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Re: borusa post# 150149

Friday, 07/27/2018 3:22:33 AM

Friday, July 27, 2018 3:22:33 AM

Post# of 151655
from the Q&A session in the conference call:

Pierre Ferragu -- New Street Research -- Analyst

Hi, thank you for taking my question. A quick follow-up on 10-nanometer -- when I look at this timeline between now and the Christmas season next year, it's 18 months, a very long time to improve. I have two questions on this one. The first one is could you give us some color on what are the most challenging aspects of the process that you need to address to improve use? What's the most challenging in the 10-nanometer process? Then my next question is how do you think about the impact of this delay on your competitiveness? Where do you think it's going to help you the most?

Murthy Renduchintala -- Group President of Technology, Systems Architecture, and Client Group and Chief Engineering Officer

So, let me take that. I think as we look at what we need to do in 10 nanometers, again, let me replay some of the data we shared on our April call. Recall that 10 nanometers strived for a very aggressive density target beyond 14 nanometers, almost a 2.7x scaling. Really, the challenges that we're facing on 10 nanometers is delivering on all the revolutionary modules that ultimately deliver on that program.

While there's risk and a degree of delay in our timeline on that, where we're very pleased with the resiliency of our 14-nanometer roadmap, in the last few years, we've delivered an excess of 70% product performance improvement as we've moved through our 14-nanometer generation of products.

So, as we look at 2019 across both the client and data center space, we feel very good about the product competitiveness of our 14-nanometer program. That to some degree is factoring into our timing on 10-nanometer and launching 10-nanometer at a point in time where we believe the yields are at a level that make it prime for volume production. So, 14-nanometer through the rest of this year and through 2019 continues, we believe, to drive product leadership across all of our portfolio in client and server.
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