Big G changes its mind on Intel China

BIG GARTNER'S guy Bob Johnson seems to have got a bit confused about whether Intel's plans to build a trailing-edge 90-nm wafer fab in China are a good idea.

Two weeks ago Johnson panned the move saying it made no sense and was contrary to previous patterns of Intel behaviour.

By the time the China fab is running using 90 nanometre technology, Chipzilla will be ramping-up its 32 nanometre manufacturing. He added that Intel has not put a plant down on a greenfield site for many years and missed its chance in China.

However now, according to the EETimes, it seems that Johnson has had a bit of a sudden conversion and repented of his somewhat firm views of two weeks ago.

Now according to a Gartner DQ Monday report, Johnson says he has now looked a bit closer at the finances of the Chinese fab. Apparently when he made his original comments he didn't know that the Chinese government were giving Chipzilla a billion to open it.

With the fab's shell free and by moving in used equipment in from other fabs to deck it out it will be possible to upgrade its existing 65-nm process fabs, such as Fab 12 in Chandler, Arizona and Fab 24 in Leixlip, Ireland, ultimately to 32-nm production.

Yep, it is a "win win" all around and makes complete sense. Just as well that Intel didn't listen to what those highly paid analysts said.

More here.