Replies to post #86834 on Intel Corp (INTC)

[chipguy]

Outside of processors, does Intel succeed anywhere??

Intel pulls in over 80 cents out every dollar spent in the
world on microprocessors (all processors, not just x86),
one of the most, if not THE most profitable segment in
the semi industry.

Intel pulls in about 14.2% of all total world spending on
semiconductors (roughly twice second place Samsung)
and probably more than a third of the total world profits
from semiconductors.

It is pretty hard for Intel to push into new areas and
appear as successful as it is in processors because
everything else is either near zero average profitability
like DRAM and flash or horribly fragmented markets
that can add only tiny increments to Intel's top line.

[tecate]

chipsets and when you are Intel you are allowed, and we wouldn't want the FTC after Intel with Flash now would we ? lol.

[morrowinder]

Andy Grave: Typical...

Take the inquirer at its word. Never mind that the article is one gross generalization after another. And you conclude that Intel must suck. Shocking...

[RobertG]

Yes, they are lagging in flash.

Comment: Toshiba gains in NAND, Intel lags

Mark LaPedus
(12/17/2009 6:08 PM EST)
URL: http://www.eetimes.com/showArticle.jhtml?articleID=222002635





SAN JOSE, Calif. -- Samsung Electronics Co. Ltd. is still leading in NAND flash, but Toshiba Corp. is gaining ground, according to the new third-quarter rankings from iSuppli Corp.
The real head scratcher is Intel Corp., which continues to trail in the rankings. This begs a question: Just how long will Intel hang on in NAND?

Overall, NAND is recovering after a major downturn. Global NAND flash memory revenue in the third quarter rose to $3.94 billion, up 25.5 percent from $3.1 billion in the second quarter, according to iSuppli.

NAND flash is expected to achieve double-digit growth with a projected 16.4 percent rise in revenue for the year, according to iSuppli. In contrast, global semiconductor revenue in 2009 is expected to decrease by 12.4 percent.

NAND flash average selling prices (ASPs) have grown this year as NAND suppliers slashed production in response to a market oversupply during the fourth quarter of 2008 and the first quarter of 2009, according to iSuppli.

The overall NAND ASP rose by 18.5 percent in the second quarter and by 40 percent in the third quarter. The ASP is projected to hold steady in the fourth quarter with a 2.9 percent decrease, based on iSuppli's preliminary estimate.

"In 2009, NAND flash suppliers decided they no longer wanted to bleed red ink. By shutting down some of their 200-mm production lines, the NAND flash suppliers were able to reverse the oversupply, boosting prices and expanding market revenue," said Michael Yang, senior analyst, memory and storage for iSuppli, in a statement.

In the rankings, Toshiba outperformed the overall market in the third quarter, with its NAND revenue booming by 47.5 percent to reach $1.4 billion, up from $924 million in the second quarter, according to the firm.

Toshiba's revenue surge allowed its share of global NAND flash revenue to rise to 34.6 percent in the third quarter, up from 29.4 percent in the second quarter, solidifying its hold on the market's second-place position behind Samsung.

"Toshiba in the third quarter was able to capitalize on favorable NAND market conditions with its expanded capacity and high average selling price (ASP)," said Yang. "The company was able to expand its shipments. Furthermore, the company is the leader in production of three-bit-per-cell parts, which have lower manufacturing costs, thus improving profitability."

In the NAND rankings, Hynix was third, followed by Micron, Intel and Numonyx. Numonyx BV has a niche strategy in NAND; it more or less goes after embedded applications.

Intel and Micron Technology Inc. have a joint NAND venture, dubbed IM Flash Technologies LLC. Micron has done a respectable job in NAND, but Intel continues to lag in the rankings.

Intel develops NAND, mainly for its own solid-state disk (SSD) lines. Intel is strong in the SSD enterprise market.

But at one time, there were rumors that Intel wanted out of NAND, due to poor margins. It was reportedly looking to sell its stake in IM Flash.

Is 2010 the year Intel bails in NAND? Intel has already exited the NOR market. In my opinion, NAND can't be that strategic for the chip giant. It can buy parts from merchant suppliers.

If the market takes a dive again in 2010, Intel may do some soul searching again in NAND. If the market remains strong, Intel may push out that decision. But frankly, in my opinion, it's only a matter of time before NAND is history at Intel.

[subzero]

"Outside of processors, does Intel succeed anywhere?? "

Along these lines:

1. How is IBM's Personal Computer business doing these days?
2. How is IBM's printer business doing these days?
3. How is that crackerjack IBM Microelectronics business and process development doing these days?
4. How is IBM's disk drive business doing these days?
5. How is IBM's PC Operating System OS/2 Warp doing these days?

[spaarky]

Outside of processors, does Intel succeed anywhere??

Networking.

-=spaark=-