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Presumably this means that Intel expects margins on the auto chips to be higher than on what this capacity could be producing for Intel's own products. Given In
by klelatti 6y ago
Presumably this means that Intel expects margins on the auto chips to be higher than on what this capacity could be producing for Intel's own products. Given Intel's margins are already high this could mean:
- Very, very attractive margins on the auto chips.
- Much lower expected margins on Intel chips or idle capacity.
So which is more likely?
(and of course Intel quickly establishes a position in a new market in line with PG's strategy and gets some good PR).
- PartiallyTyped 6y agoNeither. Probably recycling/repurposing of older fabs. Afaik car manufacturers are not looking for cutting edge chips found in memory, cpus and gpus, so older fabrication lines can be repurposed for that role and provide an alternative revenue stream for intel until they manage to sort their CPU fab line out.
- klelatti 6y agoNot convinced. Multiple processes mentioned in the piece. Maybe there is capacity being freed up as 10nm comes on-stream but seems likely that they are anticipating some weakening of demand or moving some work to TSMC.
- PartiallyTyped 6y agoThey certainly expect lower demand on their current chips as they run hot(er) and with fewer cores. They have bought a percentage of TSMC's production but TSMC is not very hot about them either as they are building new fabs for their 7nm chips.