Chip Manufacturing Race Between Intel, ARM Tightening | News | ChannelWorld.in
Close
%%CLICK_URL_UNESC%%

Chip Manufacturing Race Between Intel, ARM Tightening

Added on Sep 21, 2012 by Agam Shah

The race to manufacture the most power-efficient and fastest chips is gaining momentum, with contract chip manufacturer GlobalFoundries on Thursday announcing technology advances that analysts said could allow the company to catch up with Intel's chip-making capabilities by 2014.

Smartphones, tablets and laptops get faster and more power-efficient as chip makers and fab companies implement new technologies to reduce the size of and leakage on chips. GlobalFoundries makes x86 and ARM chips for smartphones, tablets and PCs, and by 2014 will implement a manufacturing process that could be on par with Intel's longstanding manufacturing advantage.

Intel is the most advanced chip manufacturer in the world, making chips using the 22-nanometer process and implementing 3D transistor structures, which are more power efficient than the older 2D transistor structures. But GlobalFoundries said it will start volume production of chips using the 14-nm process by 2014, matching up with Intel's plans. The nanometer number refers to the size of the smallest circuits etched onto the chip.

By 2014, GlobalFoundries also hopes to implement 3D transistors, which could deliver a 40 percent to 60 percent boost to battery life on devices compared to chips based on the 20-nm process, which will have 2D transistors and be made in 2013. Intel was the first to implement 3D transistors in chips made using the 22-nm process.

Intel is about one to two years ahead of its manufacturing rivals, but GlobalFoundries is accelerating the implementation of its manufacturing technology to catch up with Intel, analysts said. If GlobalFoundries does succeed, the company will eliminate the delay ARM-based chip makers usually face on manufacturing and remain competitive with Intel. While Intel makes its own chips, ARM usually licenses processor designs to companies like Qualcomm or Nvidia, who get chips made from contract chip makers like GlobalFoundries and TSMC (Taiwan Semiconductor Manufacturing Co.).

ARM currently dominates the smartphone and tablet markets, while Intel is still trying to find its bearings there. Intel considers its advanced manufacturing process a strength, and has said it will overtake ARM on power efficiency in a few years, which will result in longer battery life on mobile devices. But ARM is working its way to designing processors with 3D transistor structures, and GlobalFoundries in August signed an agreement with ARM to deliver chips with 3D transistors to customers.

"Normally 14-nanometer would ramp to volume in 2015, but we are accelerating the schedule by one year," said Jason Gorss, a GlobalFoundries spokesman, in an email. The company usually advances the manufacturing process every two years, but is implementing tools at the 20-nm process for an easier transition to 3D transistors on the 14-nm process.

GlobalFoundries plans volume production of chips on the 14-nm process by 2014, but Gorss could not comment on when customers would offer products based on those chips.

Intel declined to comment on GlobalFoundries' plans to implement 3D transistors on the 14-nanometer process by 2014.

Customers want more power-efficient devices, and GlobalFoundries' goal to advance to the 14-nanometer process by 2014 is possible, though it typically takes time to implement, said Bill McClean, president of IC Insights.

"Intel's trying to keep ahead of the game to outrun everyone," McClean said. "That is what it is coming down to in a smartphone-dominated world."

There's a big difference between simply offering 3D transistor technology and manufacturing chips in high volume based on the technology, McClean said. TSMC struggled with implementing 28-nm technology recently, and FinFET (also called 3D) is a brand-new transistor structure, which could take time to implement. Switching from 2D to a brand-new 3D transistor structure within a year is ambitious, McClean said.

"This is a quantum leap," McClean said.

But at the same time, the company has to offer the latest technology to attract customers for the long term.

"You need to be at the leading-edge technology in the foundry business. If you can't keep up ... there is no profit to be made there," McClean said.

GlobalFoundries was the third-largest contract manufacturer in terms of sales behind TSMC and United Microelectronics Corp. (UMC) in 2011, according to IC Insights. The analyst firm is projecting GlobalFoundries to take the second spot from UMC by the end of this year.

