Intel Redefines Itself, Expands Contract Manufacturing

As part of its effort to redefine itself, Intel has decided to provide contract manufacturing to all takers. Previously, it would only manufacture for selected clients.

During an investor meeting in Santa Clara, Calif., on Thursday, CEO Brian Krzanich said that the company was prepared to focus "on a much broader set of customers." Until this change, Intel's advanced manufacturing was offered only to such chosen customers as Altera and Netronome, which develop field-programmable gate arrays.

Because of the slackened demand for PCs, Intel has been left with extra capacity in its factories, so it is now looking to enter the contract manufacturing market occupied by such companies as Taiwan Semiconductor and GlobalFoundries.

'Better Than Anyone Else'

Intel's contract manufacturing is only a small portion of its revenue, but its expansion could help the company in its aim to play a bigger role in developing chips and other technology for smartphones and tablets. If the company can make chips for mobile devices that help to cut down the market share of mobile chips manufactured by Qualcomm and Samsung, the contract manufacturing move could expand revenues, employ unused capacity and create competition for its rivals.

According to Reuters, Krzanich said that anyone "who can use our leading edge and build computing capabilities that are better than anyone else's -- those are good candidates for our foundry service."

Intel has also said that it is developing a phone processor, currently named SoFIA, that will offer 3G and HSPA+ and will be manufactured at a non-Intel facility.

Meanwhile, Intel is moving forward on other fronts as well, including three temporary retail stores that will open for the holiday period. The stores -- in the Manhattan borough of New York, in Chicago and in Venice, Calif. -- will feature products employing Intel technology. That's a big slice of the PC...

Comments are closed.