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Intel Corporation Message Board

  • wrightwhoe wrightwhoe Apr 14, 2013 4:32 PM Flag

    well well so it looks like FAB 42 is being MOTHBALLED

    The hints of trouble were there, if you were in Arizona. Intel's four fabrication plants in the Arizona area are all reportedly running below capacity, with one not even operational. Fab 12, which makes processors, has been below capacity; Fab 22, which makes chipsets, is also running below capacity, as is Fab 32. Fab 42, the newest, isn't even running.

    "The walls are up, and they took in some equipment, but they are delaying outfitting it. They don't want to call it mothballing it. They are delaying taking equipment orders until they are needed, and some equipment has been rerouted to Oregon," said McGregor.

    That is a 5 billion dollar mothball.

    Sentiment: Sell

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    • MOTHS everywhere !!!!

      Sentiment: Strong Sell

    • Intel is a master at managing excess capacity but it doesn't surprise me that you try to turn this into a negative. I mean - what else have you got? You have no traction issues. With Haswell, Clover Trail, Bay Trail and Airmont on the way, Intel will have a lot of uses for that excess capacity. With its choice of high end foundry customers, Intel will have lots of uses for that capacity. With ARM still unable to meet 28nm demand, Intel will have lots of uses for that excess capacity.

      With a major mobility player already having been lined up for foundry work, Intel will have a lot of uses for that excess capacity. Extra state-of-the-art capacity is a wonderful thing as we found out with all of the coverage of the Altera deal. And it is likely that Intel already has customers lined up for a lot of that capacity but are simply unable to announce it yet.

      That's the real story behind the excess capacity and the one you don't want anyone to know. Intel has excess capacity. ARM doesn't. Intel has the ability to take on much more business and generate new revenues. ARM doesn't. End of story...

 
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