But if GlobalFoundries achieves its 2014 goals, many customers will start using the company as their manufacturing source by 2014, said Nathan Brookwood, principal analyst at Insight 64. Customers want long-term stability from contract manufacturers, Brookwood said.

 

Money also matters in the transition to a new process, Brookwood said. GlobalFoundries is investing billions of dollars in its factories and has access to funds from owner Advanced Technology Investment Co., which is part of the Abu Dhabi government's Mubadala Development investment arm.

GlobalFoundries is meeting the needs of customers and reacting quickly to Intel's aggressive push into mobile markets, Brookwood said.

"They needed to accelerate something," Brookwood said.

Editor's Pick
Customer service: The proof is in the numbers

Customer service: The proof is in the numbers

Customer satisfaction increases when you find your greatest weaknesses and then hone in with a laser focus to address them.

5 principles for great vendor relationships

5 principles for great vendor relationships

Unhappy with your vendor? Challenge them to commit to a strategic relationship. And don’t hesitate to move on if they don’t.

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is the goldmine for us, asserts Jayanth Gojer, COO of Bangalore’s Vitage Systems.

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

Customers need applications to effectively adopt and integrate the SMAC stack and we help them achieve the objective, says Pankaj Ratra, Director-Sales & Marketing, Path Infotech

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

Enough is said about Digital India. But it’s actually happening here and now. Ujjivan Financial Services, a microfinance company, is leveraging a mobile app to make sure that its underprivileged customers get loans real quick in order to grow their businesses.

Latest Videos
Cloud Computing is Not Hype, But Real: Channel Partners

Cloud Computing is Not Hype, But Real: Channel Partners

Cloud Computing has come out of the hype cycle and is now the defining point for enterprise IT, channel partners observe, about the potential for cloud, cloud services and the financing models around cloud computing. 

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is the goldmine for us, asserts Jayanth Gojer, COO of Bangalore’s Vitage Systems.

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

Customers need applications to effectively adopt and integrate the SMAC stack and we help them achieve the objective, says Pankaj Ratra, Director-Sales & Marketing, Path Infotech

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

Enough is said about Digital India. But it’s actually happening here and now. Ujjivan Financial Services, a microfinance company, is leveraging a mobile app to make sure that its underprivileged customers get loans real quick in order to grow their businesses.

How Mobility Has Helped Our Business Grow: Channel Partners

How Mobility Has Helped Our Business Grow: Channel Partners

Indian channel partners share how mobility has been instrumental in growing the business of their customers and how that, in turn, has taken partners' business to another level.

ChannelWorld Research
Why Channels Have Changed Their Go-to-Market Strategy in Six Months

Why Channels Have Changed Their Go-to-Market Strategy in Six Months

According to our SOTM Mid-Year Survey, a majority of Indian channels said their top go-to-market strategy was to offer services in a recurring revenue model—not introducing new technologies, like SMAC, which was their top GTM strategy six months ago.

SOTM Mid-Year Survey 2015: Your Roadmap for the Next 6 Months

SOTM Mid-Year Survey 2015: Your Roadmap for the Next 6 Months

According to the survey, the next six months of the year are going to be eventful. Here are the challenges, emerging technologies and trends that will shape the rest of the year for you.

Big Data, Mobility Top Partners’ Wish List: SOTM Mid-Year Survey 2015

Big Data, Mobility Top Partners’ Wish List: SOTM Mid-Year Survey 2015

According to the ChannelWorld's State of the Mart Mid-Year Survey (SOTM) 2015, big data is the way to go for the enterprise channels for the second half of this year, with 34 percent partners planning to invest in it.

Private Cloud Still Remains a ‘Safe Bet’ for Partners: SOTM Survey 2015

Private Cloud Still Remains a ‘Safe Bet’ for Partners: SOTM Survey 2015

According to the STOM 2015 survey, channel partners who are into cloud computing feel that 42 percent of their business will be generated by private cloud.

