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Intel (INTC) is "engaged in intensive negotiations" with the Israeli government about investing...

Intel (INTC) is "engaged in intensive negotiations" with the Israeli government about investing an additional ~$10B in the country, says a government official. $7B would be spent over 10 years to build a new fab in the town of Kiryat Gat, and $3B would be spent to upgrade Intel's existing Kiryat Gat fab. Intel, which continues to spend heavily on capex, has invested $10.5B in Israel over the last 10 years, and has received $1.3B in government grants. The chip giant also wants to take over a local Micron (MU) fab that's due to be shuttered.
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Comments (9)
  • Rose_Colored_Glasses
    , contributor
    Comments (955) | Send Message
     
    I will say this about INTC - these dudes are not afraid to invest. They bring their "cajones" to CAPEX meetings in a dump truck.
    2 Jul 2013, 09:46 AM Reply Like
  • witch doctor 703
    , contributor
    Comments (35) | Send Message
     
    Your absolutely right. Big "cajones". My guess they are planning on making a lot of chips! Since they pretty much own the server and PC market. Looks like tablets and mobile my guess especially in light of the low power 4th generation. I very strongly suspect that by 2015 Intel have very large share of both of those markets. The OEM fabs are struggling with 28nm stuff now. They would have to be spending capex now to built fabs that cab hand 14nm and 10nm chips. They are going to be two generations behind and probably will never catch up.
    2 Jul 2013, 10:39 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2273) | Send Message
     
    Anyone else notice that a lot of company roadmaps include 20nm in 2014? And all for companies fabbing at TSMC?

     

    I'm not certain INTC has as large of a lead as we think, but I do think they have a performance and power efficiency lead. I don't think they'd be building new fabs if they weren't VERY serious about taking on mobile. Look out competitors! Even if they hold their ground, the uncertainty of INTC coming at them will hammer their share prices down.

     

    And as a backup plan... imagine if INTC became a hybrid company, willing to outsource fabbing like TSMC? They'd drop QCOM as a competitor and instead fab for them, taking a piece of their pie. Who wouldn't want to utilize INTC's process node advantage? Low power consumption and lower manufacturing costs are a good thing! Meanwhile, since no other company can combat them in high performance server/desktop chips, their market share there remains in tact. Mobile chips are rather low margin compared to what INTC is used to, so if they aren't catching on quickly enough, this is yet another way for them to win.

     

    I see long term (1-3 years) INTC upside as extremely high probability.
    2 Jul 2013, 11:13 AM Reply Like
  • chrisgar
    , contributor
    Comments (49) | Send Message
     
    Intel's node is 22nm -- right ?

     

    2 Jul 2013, 02:57 PM Reply Like
  • SSnyde2
    , contributor
    Comments (12) | Send Message
     
    Not all nodes are created equal. Intel's 32nm node is "equivalent" to TSMC's 28nm node. In fact Intel's 32nm node is better than TSMC's 28nm node (reliability and cost). Their 20nm node is Intel's 22nm node. Which is the current Intel node. A simple Google search will demonstrate this to you.
    2 Jul 2013, 04:59 PM Reply Like
  • pfifla1
    , contributor
    Comments (509) | Send Message
     
    As the old saying goes goes; You got to spend money to make money! Intel has the money and is investing wisely in upgrading Fabs. I wish the US was more business friendly like Israel, they really do understand what it takes to grow businesses! And Intel was genius for recognizing the wealth of talent in that country!.
    2 Jul 2013, 11:05 AM Reply Like
  • jvig
    , contributor
    Comments (27) | Send Message
     
    Yup! Israel has more engineers and scientists per capita than any other country in the world.
    2 Jul 2013, 01:27 PM Reply Like
  • SSnyde2
    , contributor
    Comments (12) | Send Message
     
    Not to take away from Israel, but Intel invests even more heavily in manufacturing in the US. The Oregon and Arizona sites all have had good investments made to them recently.

     

    Most important thing to Intel right now in the US is to pass the immigration bill that increases the amount of H1B visas from 65k per year to 110k per year. This is a big deal for attracting and retaining the top engineering talent in the world.
    2 Jul 2013, 04:59 PM Reply Like
  • rasanders22
    , contributor
    Comments (544) | Send Message
     
    If you go to a job fair at Arizon State University and walk by the Intel booth, you will see 5-7 lines, each about 20 people deep waiting for a chance to talk to a hiring rep.
    2 Jul 2013, 10:06 PM Reply Like
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