Otelini: There’s a lot of stuff in the pipeline. As you know, it takes a while to move your designs over, to design them under our process, to bring them in house and so forth. And our foundry customers aren’t going to announce that they’ve moved until they’ve moved because it would hurt them at their previous suppliers. So for obvious reasons, this has been a lower-profile kind of deal.
" I think it make sense for us to have that kind of capability, particularly as our semiconductor lead gets wider over the rest of the industry. That allows us to consider and take business on a value pricing model versus cost-plus pricing model, which is what the foundry industry in general uses. I don’t’ think that makes sense for us. We want to get paid for the value of, for the performance of the transistors."
To me, it sounds like 1) Intel will be doing foundry for a large customer and move is already in progress. I think it is a large customer because why would it hurt this customer so much if previous suppliers knows? and he also said "THIS has been a lower-profile kind of deal"..indicating THIS one large customer 2) He stresses that Intel wants to take on foundry business only if it adds 'value'. To me this sounds like (if he is refering to the same customer) Intel will be manufacturing ARM chips for this customer. Why? Because Cisco does not use ARM (some one correct me if I am wrong here), so how would manufacturing for Cisco bring 'value' ? Manufacturing Apple's ARM chips now temporarily and later, when Bay Trail or later product is ready, having intel inside iPad, brings value.
To me it sounds like it can possibly be Apple that he is refering to. But overall still very vague to intepret with certainty.
Also interesting is when he said "as our semiconductor lead gets wider over the rest of the industry"....Intel's process lead is getting wider....
"As you know, it takes a while to move your designs over (from foundry X), to design them under our process (foundry Y), to bring them in house and so forth"
don't hold your breath for the anals - looks like someone might be loosing some high margin foundry business