Intel Corp (INTC)

[kpf]

elmer

MK has the line of arguments wrt regulations:
http://news.zdnet.co.uk/hardware/0,1000000091,39286459,00.htm
Two questions remain open for now:
1. Which fab will be moved to Dalian?
2. What die China throw in this deal beyond money?

We will learn about the former question soon, i guess, probably with an announcement of a 32nm fab at this site. The latter might become visible over time.

Anyway, i look at it as a dam-break with significant impact for Intel: It can maintain its manufacturing model and grow into lower-key silicon-markets, increasing walletshare.

I'd expect it to make best use of this by integrating its business-model thisrespectively. Probably goes the way the automotive business works nowaday, moving from supplying components to systems.

Bad news for Asian foundries. These will feel margin pressure next decade from Intels China and India-fabs.

K.