Partners Pin Hope on Government, Expects IT Spend to Grow: SOTM Mid-Year Survey 2015

Partners Pin Hope on Government, Expects IT Spend to Grow: SOTM Mid-Year Survey 2015

According to the ChannelWorld's State of the Mart Mid-Year survey (SOTM) 2015, 30 percent of the channel partners believe that IT spend in the government sector is likely to increase in next six months.

No More Baby Steps, Partners Ready to ‘Risk’ Gambling with Disruptive Tech: SOTM Survey 2015

No More Baby Steps, Partners Ready to ‘Risk’ Gambling with Disruptive Tech: SOTM Survey 2015

According to ChannelWorld’s State of the Mart Survey (SOTM) 2015, 43 percent of channel partners say their business will have a ‘high risk appetite’ in the second half of this year.

Channels’ 3 Great Expectations from Tech OEMs

Channels’ 3 Great Expectations from Tech OEMs

Introduced as an individual category under ‘Expectations from tech OEMs’ list in SOTM Mid –Year Survey, ‘transparent deal registration’ emerged as the biggest concern for channel companies in India.

SLIDESHOWS
What Quarterly Earnings Reveal About Top IT Companies

What Quarterly Earnings Reveal About Top IT Companies

As top companies reported their quarterly earnings, we find out what strategy worked best for them and the causes of concern in the future.

10 Things You Need to Know About Bi-Modal IT

10 Things You Need to Know About Bi-Modal IT

No longer just another buzzword, bi-modal IT is soon becoming a necessary organizational setup in most companies, especially the ones which find it difficult to go completely digital. Read on to know what CIO.com (http://bit.ly/1Rz1Jti) wants you to know about this system.

Five Hybrid Cloud Benefits Your Customers Can’t Ignore

Five Hybrid Cloud Benefits Your Customers Can’t Ignore

According to IDC, the global cloud market, including private, public and hybrid clouds, will hit $118 billion in 2015 and crest at $200 billion by 2018. If that isn’t enough for you to convince customers to take the hybrid cloud route, here are five more from across the web.

Horrible Bosses: Five Bosses You’d Love to Kill

Horrible Bosses: Five Bosses You’d Love to Kill

It takes all kinds to make the world go round. But it takes only one to bring yours to a standstill: Your boss. Here are five types of bosses you wouldn’t miss—when they’re gone (under mysterious circumstances).

India's Leading VADs
Why Channels Want to Partner With Inflow Technologies

Why Channels Want to Partner With Inflow Technologies

Inflow Technologies’ tie up with 39 vendor companies, an extensive tech portfolio, and a services play, are great value propositions for enterprise channels, says its President and CEO, Byju Pillai.

iValue Creates Real Value for Channels in India

iValue Creates Real Value for Channels in India

Focused on niche vendor alliances around data, network and app management backed by a robust channel ecosystem marked iValue's success in 2014. What clicked for the seven-year-old VAD?

RAH Infotech Shows Channels the Way Ahead

RAH Infotech Shows Channels the Way Ahead

Mutual trust and long lasting bond with vendor companies and channel partners helps VADs to evolve and succeed in today’s aggressively competitive market. Leveraging competent channel partners and forge niche vendor alliances marks RAH Infotech’s success in 2014.

How Satcom Infotech is Adapting to New Security Landscape

How Satcom Infotech is Adapting to New Security Landscape

As a leading value added distributor, Satcom Infotech is emerging as an end-to-end security player, helping both customers and partners grow.

How ComGuard Shields Channel Partners

How ComGuard Shields Channel Partners

As emerging technologies introduce new threats to the enterprise landscape, they are making channel partners anxious. But VADs like ComGuard are putting their worries to rest. Here's how.

