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No word on made-in-Asia 32nm Intel chips

Vivian Yeo ZDNet Asia | February 11, 2009 4:41 AM PST

Summary

Intel said it would manufacture 32-nanometer chips in the U.S. but it is not clear if the chipmaker has plans to invest in similar capabilities in Asia.
Intel has pledged to suit up its manufacturing facilities in the United States to support 32-nanometer processing, but it is not clear if the chipmaker has plans to invest in similar capabilities in Asia.

In a telephone briefing with regional media Wednesday, Stephen Smith, Intel's vice president and director of digital enterprise group operations, reiterated the company's roadmap, including its plans to roll out the first processors based on 32-nm technology by the fourth quarter of 2009.

The chip manufacturer demonstrated its first working 32nm silicon on Tuesday in the United States. Intel CEO Paul Otellini also announced Tuesday that the company would invest US$7 billion into four existing plants in the United States and equip them with capabilities to manufacture silicon wafers based on 32nm-processing technology.

Smith told ZDNet Asia that Intel made a number of investments in the Asia-Pacific region over the last two years, including large assembly and test facilities in Vietnam and China, and the company's first wafer fab in Asia, located in Dalian, China.

"Most of our effort in terms of growth [and] R&D (research and development) headcount is focused on some of these emerging markets and we'll continue to see that over the next few years," he noted. The executive, however, did not indicate specifically if the Dalian site would be involved in the production of 32nm processors.

Some investment cuts
But, Intel has made some cutbacks amid its investments in the region. Last month, it announced plans to close the company's assembly and test facilities in Malaysia and the Philippines, a move that is expected to impact 3,000 staff.

Earlier this month, Intel also announced it would shut an assembly and test plant in Shanghai over the next 12 months. China Daily reported that the chipmaker is arranging for the 2,000 affected workers to be re-deployed to Chengdu, Dalian or to its other operations in the country.

In IDC's fourth quarter and full-year 2008 report for the PC processor market, Intel made slight gains in market share during the final quarter of 2008, bringing its full-year market share to 80.3 percent. AMD's share of the processor market in 2008 dipped by 3.1 percent to 19.2 percent.

According to IDC, worldwide PC processor unit shipments declined 17.0 percent quarter-on-quarter and 11.4 percent year-on-year. In terms of revenue, this market saw a drop of 18 percent over the third quarter, and 22.2 percent over 2007. Total PC processor unit shipments for full-year 2008 grew 10 percent, while revenues grew 0.9 percent to US$30.8 billion.

The market analyst also predicted that processor shipments will continue to decline sequentially in the first two quarters of this year, despite efforts made in the supply chain to avoid excess inventories.

Talkback Most Recent of 5 Talkback(s)

  • "No word on made-in-Asia 32nm Intel chips"
    Good...let's hope it stays that way, and Intel continues to spend its money in the US.

    Afterall, it is an American company, and should be investing in this country.
    ZDNet Gravatar
    IT_Guy_z
    11th Feb 2009
  • everything is for US
    be sure, even if they invest in Asia, or even in Mars, its the US that will be benefited not those poor labors.
    ZDNet Gravatar
    abasaleh.reza@...
    11th Feb 2009
  • everything is for US?
    Wrong - the US doesn't benefit, Intel does and so do those laborers. The US government has opened trade and reduced tariffs because it understands the advantages of global commerce for all people involved. Those "poor laborers" in Asia and other developing regions have been provided jobs and received training as a result of foreign investment. Economies grow through such investment and wages increase as a result. Answer me this: Would those laborers be better off if Intel closed up shop in Asia?
    ZDNet Gravatar
    Reply_account
    11th Feb 2009
  • RE: No word on made-in-Asia 32nm Intel chips
    Yea, those poor laborers who otherwise would starve.
    ZDNet Gravatar
    hellospam9
    11th Feb 2009
  • RE: No word on made-in-Asia 32nm Intel chips
    There's that, of course. You have also to remember that Intel sells its chips all over the world. Trade barriers erected by the US will cause similar trade barriers erected around the world, and will hurt all multinational corporations, most of which are American.

    Setting shop overseas keeps costs low, allowing Intel to make $$ and add to its bottom line. That bottom line shows up as dividends on wall street, where most, if not all of Intel stock is listed. America and americans probably make more money overall by allowing Intel to have higher operating margins by manufacturing outside the US (no data to back this up, but it's possible, and likely). All the profits are channeled back into the US economy.

    America and its corporations didn't push for globalization for the greater common good of humanity. While that may well be the byproduct of this, the immediate interest was, and still is $$. There's a lot of money to be made for Intel/MS/Apple in emerging markets where PC penetration is low to non-existent. Opening up the US market and promoting other countries to open up theirs can potentially result in net gains for the US, which is why the US promoted it so. Of course, it's not going to be a one-way street. The question is if the US is competitive enough to be net positive.
    ZDNet Gravatar
    Aw1234
    11th Feb 2009

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