Intel's x86 - Foundry Breakup Comes into View
The announcement by Intel during their January earnings call that they were going to hike Capex in 2013 over 2012 left many folks scrambling as to the reasons and the what-the hecks? Here was a company that was exiting 2012 with 50% utilization of their advanced 22nm process and yet signaling more building was to come. Furthermore, this increase seems counter to the claim that most of its current 22nm tools can be repositioned to the 14nm Fabs that ramp later this year. It was Paul Otellini who spoke the words of the strategy that likely came from Intel Chairman and Manufacturing Guru: Andy Bryant. Could Intel be saying that to ultimately win they had to hit the gas pedal guessing that only they could get to 14nm and then 10nm with cash still in the bank? Or is there something else at play (i.e. a Breakup of x86 from Foundry followed by the signing of multiple large customers).
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