Tech Chat
Collaborating To Outcome Based World: Priyadarshi Mohapatra, Avaya

Collaborating To Outcome Based World: Priyadarshi Mohapatra, Avaya

Priyadarshi Mohapatra, Managing Director, India and SAARC, Avaya, on how IT is transitioning from a keep-the-lights-on role to one that enables customers to deliver results.

The Dawn of the Digital Age: Akhilesh Tuteja, KPMG

The Dawn of the Digital Age: Akhilesh Tuteja, KPMG

The development of digital infrastructure will be a key growth driver for technology and solution providers. 

Paradigm Shift from End-Users to User-First : Parag Arora,Citrix

Paradigm Shift from End-Users to User-First : Parag Arora,Citrix

Parag Arora, Area Vice President and India Head, India Sub-continent, Citrix, says new technologies will force organizations to take a user-first approach in 2015.

Mobile and Cloud Are Gamechangers of the Future: Karan Bajwa, Microsoft

Mobile and Cloud Are Gamechangers of the Future: Karan Bajwa, Microsoft

Karan Bajwa, Managing Director, Microsoft India, says, in  2015, organizations will adopt a mobile-first and cloud-first strategy to get ahead of competition.

A Network for the Internet of Everything : Dinesh Malkani,Cisco

A Network for the Internet of Everything : Dinesh Malkani,Cisco

Dinesh Malkani, President, India and SAARC, Cisco, talks about IoT and the significant technology transitions in the networking world.

Moving to the Third Platform: Jaideep Mehta, IDC

Moving to the Third Platform: Jaideep Mehta, IDC

Cloud and mobility are the two technologies that will fuel the rapid adoption of the third platform in India.

Envisaging a Holistic Security Strategy For 2015: Sanjay Rohatgi,Symantec

Envisaging a Holistic Security Strategy For 2015: Sanjay Rohatgi,Symantec

Sanjay Rohatgi, President–Sales, Symantec India, says the company has a set of holistic solutions in place to secure organizations from security threats. 

Beating the Bad Guys: Sivarama Krishnan, PwC

Beating the Bad Guys: Sivarama Krishnan, PwC

Organizations will need to turn inwards to establish robust information security strategies.

Building Capabilities for a Digital Tomorrow: Alok Ohrie,Dell

Building Capabilities for a Digital Tomorrow: Alok Ohrie,Dell

Alok Ohrie, President and Managing Director, Dell India, on the company’s investments to build end-to-end solutions and delivery capabilities for a digital world.

FAST TRACK
Kamtron Systems

Kamtron Systems

Transitioning towards a service-oriented company will boost our growth, believes Kavita Singhal, director, Kamtron Systems.

TIM Infratech

TIM Infratech

Delivering ‘best of breed’ technologies to enterprises is key to success, says Monish Chhabria, MD, TIM Infratech

Mudra Electronics

Mudra Electronics

A vendor-agnostic strategy helped us sustain business, says Bharat Shetty, CMD, Mudra Electronics.

Systematix Technologies

Systematix Technologies

Our USP is a customer-friendly approach backed by services, says Akhilesh Khandelwal, Director, Systematix Technologies.

CorporateServe Solutions

CorporateServe Solutions

Our ability to turnaround complex ERP projects in record time is what gets us customer referral, says Vinay Vohra, Founder & CEO, CorporateServe Solutions.

KernelSphere Technologies

KernelSphere Technologies

We are emerging as an end-to-end systems integrator, says Vinod Kumar, MD, KernelSphere Technologies.

Uniware Systems

Uniware Systems

We constantly validate emerging technologies for first-mover advantage, says Vergis K.R., CEO, Uniware Systems.

Astek Networking & Solutions

Astek Networking & Solutions

An innovative approach helps us stay successful, says Ashish Agarwal, CEO, Astek Networking & Solutions.

CSM Technologies

CSM Technologies

Our approach is backed by innovation and simplicity, says Priyadarshi Nanu Pany, CEO, CSM Technologies.

SOCIAL MEDIA @ CW India
SIGNUP FOR OUR NEWSLETTER

Signup for our newsletter and get regular updates.