Intel's Manufacturing Strength Still Preeminent, Reports In-Stat

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 13, 2005--Intel continues to lead the semiconductor market in manufacturing process development and in fab capacity, reports In-Stat (http://www.in-stat.com). Intel currently has three 90nm fabs, and will have four 65nm fabs, including one retro fit and one 90nm conversion, ramping in 2006, the high-tech market research firm says. But future process technologies will pose challenges as Intel and the rest of the industry struggle with rising leakage current and limitations with current process technology.

"As other semiconductor manufacturers turn towards partnerships for developing new process technologies and manufacturing capacity, Intel is one of the few vendors that can continue to push ahead alone and uses its technology and capacity as a competitive strength," said Jim McGregor, In-Stat analyst. "For example, in 2004, with a strong transition to the 90nm process node and 300mm wafers, Intel realized an estimated savings of $1 billion in manufacturing costs."

“As other semiconductor manufacturers turn towards partnerships for developing new process technologies and manufacturing capacity, Intel is one of the few vendors that can continue to push ahead alone and uses its technology and capacity as a competitive strength”

A recent report by In-Stat found the following:

-- Despite the rising cost of fabs, mask sets, and in some cases, the die size, Intel's average manufacturing cost per die will remain relatively constant at approximately $40 during 2003-2005.

-- Intel's continuous goal to shrink die sizes has resulted in the ability to double on-chip cache sizes with every process generation. In the future, however, Intel will be balancing the use of this transistor budget for more memory and additional cores as a way to increase performance.

-- With the transition to 65nm, Intel is planning to begin moving its entire product portfolio, including logic and memory, to a single process.

The report, "Intel Manufacturing and Die Cost" (#IN0501748IN), provides in-depth analysis of Intel's manufacturing capacity for mainstream microprocessors for PCs and servers, and an overall estimate of total capacity for all products. It also analyzes Intel's die cost for microprocessors. Since Intel and most semiconductor companies closely guard manufacturing data, all the information contained within this report is based on detailed In-Stat models that estimate Intel's microprocessor shipments, fab capacity, and die cost.

For more information on this report, please visit: http://www.instat.com/catalog/Scatalogue.asp?id=86 or contact Tina Sheltra at 480-609-4531 or [e-mail]. The report price is $2,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.