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Intel Corporation Message Board

  • wallisweaver wallisweaver Mar 4, 2013 5:17 PM Flag

    Wells

    It is unlikely that Intel considers the Altera arrangement an end in itself […] We believe it unlikely that Intel will enter into many more foundry arrangements with other chip companies. Our guess is that Intel’s interest in doing the Altera foundry arrangement is that its sees this as a way of exercising how to negotiate and execute a fairly small foundry agreement, and a demonstration of its foundry capabilities, with the goal of eventually securing strategic foundry customers such as, perhaps, Apple. Intel has noted that as time passes and the costs of building leading edge fabs rises, there are fewer and fewer companies that have enough scale to justify the cost of building new fabs. We calculate that TSMC’s $9 billion in capital spending planned for 2013 represents about 50% of TSMC’s 2013 revenue and perhaps as much as 150% of TSMC’s revenue from leading edge manufacturing (i.e. 28nm manufacturing). In contrast, backing out the $2 billion Intel is planning to spending on 450mm technology which it does not expect to use in manufacturing for several years yet, Intel’s approximately $11 billion of capital spending for current and near- future technology planned for 2013 represents approximately 20% of Intel revenue (the bulk of which is derived from leading edge manufacturing). We think that revenue Intel diverts from traditional commercial foundries (whether this be Altera business or future Apple business) might reduce the appetite and capability of these foundries for high cost advanced technology development, potentially resulting in Intel widening its technology lead over other semiconductor manufacturers. We believe that a growing technology lead could significantly improve Intel’s ability to penetrate new areas such as the tablet and smartphone space against entrenched competitors such as makers of ARM-based chips.

    Sentiment: Strong Buy

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    • "We calculate that TSMC’s $9 billion in capital spending planned for 2013 represents about 50% of TSMC’s 2013 revenue and perhaps as much as 150% of TSMC’s revenue from leading edge manufacturing (i.e. 28nm manufacturing). In contrast, backing out the $2 billion Intel is planning to spending on 450mm technology which it does not expect to use in manufacturing for several years yet, Intel’s approximately $11 billion of capital spending for current and near- future technology planned for 2013 represents approximately 20% of Intel revenue (the bulk of which is derived from leading edge manufacturing)"

      Finally an analyst figured this one out....
      Regarding 150% - that applies to second year of 28nm ramp - it was far worse in 2012.
      How do they think TSMC would be able to ramp a 450mm fab?
      By loosing ALTR it's even more difficult for TSMC to ramp quickly their 16nm
      It beats me why certain analysts constantly complain about Intel capex being excessive;

 
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