TSMC May Surpass Intel In Quarterly Revenue For First Time (theregister.com) 9
Wall Street analysts estimate TSMC will grow second-quarter revenue 43 percent quarter-over-quarter to $18.1 billion. Intel, on the other hand, is expected to see sales decline 2 percent sequentially to $17.98 billion in the same period, according to estimates collected by Yahoo Finance. The Register reports: The potential for TSMC to surpass Intel in quarterly revenue is indicative of how demand has grown for contract chip manufacturing, fueled by companies like Qualcomm, Nvidia, AMD, and Apple who design their own chips and outsource manufacturing to foundries like TSMC. This trend has created a quandary for Intel. The semiconductor giant has traditionally manufactured the chips it designs as part of its integrated device manufacturing model but the company is now increasingly reliant on TSMC and other foundries for certain components, while expanding its own manufacturing capacity in the West.
The kicker is that Intel plans to use this increased capacity to produce more of its own chips while also supporting its revitalized foundry business, which hopes to take business from TSMC and South Korea's Samsung, the industry's other leading-edge chipmaker, in the future. This new strategy by Intel is called IDM 2.0, and it means the chipmaker will have to juggle two somewhat conflicting objectives:
- taking foundry market share away from TSMC and Samsung by convincing various fabless chip designers to use its plants;
- and using leading-edge nodes from TSMC and Samsung for certain components to compete with fabless companies like AMD and Nvidia. "Samsung has already surpassed Intel as the largest semiconductor company by revenue, so TSMC potentially growing larger than the x86 giant further underscores the tentative position Intel is in," concludes the report.
The kicker is that Intel plans to use this increased capacity to produce more of its own chips while also supporting its revitalized foundry business, which hopes to take business from TSMC and South Korea's Samsung, the industry's other leading-edge chipmaker, in the future. This new strategy by Intel is called IDM 2.0, and it means the chipmaker will have to juggle two somewhat conflicting objectives:
- taking foundry market share away from TSMC and Samsung by convincing various fabless chip designers to use its plants;
- and using leading-edge nodes from TSMC and Samsung for certain components to compete with fabless companies like AMD and Nvidia. "Samsung has already surpassed Intel as the largest semiconductor company by revenue, so TSMC potentially growing larger than the x86 giant further underscores the tentative position Intel is in," concludes the report.
Re: Windfall profits tax NOW (Score:2)
They reinvest it back into semiconductors. If they didnâ(TM)t make these kind of profits they would put their money elsewhere instead of risking it in the semiconductor business which had wild swings. How much would YOU put in a lottery ticket if there was a chance you would lose your money?
Re: (Score:2)
The RoC will get right on that.
Perhaps Intel should close up shop (Score:2)
And give the money back to the investors.
Re:Perhaps Intel should close up shop (Score:4, Insightful)
I think that's the problem already - a lot of the revenue isn't re-invested but instead paid out as bonuses and to the shareholders.
This and the patent litigations that are all over the place in the US are why other countries have surpassed the US during the last 50 years.
It was bound to happen (Score:3, Interesting)
There's more collective demand for "chips" than just what Intel makes. I'm glad they're planning to diversify and build plants in the US. Intel still has a lot of life left in it and maybe we'll actually see some healthy competition now.
When they say Samsung surpassed Intel.... (Score:3)
Re: (Score:2)
Awesome! (Score:2)
fuck Intel.