Why Intel Leads the World In Semiconductor Manufacturing

MrSeb writes "When Intel launched Ivy Bridge last week, it didn't just release a new CPU — it set a new record. By launching 22nm parts at a time when its competitors (TSMC and GlobalFoundries) are still ramping their own 32/28nm designs, Intel gave notice that it's now running a full process node ahead of the rest of the semiconductor industry. That's an unprecedented gap and a fairly recent development; the company only began pulling away from the rest of the industry in 2006, when it launched 65nm. With the help of Mark Bohr, Senior Intel Fellow and the Director of Process Architecture and Integration, this article explains how Intel has managed to pull so far ahead."

Comments

Re:Too bad their 22nm 3D failed

[dpilot]

> but that isn't Intel's fault.

Actually it is, to at least some extent. Go back a few years, when Intel was making misstep after misstep, and AMD was coming on gangbusters with K8. At that point, Intel had missed the market so badly that had they been AMD they would have gone under. They weren't AMD, they were Chipzilla. AMD enjoyed a good product cycle with K8, until Intel managed to come back. But they didn't enjoy the great product cycle they should have. Their great product cycle was turned into a merely good product cycle because Chipzilla twisted a few arms and kept K8 out of key opportunities.

The other piece of reality is that Intel combines first-rate process technology with first-rate design capability. (I say "capability" because more than once they've shown themselves to be very capable of letting their eye off the ball, design-wise.)

AMDs biggest problems have always been financing and less-than-best process technology. Bulldozer is a misstep, agreed. But it's not a misstep of the degree of Netburst or IA64. Had K8 gotten the success it deserved, AMD would have been better able to properly fund their design shop. That wouldn't have helped their process problems, however.

The simple fact is that the way things are today, Intel can afford to screw up badly, and can recover. None of their competitors can.

Re:Apple is not a semiconductor company

[rimcrazy]

Let me say a few words here as I worked in the semiconductor industry for over 28 years. So you fully understand just what it means to make a semiconductor foundry these days, here is a thought experiment for you I worked a few years back.

1) You want to build facility for manufacturing wigit.
2) That facility will cost you between 3b to 5b dollars.
3) In order to justify the ROI on that facility you need to take at least 5% total world wide market share for that wigit
4) You get to scrap your factory in 3 years.

My numbers may be a little outdated today but that only means my cost projections are too low as well as the total market share. From simply an accounting standpoint this is nuts. When I got into the business in the early 70's there were hundreds and hundreds of fabrication facilities. Every start-up had it's own fab. Today you can count the premier companies that have fabs on maybe 1 hand and the total number of significant players in the semiconductor market with their own fabs on both hands.

Intel deserves very high kudo's for what they have accomplished. The risk they take is enormous but they demonstrate time and time again what a manufacturing powerhouse they really are.