Intel move aimed at competitiveness: experts
The China Post news staffTAIPEI, Taiwan -- The move by Intel to raise its capital expenditure this year is seen as a way for the chip giant to boost its competitiveness against Taiwan Semiconductor Manufacturing Co. (TSMC) in the area of high-end chip production, said experts yesterday.
January 22, 2013, 4:17 pm TWN
They made the remarks after Intel announced an increase of its 2013 capital expenditure to US$13 billion, a year-on-year hike of 18 percent and higher than the US$10 billion originally expected by the market.
Last week, TSMC said in its investors' conference that it will raise capital expenditure to US$9 billion this year to expand high-end production. During the meeting TSMC also mapped out its technological strategy, saying the firm will next year begin 20-nanometer production, whose first-year production value will exceed that for 28-nm in its first year.
Besides 20-nm, TSMC has also drawn plans for its 16-nm and 10-nm technology. Collaboration with ASML is also ongoing, indicating TSMC will enter 450-millimeter wafer manufacturing.
To keep its competitive edge over TSMC, Intel has raised its capital expenditure, which will be used to construct 450-mm plants, set up 14-nm capacity and do research and development on 10-nm, experts said.
J. P. Morgan, meanwhile, said the increased capital expenditure will be devoted to 450-mm plant construction and enhancement of Intel's competitiveness in the tablet PC sector. According to J. P. Morgan, the increased spending will produce minimal impact on contract chipmakers.
TSMC yesterday closed at NT$100.5, down 0.99 percent.