Intel Corp (INTC)

[ssami]

Cap Ex reduction, Phone is new pc etc.

Intel capex reduction is because of the following reasons

1. Samsung/TSMC dont have full 14nm (front/back) end
2. Their yields suck.
3. TSMC gave up on 14 and going straight to 10nm
4. Intel has about 1-2 years lead (including full 14 nm with 99% yield)
5. Intel will reuse equipment, and factories optimally for 10 nm

So Intel can afford to cut the capex for 1 year.


As for phone is the new PC. Intel is honning in on with SFF/VSFF NUC pcs as well as compute stick. What stops intel from not putting a skylake core M on a 5-7in Device with win10 running with LTE capability (nothing). We just have to wait and watch. Intel needs to feel comparable that the customers will pay top dollar for such a device. It does not want to sell below cost.

At this point they may go after Microsoft/Lenovo/asus/lg/xaumi with the design(5-7 in phone), or might choose to give the FFRD to an entirely new vendor.