Linked by Thom Holwerda on Mon 2nd Mar 2009 19:49 UTC
Intel The Atom processor, the only bright spot on Intel's balance sheet, will soon no longer be manufactured by Intel itself (CNet has more). Intel has signed an agreement with the Taiwan Semiconductor Manufacturing Company (TSMC), outsourcing the production of the successful chip to Taiwan. While it's not the first time Intel outsources production of its silicon, it is still an unusual move for the company to outsource the production of such a major chip.
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Really unusual / relevant?
by Ford Prefect on Mon 2nd Mar 2009 20:50 UTC
Ford Prefect
Member since:

I don't see anything special here.

Intel's main market are still server, desktop processors and more powerfull mobile processors.

Outsourcing Atom means for them that they don't have to build necessary fabs for a larger quantity themselves. If the netbook hype somewhat diminishes or they fail to get into smaller devices, they just don't order anymore.

It may be that Netbooks are in the talks everywhere, but still Atom is not *that* an important processor to Intel. From the article refered to in the earlier story:
Intel recorded revenue of $8.2 billion
Atom [...] pulled in $300 million in revenue

That's 3.7%.

Edited 2009-03-02 20:56 UTC

Reply Score: 3

RE: Really unusual / relevant?
by Luminair on Tue 3rd Mar 2009 03:03 in reply to "Really unusual / relevant?"
Luminair Member since:

haha you don't see anything special? you are rebounding too hard against the article. there is a lot special about this whole situation.

Reply Parent Score: 3

Ford Prefect Member since:

Yeah I'm wondering about this, seriously. Everybody is talking about the netbook market, but really. It is some gadget some people want to have and can afford. A clever way of creating an entirely new market. But this market will be repleted very quickly.

And about even smaller devices: Intel still has a lot of work to do. Ok I understand the idea of packing atom into a SoC design. Current implications? It will take them quite some time for the first prototype..

Reply Parent Score: 2

RE: Really unusual / relevant?
by spiderman on Tue 3rd Mar 2009 06:31 in reply to "Really unusual / relevant?"
spiderman Member since:

bla bla bla core business bla bla bla cooperation.
It is all about the price. Taiwanese workers cost less and their margin is not high enough on the atom. Some guys in their suit said they want more billions.

Reply Parent Score: 3