Intel Strengthening Its Manufacturing and R&D

Intel, with a recent resurgence on the strength of new highly competitive microprocessors, is adding to its competitive position in R&D and manufacturing, according to market research firm In-Stat. Intel will quickly be transitioning to the 45nm process node with high-k dielectrics and metal gates beginning in late 2007, the firm says. Intel will 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.

In-Stat 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 ten 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.

Recent research by In-Stat found the following:
- 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.
- After several years of increases, Intel's manufacturing costs should begin declining in 2008.

The research, 2007 Intel Microprocessor Manufacturing & Die Cost Analysis, analyzes Intel's manufacturing strategy for capacity and technology, and how this strategy will affect Intel's manufacturing costs for current and future microprocessors.