling technologies research at In-Stat, said the firm believes Intel will remain the technical leader and largest semiconductor manufacturer for the foreseeable future because of its continued investment in new process technology and capacity.

"By 2010, there are likely to be only five to 10 major semiconductor manufacturers building their own fabs, and fewer than five separate process technologies because of the growing reliance on co-development/partnership efforts in the industry," he added in a statement.

Other key points In-Stat has found through its research include:

- Intel's capacity expansion has slowed from the jump created by the 300mm wafer transition and initial dual-core ramp-up.

- Intel now has enough combined 200mm and 300mm capacity to satisfy estimated demand for microprocessors, core-logic chip sets, and other supporting devices.

And after several years of increases, Intel's manufacturing costs should begin declining in 2008.

The firm's research analyzes Intel's manufacturing strategy for capacity and technology, and how this strategy will affect the company's manufacturing costs for current and future microprocessors. The research is based on In-Stat's fab model for Intel total fab capacity for microprocessors (x86 and IA-64 microprocessors used in mobile, desktop, and enterprise computing solutions) and In-Stat's microprocessor model of Intel's CPU die sizes and shipments. It also includes estimates for Intel's manufacturing costs at maturity by microprocessor.