The long struggle of Intel with the method of manufacturing 10 nm may finally be over. Last week, the company told investors that its 10 nm yield is ahead of both clients ‘ plans. And products from the data center — and it also brings online a new 10 nm production facility. All 10 nm parts are presently produced in two plants of the company: Hillsboro, Oregon, and Kiryat Gat, Israel. But beginning next half, 10 nm parts will also be provided at Intel’s manufacturing facility in Chandler, Arizona.
What we find more interesting than the 10 nm turnaround is that the transition away from being a CPU corporation still seems to be dangerous for Intel While referring to your computer’s CPU, the company sees more opportunities in processing, technology, networking, AI and data center investments. This certainly does not mean Intel plans to leave the business of the product and server CPU, but it does announce a significant shift in the overall focus of the company. The company would estimate the TAM of its mainstream PC and server CPU line at $52 billion, or the total profit if practically every potential customer bought an Intel device. Nevertheless, in what it terms “data-centered” products in the data center, Internet of Things, and networking market segments, it sees an additional $220 billion TAM opportunity.
It means the company intends to keep making the most significant investments in areas such as processing of Optane, development of Artificial Intelligence equipment, 5 G modems, networking of data centers, and more. The slide that drives this commitment home comes from Q2’s investor meeting that clearly shows the company moving from a “protect and defend” approach to a viable strategy. If this slide were in a deals meeting, it wouldn’t say much — but if it were presented to the shareholders of the company, it would achieve some gravitas. Most of this was declared at the company’s investor meeting in May 2019, but last week’s Q3 meeting Continues and enhances this narrative for Intel’s future growth, with slides more focused on the market growth for Optane, network, and IoT / Edge than conventional PC and server markets.