Intel Expects a Lot from 22nm Fabrication Process

From X-bit Labs: With the transition to 22nm process technology that will start later this year Intel Corp. will also move to a new manufacturing model that will rely on four leading-edge fabs instead of three. The plan will cost Intel $9 billion this year, but Intel claims that with 22nm manufacturing process it will be able to enter a number of new markets.

"In support of expected strong unit growth in our core businesses and the movement of graphics transistors to our leading edge process technology, we are forecasting an increase in capital spending to $9 billion as we build and equip an incremental high volume manufacturing factory at 22nm," said Stacy Smith, chief financial officer of Intel, during the most recent quarterly conference call with financial analysts.

At present Intel expects to rapidly transit its PC and server processors as well as various chips for low-power and mobile applications to 22nm fabrication process. Since previously the company transited its Atom and low-cost products to newer nodes around a year after premium chips, but with the 22nm the latest fabrication process will be applied for the whole product stack.

"As we approach our 22nm transition, we are increasing our investments in manufacturing to capture what we believe is a significant opportunity for growth. [...] The market opportunities for our 22nm products are outstanding. As a result, we are growing from the model of three high volume leading-edge manufacturing fabs to four. Our 22nm process will be the foundation for growing PC and server segments, as well as a broad family of Atom-based SoCs, serving smartphones, tablets, smart TVs, and other embedded devices," said Paul Otellini, chief executive officer of Intel.

In fact, mobile devices seem to have a very high priority for the world's largest maker of microprocessors.

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