Intel accelerates Itanium schedule, announces $1B in quarterly profit

Asher · January 16, 2003, 02:30

Lots of interesting Intel news over the past couple of days.

First, they've really accelerated their Itanium (IA-64) roadmap. The first dual-core (physically two processors in one) chip was originally scheduled for 2007, but was bumped up to 2005. They've also added a new chip for 2004 release (with 9MB of L3 cache -- the 6MB version is due out this summer). The story: http://news.com.com/2100-1001-980898.html?tag=fd_top

Second, they've announced some very encouraging financial numbers. They made $1B in net profit in Q4 2002 (this includes acquisition costs, it was $1.1B prior to those costs). This is 16 cents per share. At the same time, they've announced next year they're going to curb their (massive) capital spending budget to between $3.5B and $3.7B (down ~$1B or so) as they upgrade fabrication plants and build new ones. Particularly impressive is how far their costs of production for each chip have dropped. They've also managed to gain even higher marketshare from AMD in Q4. The story: http://news.com.com/2100-1001-980610.html

Thirdly, and much more technical (and therefore interesting), is Intel's update on their process technology. Intel's strategy over the past couple of years is to go gung-ho on capital spending, spending billions of dollars on upgrading their fab plants and process technology because they knew their competitors wouldn't be able to do that in an economic slump. Intel's been producing 0.13 micron chips for a long time now (8 months?), and AMD has been having some major problems with it by comparison (they've only been mass-producing chips on 0.13 for a couple months).

Intel plans to migrate to 0.09 micron in the second half of this year when they launch the Pentium 5 (Prescott), and AMD won't move there until 2004 sometime at the very earliest. Probably more like Q2 2004.

But it's already making great progress on the 0.065 micron process! It's announced it's already started making the 0.065 masks (which are used to fabricate the chip) and expects production of consumer 0.065 parts in 2005. That's a magic date.

It now looks pretty much guaranteed that IBM, Sony, and Toshiba will be stuck with the 0.09 process for the next generation of video game consoles to work with, while MS now has access to 0.065. That means MS will be able to make its chips smaller, faster, cooler, and cheaper. That could make a very big difference economically and in terms of console power.

0.045 is expected to be rolled out in 2007.

The story is here: http://www.siliconstrategies.com/story/OEG20030115S0048
I found it to be a great article.

Technology is so interesting these days.

Ted Striker · January 16, 2003, 02:34

How is Intel keeping their chips so cool though Ash?

I mean they keep fitting more stuff onto each chip but they aren't melting...thoughts? I know that the chips have alot of overhead space in them but what else? Materials?

Asher · January 16, 2003, 02:38

Quote:

Originally posted by Ted Striker
How is Intel keeping their chips so cool though Ash?

I mean they keep fitting more stuff onto each chip but they aren't melting...thoughts? I know that the chips have alot of overhead space in them but what else? Materials?

The Pentium 4s actually run pretty damn hot under high loads, but they idle much lower and average much lower than the Athlons.

It's mostly the simple stuff...like Pentium 4's have heatspreaders and Athlon XP's don't.

One of the main reasons theirs chips can stay so cool is by their process advantage. Intel's process is quite a bit more advanced than AMD's, which makes the chips have higher yields and clock higher and run cooler, in general.

I, for one, am really looking forward to Banias (or Centrino or something as it's now officially called). It's that chip Intel designed that's apparently a totally new core (not P4 derived) and is for the mobile market. It's ultra-low voltage, high performance, small, and quite cool.

They're also making a chip that combines a processor, RAM, and communications chip in one...for use in embedded devices like cellphones.

Edit: BBUL (a new packaging technique) will also help Intel scale up clockspeed, avoiding lots of pitfalls the current FC-PGA chips that Intel and AMD use. It's really cool

http://www.anandtech.com/cpu/showdoc.html?i=1542&p=1

Az · January 16, 2003, 04:37

good, Maybe they'll open another chip plant in Israel. So far we've got 3 Intel centers in Israel, making them our no.2 exporter. ( one chip plant, and two research centers, IIRC )

Asher · January 16, 2003, 04:44

The Banias (Centrino) mobile chip was designed in Israel.

Apparently almost all the employees there are American though.

Az · January 16, 2003, 06:53

No, I am rather certain that this is not true. I've been to the haifa research center on a school trip at the time, and a couple of my friends worked there, so I don't think so.

Besides, why would they ship americans to Israel?

MRT144 · January 16, 2003, 06:59

secret agents

Az · January 16, 2003, 07:06

No these are the israeli engineers in the US.

Skanky Burns · January 16, 2003, 07:29

Interesting.

Wraith · January 16, 2003, 09:45

--"First, they've really accelerated their Itanium (IA-64) roadmap."

Interesting. I'm going to have to look into this one more. Has some interesting implications, especially the dual core ones. That sucker is going to be hot (as in temperature). It'll be interesting to see the power dissipation estimates on it.

--"Second, they've announced some very encouraging financial numbers."

Take them with a grian of salt. Intel's finances are pretty fishy for the post-Enron era.

Their process technology plans have been known for a while now. Nothing really new there.

--"How is Intel keeping their chips so cool though Ash?"

Requiring ever greater levels of cooling in the case. The heatsink/fan requirements on the latest P4s are rather high, and they do need to be. It's been amusing to see some of Intel's steps for the future, since it looks like they're hitting the heat limits for their current process. They've managed to bump things up to handle 120 C, but that's barely going to carry them until they can transition to the new process (heat problems are certainly part of the reason for trying to accellerate this).

--"It's mostly the simple stuff...like Pentium 4's have heatspreaders and Athlon XP's don't."

That's actually a negative on the P4s as far as thermal conductivity goes. Adding another layer of material means less heat is dissipated, not more. This is just basic thermodynamics.
The heatspreaders are liked because they prevent chip damange during the heatsink installation.

--"I, for one, am really looking forward to Banias "

Yeah, Centrino's the official name. Don't like the name much, but it might make a really nice (and quiet) multimedia PC when it's out.

Wraith
"Computer! Take me to the weasels!"
-- Zim ("Invader Zim")

Az · January 16, 2003, 09:53

hey, maybe they should place a radiator inside.

monolith94 · January 16, 2003, 11:38

Just so long as I get to play Deus Ex 2 in the future, I don't really care what happens otherwise.

MRT144 · January 16, 2003, 11:44

so is apple really gonna start using intels?

monolith94 · January 16, 2003, 11:47

The latest rumors now are they plan on using IBM's hotshot chip.
Whatever it is though, one thing's for sure - Motorola better shape up or ship out.

monolith94 · January 16, 2003, 11:53

Much like leisure suit larry