Replies to post #127431 on Intel Corp (INTC)

[alan81]

I am sure Stacy and I would agree, rather than disagree. What he actually said (or implied) was:
the density improvements would offset the increased costs and maintain the gross margin level... assuming a whole bunch of other stuff.

For those interested you can see his presentation here:
http://www.intc.com/common/download/download.cfm?companyid=INTC&fileid=709360&filekey=2D44DBF8-58B8-403F-B0E8-16E114CFF0E8&filename=2013_IM_Smith.pdf

You should note that if you look at the actual graphs for 2014 you see the following:
gross margin slightly up
factory utilization slightly up
depreciation as a % of revenue is up
Average die size is down
Note that 2014 is still going to be mostly 22nm, and 22nm in 2014 is going to be cheaper than 22nm in 2013.
Alan