Chief executive of Intel Corp. believes that the incoming and inevitable transition to manufacturing using 450mm wafers will reduce the number of semiconductor companies by half. Naturally, the outgoing Intel boss is confident that the firm will successfully undergo all changes.
“I do think there are a number of transitions coming up in this decade. We’ve got transition to 450mm [wafers] at some point; we’ve got a transition to EUV at some point. Both are going to be expensive and are going to require scale. In general, every time there has been a wafer-size change in the industry, only half of [design and production] market players [survived],” said Paul Otellini, CEO of Intel, at Sanford Bernstein technology conference.
The reason why the head of Intel is so optimistic about the success of the transition to 450mm and EUV manufacturing is clear and simple: the company has been on the development forefront of both technologies. Moreover, this year Intel invested into ASML, a leading maker of semiconductor manufacturing equipment. As a result of getting a stake in ASML, Intel gets almost full control of the transition to 450mm wafers and extreme ultraviolet (EUV) lithography.
“I think we are likely to see the structure of the industry to dramatically change in the next four or five years. It is clear to me that Intel will be viable on the other side of that [transition to 450mm],” said Mr. Otellini.
Given the volumes Intel produces now and keeping in mind that it is in process of a great expansion into the growing markets of smartphones and media tablets, transition to 450mm wafers is a logical decision for Intel. Thanks to large volumes and large wafers, Intel will reduce its production costs, something that it needs to better compete against its new rivals that belong to the ARM camp.
It is necessary to note that Intel expects smaller players, such as fabless developers of chips and actual makers of chips, to extinct as a result of transition to 450mm and EUV, a bad signal for companies with stagnating or declining sales. At the same time, the extinction of smaller players will not make the life of Intel easier as the company will face stronger competitors with high ambitions.
Tags: Intel, Semiconductor, ASML, 450mm
Comments currently: 11
Discussion started: 12/10/12 01:30:03 AM
Latest comment: 12/12/12 04:11:25 PM
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Otellini Godfather subtext: We want to scare you out of investing in our competitors. If you don't follow our advice or if you're still unsure, then our Intel mafia "sales" reps will pay you a personal visit.
12/10/12 01:30:03 AM]
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If you looked into 300-450 transition you would understand why so happens. The cost is way too high for many manufacturers. Same happened when chipmakers were transitioning from 200 to 300 mm wafers.
So it is a mere observation that can be confirmed by anyone who is working in the field.
Here are some works with data to backup it.
12/10/12 05:53:56 AM]
EUV face delays after delays, and will not be raedy before 2020. Of course, Intel traditionally will begin production in 2018 on beta tools, and sell these experimental chips from 3% yeld, just to tell whole word 'we are first'.
Change to 450 nm has nothing common with chip design. Using 450mm will be gradually and limited, as with today 300 mm. Smaller 200mm wafers are stil in production.
Smaller design teams are leaving market CONSTANTLY, not because problems with production, but because increasing chip integration. Who want today buy separate sound or network card, for example ?
Otellini talk is clear BS.
12/10/12 05:05:34 AM]
Nothing new here, Intel has always strived to create a monopoly environment. Their shady business practices are well documented. I encourage everyone to support AMD and the other players in the market to keep them in check.
12/10/12 05:18:41 AM]
That photo is my new wallpaper.
12/10/12 11:19:31 AM]
Anyone who thinks the 450mm transition is going to get rid of all competition for Intel isn't in sync with the industry. TSMC, Samsung, and Globalfoundries are also on-board. The fact that these other manufacturers are also making ARM processors for the industry means Intel's competition will be neck-and-neck with them. There's a good article describing the battle that will ensue at:
12/10/12 12:42:23 PM]
12/10/12 01:19:31 PM]
The Haswell processor naming confirm 13 processor will be listed in the first launch wave:
Intel Core i5-4670K 3.4ghz (3.8 Turbo) 84W TDP = i5-3570K successor
Intel Core i7-4770K 3.5ghz (3.9 Turbo) 84W TDP = i7-3770K successor
Expected launch date April 2013.
12/11/12 11:46:46 AM]
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