"I think the foundry business is in big trouble over the next few years," Otellini told analysts at a conference here Thursday (Feb. 17) and accessed by EE Times by a telephone replay. He put it down to "significant overcapacity" mainly due to attempts to grab market share by new player Globalfoundries Inc. (Sunnyvale, Calif.). On Friday in Hillsboro, Oregon, Otellini said Intel would build a wafer fab in Arizona and create 4,000 U.S. jobs in 2011.More info at EE Times.
...
"Leading-edge capacity excess, driven by Globalfoundries' expansion primarily, means pricing is going to come down. As leading-edge pricing comes down, so does the trailing-edge [pricing], hollowing out the business. That means real trouble for Globalfoundries and TSMC over the next few years," Otellini predicted. He conceded that with its memory and logic operations Samsung was a different case.
Intel: Foundry business getting too crowded
Posted on Sunday, February 20 2011 @ 19:34 CET by Thomas De Maesschalck