Monday, October 22nd 2018

Intel Ropes in Vietnam and Ireland to Increase Processor Volumes

Intel late last week released a PCN (product change notification), which stated that it has assigned its manufacturing facilities in Vietnam as an "additional site for test and finish." This would entail final quality assurance testing of its nearly-ready products and "finishing," which involves final retail packaging. The Intel facility in Vietnam will work in concert with its largest Asian manufacturing facility, located in Malaysia. "While Assembly, Test and Finish will continue to be done in PGAT (Malaysia), Intel will also have assembled material sent to VNAT (Vietnam) to perform the Test/Finish portions of the manufacturing process. Please note that Vietnam has been certified equivalent (form, fit, function, and reliability) for the affected products and technologies of this change," the PCN reads.

The products named in the PCN are the company's new flagship MSDT processor, the 8-core/16-thread Core i9-9900K, the second-best 8-core/8-thread Core i7-9700K, and the 6-core/-6-thread Core i5-9600K. "Fab, Sort and Assembly Test Manufacturing follow a philosophy, enables delivery of product from multiple production sites, which operate as a virtual factory that performs consistently and independent of the manufacturing source site. Additional benefits include faster production ramps that improve product availability and improved consistency to quality performance," it concludes. Intel had, earlier this year, raised its capital expenditure by an additional $1 billion YoY to around $16 billion, in a bid to increase its volumes as the industry faces supply shortages from Intel, which the company claims is due to "increased demand," rather than a short-supply. Intel has also roped in its small foundry located in Leixlip, Ireland.
According to Irish publication The Independent, Intel's Fab 24 facility in Leixlip will get a piece of its $1 billion capex boost, to manufacture 14 nm++ processors, which could include its "Coffee Lake" and "Coffee Lake Refresh" processors. Intel's investment in Ireland is expected to increase as the company plans to expand Fab 24, which could create an additional 4,000 jobs. The expansion project could cost around €50 million in the short term, however Independent predicts that the company could pump an additional €2 billion in a separate transaction, in response to tax-breaks from the island nation. Sources: Intel (PDF), Independent.ie
Add your own comment

21 Comments on Intel Ropes in Vietnam and Ireland to Increase Processor Volumes

#1
DeathtoGnomes
i wonder if this move isnt more about flooding the market than actually building a better long term product.
Posted on Reply
#2
btarunr
Editor & Senior Moderator
"DeathtoGnomes said:
i wonder if this move isnt more about flooding the market than actually building a better long term product.
You can't flood the market when your pricing is dogshit.
Posted on Reply
#3
HTC
"btarunr said:
You can't flood the market when your pricing is dogshit.
You can ... with unsold inventory ...

However, that can ultimately lead to quite a sharp drop in prices due to offer VS demand ...
Posted on Reply
#4
bonehead123
mo' milk'in & bilk'in by schmintel.....

less than a month ago they was playin the "shortage" game to build justification for god-awful high launch prices....

NOW all of a sudden they are supposedly ramping up other fabs to correct their own stupido faults.....

stinks to high heaven IMHO, but doesn't surprise me one little bit.....
Posted on Reply
#5
XXL_AI
intel increases production level, at $500 for consumer grade processor, no one cares..
Posted on Reply
#6
bibob94
Why not Indonesia? Hope the price is not insane when Intel processor released here
Posted on Reply
#7
rtwjunkie
PC Gaming Enthusiast
People crack me up. You’re all so successful in business, obviously, that you can think of nothing better than to be mad that a manufacturer is increasing production to meet demand.
Posted on Reply
#8
Slizzo
"bonehead123 said:
mo' milk'in & bilk'in by schmintel.....

less than a month ago they was playin the "shortage" game to build justification for god-awful high launch prices....

NOW all of a sudden they are supposedly ramping up other fabs to correct their own stupido faults.....

stinks to high heaven IMHO, but doesn't surprise me one little bit.....
Do you really believe that Intel wouldn't want to sell as many processors as possible without supply constraints? Come on now. Intel has never had to constrict supply in order to inflate pricing. If they want to raise pricing they can and do do it whenever they feel like doing so.

