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25% of Intel’s Q2 Output To Be 22nm

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Intel is ramping 22nm finfets in three fabs and expects to add a fourth in Q4, it was said at the analyst meeting following the company’s Q1 results.

The 22nm ramp in fast and Intel expects that 25% of the company’s shipment volume in the current quarter will be from processors made on its 22nm finfet process.

Intel had a flat Q1 at $12.9bn in revenues with a gross margin of 64% for a net profit of $2.7bn, and expects Q2 revenues of $13.6bn with a gross margin of 62%.

On Intel’s 64% gross margin Otellini points to the advantages of the IDM model which allows the IDM to take both the foundry margin and the architectural margin.

On its foundry plans, Intel is refusing to say where it will go long-term. It says that it is doing foundry for profit rather than other reasons but Otellini called it a “learning experience”.

Judging by the comments of people who have approached Intel for foundry, it would seem that the sticking point for them is cost. Intel’s fabs are geared up to make expensive chunks of silicon – not smartphone silicon which is about 10x cheaper.

Asked if Intel would take foundry business from Apple or Qualcomm on the grounds that they both use ARM which competes with Atom, Intel CEO Paul Otellini replied: “I have to say that, from the kind of taste it would leave in my mouth, the Apple win would be a little bit, a lot more, attractive than the Qualcomm win.”

Staff


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