Intel's CEO Paul Otellini Talks Tech, Strategy and Future Directions: Part 2
February 26, 2009 7:30 AM
comment(s) - last by
More on Atom, 32nm, NAND, smartphones, SSDs, SoC, Larabee, AMD, NVIDIA, TSMC, Android, ASUS, Acer, and those "Mubadala guys"
Paul Otellini, the President and Chief Executive Officer of Intel, addressed a lunchtime crowd at the Goldman Sachs Technology & Internet Conference in San Francisco yesterday. Part 1 of this article can be found
Intel's strategy for Atom processors has always been to leverage its manufacturing strength. As new process geometries are developed, more transistors become available for use. Intel has always been able to integrate more functionality into its CPUs this way, and
will continue to do so with memory controllers and graphics
. Paul Otellini stated, "Instead of building performance, we are building integration".
AMD has recognized this fact, and did something about it by acquiring ATI. Otellini was critical of NVIDIA and its attempt to stick with the status quo. He mentioned the x86 compatibility of
, Intel's many-core graphics product, as being a programming strength when it launches.
The P1269 32nm process is optimized specifically for System on Chip designs, and will enable a new generation of Mobile Internet Devices and smartphones. While 45nm is good,
32nm will enable Intel
to get out of MID sizes with Atom and into smaller sizes for smartphones.
Otellini was particularly excited with this development, stating that "The majority of Intel's products in 5 years will be SoC". He also added, "The battle for smartphones will be fought first with netbooks".
"We all ride the Law," he said, referring to Moore's Law. Other companies do it as well, but Intel does it better.
Answering a question in regards to the future competitiveness of AMD, Mr. Otellini replied that "The Mubadala guys will want a return on their investment", referring to the
purchase of shares by Mubadala Development and "The Foundry Company" spinoff
with the Advanced Technology Investment Corporation, both owned by the Emirate of Abu Dhabi. Since the current agreement is for a cost plus contract, AMD's costs will inevitably go up.
It will either mean their prices will go up or their margins will go down. This affects their ability to compete on price, which is the only advantage they have right now. There is no way their production costs will go down.
Intel may provide limited foundry services to Sony, TI, and other companies going asset light. It may offer wafer services and semi-custom cores to some key customers, but Intel won't be competing with TSMC.
Mr. Otellini disclosed that NAND will be an important platform feature in terms of power management and cache. However,
NAND itself is not an important product for Intel
, and if it makes sense to purchase from another source rather than its IM Flash Technologies joint venture, they are prepared to do so. "NAND in the platform is strategic, NAND as a business for Intel isn't".
Intel is pleased with its momentum in SSDs, and will be moving to the high end as soon as possible with NAND flash.
LG and Intel announced MIDs and smartphones
based on the Moorestown platform. Otellini said there would be more Tier 1 OEM wins that will be announced in the near future. Intel will make also make an announcement about licensing 3G technologies soon.
"The limit for smartphones isn't hardware, it's software", Otellini said, explaining that ARM processors are different depending on who makes it. "It's not like the PC where you have a (software) ecosystem to support it".
Intel is still working on its
open-source project, optimized for Atom in netbooks and MIDs. Mr. Otellini also revealed that there are a lot of Intel customers working on netbooks using Google's Android operating system. He joked, "Vista runs on Atom, ...It's just no one uses it".
This article is over a month old, voting and posting comments is disabled
2/26/2009 5:56:51 PM
Intel's primary strength isn't in design, it's in manufacturing (another upcoming article).
Having control of your own fabs is critical for Intel, as it allows them to bring out a new process quickly and ramp it up internally without having to give up control to someone else.
AMD knows this, and will sacrifice future margins in order to survive their crushing debt load.
Sure, sometimes outsourcing can save money. But if someone else can make it cheaper and better than you, and you allow them to do that for you, then you are no longer a semiconductor company. You are now a design company.
AMD is going halfway by maintaining partial ownership, ensuring that they will have manufacturing priority.
Please read the following amazing article:
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
Intel's CEO Paul Otellini Talks Tech, Strategy and Future Directions: Part 1
February 26, 2009, 7:20 AM
ONFI Still Missing Some Key Players in NAND Flash Market
February 24, 2009, 9:36 AM
AMD Shareholders Vote to Allow "The Foundry Company" Spin Off
February 18, 2009, 5:20 PM
LG MID and Smartphone Based on Intel "Moorestown" Coming in 2010
February 16, 2009, 10:30 AM
Intel Replaces "Havendale" and "Auburndale" With 32nm Die Shrinks
February 10, 2009, 3:27 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
IBM Workers Strike Over Terms of Deal That Will Have Them Working for Lenovo
March 6, 2014, 9:29 AM
Google Picking Up Artificial Intelligence Company "DeepMind" for $400 Million
January 27, 2014, 9:25 AM
Quick Note: Qualcomm Grabs up Palm, IPAQ, and Bitfone Patent Portfolio from HP
January 24, 2014, 9:18 AM
Verizon Buys Intel Media OnCue Cloud TV assets
January 21, 2014, 10:26 AM
Most Popular Articles
New Photos Show “Assembled” iPhone 6, Protruding Camera Ring
August 20, 2014, 2:32 PM
Leaked Qualcomm Roadmap: 20 nm 64-bit Octacore Smartphone SoCs Cometh
August 20, 2014, 11:38 AM
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information