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Most alive: 14nm process technology will continue to dominate Intel chips next year
Intel’s success in mass production of 10nm products was expressed not only in an increase in production volumes by 30% by the end of the third quarter. Many of the 10nm products to be announced next year have already started shipping as engineering samples. Against this background, the recognition of the head of Intel about the predominance of 14-nm products in the supply structure of the next year remained almost unnoticed.
Image source: Intel
Intel representatives attribute the increased costs characteristic of the initial period of technological migration to the disadvantages of the rapid transition to 10nm technology. They undermine the company’s operating profit, which was also observed in the third quarter. Next year, as explained by Robert Swan, a significant portion of Intel’s products will continue to be manufactured using 14nm technology. The head of the company found its advantages in this: the equipment for the production of 14-nm products either paid for itself long ago, or will do it next year. Accordingly, Intel’s production costs have a positive effect on such “longevity”.
In an increasingly competitive environment, this is important. Speaking about the rivalry with AMD, the head of Intel admitted that the confrontation intensified in the second half of the year, but nothing happened that the processor giant was not ready for. In short, the situation developed in line with Intel’s expectations. If at the same time we can talk about pressure from AMD, then it is more felt not by the price, but by the structure of the product range.
Apparently, in this context, Intel representatives mean the company’s weak position in the segment of processors with a small number of cores, which are now in demand in the mobile sector due to the increased demand for inexpensive laptops for students. But even in this segment of the market, Intel expects to regain some of the lost positions before the end of this year. The company could have supplied more of these processors as demand allowed it, but it was limited in production capabilities, as Robert Swan admitted.
Intel’s desire to rely mainly on the 14nm process technology in 2021 speaks of another nuance – the announcement of consumer Rocket Lake processors with the Willow Cove architecture of computing cores adapted to the specifics of 14nm technology is scheduled for the first quarter. At the quarterly conference, these processors were not mentioned either in the presentation materials or in the comments of Intel representatives. And yet, the dominance of 14nm products will clearly be carried out with their direct participation, therefore, Intel management is trying not to emphasize this fact, which is not quite convenient for mentioning to investors.