Intel Corporation (NASDAQ:INTC) – Time to make the intelligent switch
Intel Corporation (NASDAQ:INTC) has been eyeing Micron’s Kiryat Gat plant. The micro-chip giant feels that the plant is an ideal location of a 10-nanometer chip-fabrication plant. However, by the looks of it, the sell is not going to be easy at all.
The other bidder for the plant is TowerJazz Semiconductor. The Micron workers have been demonstrating outside the microchip plant. Brian Krzanich the INTC CEO said that he and the company are committed to the Intel Israel operations.
In 1999, Intel built this factory to produce the Pentium microprocessor (which had just been launched around that time). It happens to be one of the oldest microchip plants in Israel. In 2010 February, Micron bought the company that had taken control of the Kiryat Gat facility, Numonyx. As part of the deal, it acquired the facility as well.
Intel came to the fore of the PC market by manufacturing the most advanced microchips in the world. It started producing processors that performed at higher levels at a per unit cost that was much lower. That was the need of the hour when PC’s were the only means of accessing the internet. The launch of tablets and smartphones meant that cutting-edge computing functions were not really necessary.
Today, these devices have been eating into the sales of PC’s and Intel’s investors are definitely not sleeping well with the thought that Intel does not have the same hold on the market that it had a decade ago. Fact is that in the mobile devices market, Intel is running way behind its rivals.
The next two years are going to be a testing period. Intel now intends to manufacture the most advanced mobile-processors in the world. They will be as minute as 22 nanometers and their launch is slated to take place as early as this year. It will then transition to selling mobile chips in 2014. These chips will be made with the 14-nanometer process. Intel has been selling mobile chips for a while now but the first lot of Intel-powered smartphones made an appearance on shelves only in 2012. Companies such as Qualcomm have been making ARM-based designs that are more power-efficient. Intel Corporation (NASDAQ:INTC) will have to wake up to the fact that being Intel is not enough for them any longer. It re-invention time!