“It’s not just about the process technology,” Swan said in a phone interview, adding that, in reference to the company’s new line of Tiger Lake chips, “CPU performance, through process technology, is improved by 15% to 20% over the prior generations.”
He also argues that most of Intel’s chips are made with the 14-nanometer technique, and that the company’s 10-nanometer manufacturing technique produces chips that are equivalent to what rivals have produced with smaller transistor sizes. The core thesis around Intel stock—that its strength lies in that it both designs and makes the chips it sells—has not changed.
“We invest both in product and in manufacturing process technology,” he said. “That allows us to not share the margins with other players in the industry. We keep them all for ourselves,” he said.
Swan acknowledges that the process technology has slipped, which resulted in the two quarter delay. The Silicon Valley company CEO said engineers had discovered several defects close to the beginning of its seven-nanometer fabrication process, that the company now understands what the defects are and has a plan to fix the issue. Swan said he is still considering contracting the seven-nanometer production with another manufacturer.
www.barrons.com
The author covers semiconductor, video game, and social media stocks. Before that he was a cannabis and technology reporter.....
He also argues that most of Intel’s chips are made with the 14-nanometer technique, and that the company’s 10-nanometer manufacturing technique produces chips that are equivalent to what rivals have produced with smaller transistor sizes. The core thesis around Intel stock—that its strength lies in that it both designs and makes the chips it sells—has not changed.
“We invest both in product and in manufacturing process technology,” he said. “That allows us to not share the margins with other players in the industry. We keep them all for ourselves,” he said.
Swan acknowledges that the process technology has slipped, which resulted in the two quarter delay. The Silicon Valley company CEO said engineers had discovered several defects close to the beginning of its seven-nanometer fabrication process, that the company now understands what the defects are and has a plan to fix the issue. Swan said he is still considering contracting the seven-nanometer production with another manufacturer.
Intel Stock Is Down 16% This Year. CEO Bob Swan Shares His Strategy Going Forward.
To get the full picture of Intel, look at the company’s ability to process and package the chips into products purchased by customers, and to move data between them, CEO Bob Swan told Barron’s.
www.barrons.com
The author covers semiconductor, video game, and social media stocks. Before that he was a cannabis and technology reporter.....