Intel Corp (INTC)

[Ideal_Inv]

Can Russ Fischer be right?

Russ has been talking about Intel having some unannounced plan for utilizing its new factories in AZ and OR. The core of his argument (as I understand it) is that the capacity that was being built is way over what Intel's PC/Tablet/Smartphone offerings can absorb in the near-term.

Russ had mentioned NAND/SSD and other non-volatile memory as a big possibility.

Here is an excerpt from EE Times today. Twice the Intel spokesman has mentioned "future technologies" as an use for the AZ Fab.

So, could Russ Fischer be right? Will Intel surprise us with a new product offering or innovation that can absorb the huge new capacities at the AZ and OR fabs?

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In an email exchange with EE Times, an Intel spokesman said yesterday that Intel’s Arizona site is the head site for high volume manufacturing of its newest 14-nm manufacturing process. All existing fab capacity in Arizona is capable of manufacturing on both 22-nm and 14-nm processes. “Meanwhile,” he added, “the new manufacturing facility, which is completed, is targeted for future technologies. The new construction was originally slated for 14 nm but through an ongoing drive in manufacturing efficiencies Intel was able to continue to use its existing buildings for 14 nm. This allows us to maintain the new building for additional capacity flexibility and future technologies.”

Asked if this meant that yesterday’s reports that Intel had effectively closed one of its fabs were inaccurate, the spokesman wrote “there were many reports that were problematic yesterday. What we have is a shell of a fab, it is not equipped and never was equipped but can be if we need it. Right now we are holding it for future technology.”
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http://www.eetimes.com/document.asp?doc_id=1320691