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Intel admitted that the rejection of monolithic crystals will reduce the cost of production
Intel CEO Robert Swan represented Intel at Credit Suisse’s virtual conference this week, and his talk could be given a little more attention. Speaking about layout solutions, the head of Intel admits that the use of chiplets can reduce the cost of production.
Image source: Intel
For rival company AMD, this has become an indisputable thesis since the creation of the first EPYC and Ryzen processors, the company even conducted a comparative analysis of the potential costs in options with a monolithic processor crystal and using chiplets. In the case of 32-core EPYC, the savings were twofold, and AMD could not create a 64-core processor with a monolithic crystal at all.
Robert Swan began his reasoning about the choice of processor layout by stating that customers, no matter how Intel products are made, are more important for them to increase the rhythm of performance as new generations of processors are released. Intel begins to designate multichip layout everywhere with the characteristic phrase “disaggregated design”, which roughly means “separate layout”.
It, according to Swan, not only provides flexibility in the design of a wide range of products, but also allows you to achieve high volumes of production with lower costs. It is enough to recall Intel’s recent history of undercapacity to understand why the company believes in the potential of multichip products. As soon as it became clear that the 10nm process was being delayed, Intel’s pipeline began to fill up with 14nm processors with an ever-increasing die area. This not only increased the unit cost, but also reduced the total production of processors. Small crystals can be produced in large quantities, allowing for faster time-to-market for new products.
Intel will be more active in engaging contractors for the production of some of the crystals of such composite products. At the same time, the company’s profit margin may decrease slightly, since it is not as profitable to pay a contractor as it is to produce a product on its own. For this reason, Intel will carefully analyze the economic impact of each decision to place orders on the assembly line of other companies. If we talk about the range of products preparing for release in 2023, Intel plans to decide on the location of their production in January next year. In this context, we mean mainly 7nm products, some of which will be produced by contractors.