Intel Corp (INTC)

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Elmer, that will depend on what manufacturing process a Calexico chip is on. If it's .25u, Intel may not have any to spare, since the majority of their fabs have transitioned to newer processes. TSMC still has plenty of capacity at smaller dimensions, though.

However, while that would be the simplest explanation, it's more likely that new communications devices are new being produced at the .18u level. In this case, it's all speculation, but my hunch is that Intel is trying to wind down .18u operations, and move everything to .13u. They are probably pretty loaded with other .18u chipsets and devices, and they may not want another device taking up precious resources when it's not cost effective for them to do so.

Therefore, Intel may be outsourcing due to the overhead involved in transitioning older processes. I think this has little relevance to Intel being capacity constrained in any of their newer fabs.

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