The reason for the constrained supply has been stated, and it makes sense. For quite a long time Intel was manufacturing their CPUs on 14nm, and motherboard chipsets on 22nm. Recently they had started producing their chipsets on 14nm; this caused supply issues for processors.
Posted on Reply
#9
R-T-B
"XXL_AI said:
intel increases production level, at $500 for consumer grade processor, no one cares..
I mean, it's sold out everywhere, so someone does...
Posted on Reply
#10
Prima.Vera
Maybe this is a just a step to move production from some local fabs, from CPUs to future GPUs that they are planing to release next year or in 2020. ;)


"R-T-B said:
I mean, it's sold out everywhere, so someone does...
Limited stock, doesn't mean it's sold like hotcakes. Typical callous business aka nGreedia style. Supply only a limited amount and then lie about chips selling like there is no tomorrow.
Posted on Reply
#11
DeathtoGnomes
"btarunr said:
You can't flood the market when your pricing is dogshit.
That would truly depend on intels 5 year plan and policy changes.
Posted on Reply
#12
hat
Enthusiast
"Prima.Vera said:
Limited stock, doesn't mean it's sold like hotcakes. Typical callous business aka nGreedia style. Supply only a limited amount and then lie about chips selling like there is no tomorrow.
You may have a point. Intel fanboys gonna Intel, but I've yet to see a thread here about somebody's shiny new 9xxxk CPU. Even @Knoxx29 is having second thoughts about the 9xxxk series, and he'll tell you to your face he's an Intel fanboy.
Posted on Reply
#13
Knoxx29
The Power Of Intel
"hat said:
Even @Knoxx29 is having second thoughts about the 9xxxk series, and he'll tell you to your face he's an Intel fanboy.
@Prima.Vera

Indeed, as i have always stated i am a freaking Intel Fanboy no matter what but as @hat already said i am having my second thoughts and to be honest i am almost 200% sure that this time i am not going for a 9xxxk series, honestly i love Intel even if prices are crazy that has never been a problem but this time and from my point of view it is not worth to buy a 9xxxk series, i cant believe that after many years of been a true Intel's Fanboy it is hard to say that i am in some kind of way disappointed.
Posted on Reply
#14
bonehead123
Well I don't consider myself an intel fanboi but I both like & dislike them, their chips, and their business practices for many of the same reasons as alof of other members here....

Having said that however, I will say I have been, and continue to be, very disappointed by the last few generations of chips and their prices, from which they have given us only marginal overall performance improvements for ever increasing costs....

The last chip I bought was a skylake 6700K, which I waited for almost a year after its release and paid what I thought was a fair price for it ($199) at the time. Since then, I have been patiently waiting and hoping for some significant improvements that would make me rush to my current rig and order all new components, but that hasn't happened to date, and unfortunately I don't see it happening any time soon either.... what a shame that they have have chosen this path, but oh well, they ain't gettin no moar of my moolah till they get their collective shiitesu together...
Posted on Reply
#15
medi01
"XXL_AI said:
intel increases production level, at $500 for consumer grade processor, no one cares..
I think you guys are somewhat delusional.
Intel's 300-350-ish CPUs went to 480 mark at retailers not because there was no demand for Intel CPUs.
People kept buying them even for 430, so...
Posted on Reply
#16
Slizzo
Guy I game with finally upgraded from his 2600K to a 9700K that he picked up at Microcenter. Got it for the $400 price.
Posted on Reply
#17
R-T-B
"Prima.Vera said:
Limited stock, doesn't mean it's sold like hotcakes.
The post I quoted said that "no one" wanted it.

I said nothing about hotcakes. Simply pointing out someone wants it.

I passed on it as well.
Posted on Reply
#18
R0H1T
"Slizzo said:
Guy I game with finally upgraded from his 2600K to a 9700K that he picked up at Microcenter. Got it for the $400 price.
Just for the processor or did you get a bundled combo or something? Anyway that's one hell of an upgrade & should last for years, till the time you want more cores :D
Posted on Reply
#19
Robcostyle
"Slizzo said:
Guy I game with finally upgraded from his 2600K to a 9700K that he picked up at Microcenter. Got it for the $400 price.
Bleh. Non-HT i7 with less threads than previous gen, is like porsche cayenne - it has a well-known label on it's hood, but calling it a PORSCHE feels so wrong.
Posted on Reply
#20
Slizzo
"R0H1T said:
Just for the processor or did you get a bundled combo or something? Anyway that's one hell of an upgrade & should last for years, till the time you want more cores :D
He bought processor alone.

"Robcostyle said:
Bleh. Non-HT i7 with less threads than previous gen, is like porsche cayenne - it has a well-known label on it's hood, but calling it a PORSCHE feels so wrong.
Non-HT with less threads that routinely out performs the 8700K.
Posted on Reply
#21
Robcostyle
"Slizzo said:
He bought processor alone.



Non-HT with less threads that routinely out performs the 8700K.
Nope, it doesnt.

9900K does. As for 9700k - youre being fed with the same perfomance for the same (sometimes even higher) price

Pss, and you know what? 8700K could be easily pushed up to 4.9GHz allcore. And up there, I dunno if 9700K still keeps it’s 2nd place
Posted on Reply
Add your own comment