Intel leaving low-end chipset business?

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Yousuf Khan

It seems Intel is running tight on low-end chipset capacity at its
older fabs, and is going to concentrate on the high-end Centrino
chipsets and stuff. That means all of the Celerons will be left high
and dry (can't run a CPU without chipset -- yet). It's not likely that
the Taiwanese chipset houses will be able to fill the void that
quickly, especially when Intel has been driving them out of this
business for the last several years. And what are people going to do,
run a Celeron on an Nvidia Nforce board, where the chipset costs more
than the CPU?

If Intel dumps low end chipsets, it leaves a big hole
http://www.theinquirer.net/?article=25109

Yousuf Khan
 
Yousuf Khan said:
It seems Intel is running tight on low-end chipset capacity at its
older fabs, and is going to concentrate on the high-end Centrino
chipsets and stuff. That means all of the Celerons will be left high
and dry (can't run a CPU without chipset -- yet). It's not likely that
the Taiwanese chipset houses will be able to fill the void that
quickly, especially when Intel has been driving them out of this
business for the last several years. And what are people going to do,
run a Celeron on an Nvidia Nforce board, where the chipset costs more
than the CPU?
Click to expand...

Gee, Yousuf, you've spotted an enormous hole in Intel's strategy. If
people can't buy reasonably-priced mobos for their Celerons, then they
won't buy Celerons. Intel apparently has not considered this. One of
us ought to write Intel to alert them to this oversight. We wouldn't
want folks who would otherwise have bought Intel turning elsewhere -
Via for example - for their CPUs. And poor Dell will have to close
down half of their production line.

This is a tragedy.
 
Yousuf said:
It seems Intel is running tight on low-end chipset capacity at its
older fabs, and is going to concentrate on the high-end Centrino
chipsets and stuff. That means all of the Celerons will be left high
and dry (can't run a CPU without chipset -- yet). It's not likely that
the Taiwanese chipset houses will be able to fill the void that
quickly, especially when Intel has been driving them out of this
business for the last several years. And what are people going to do,
run a Celeron on an Nvidia Nforce board, where the chipset costs more
than the CPU?
Click to expand...

Just how many people buy a system based on the relative cost of the
components? Of course they could drop the Celeron entirely, drop the
price on the Celeron-M and the chips sets, thus offering lower power and
higher performance at the same price and putting pressure on all the
other chipset makers.

How's that for totally baseless rumor? Probably as likely as the first
one, actually. I can believe (just barely) a price increase to match
supply and demand, but exit a market segment I can't. Drop a new piece
into the market with a price change? That I actually could believe.
If Intel dumps low end chipsets, it leaves a big hole
http://www.theinquirer.net/?article=25109
Click to expand...

The sky is falling...
 
It seems Intel is running tight on low-end chipset capacity at its
older fabs, and is going to concentrate on the high-end Centrino
chipsets and stuff. That means all of the Celerons will be left high
and dry (can't run a CPU without chipset -- yet). It's not likely that
the Taiwanese chipset houses will be able to fill the void that
quickly, especially when Intel has been driving them out of this
business for the last several years. And what are people going to do,
run a Celeron on an Nvidia Nforce board, where the chipset costs more
than the CPU?

If Intel dumps low end chipsets, it leaves a big hole
http://www.theinquirer.net/?article=25109
Click to expand...

Message to Dell: "Quit dumping our 'valuable IP' - we can't sell our
silicon below cost"?????
 
It seems Intel is running tight on low-end chipset capacity at its
older fabs, and is going to concentrate on the high-end Centrino
chipsets and stuff. That means all of the Celerons will be left high
and dry (can't run a CPU without chipset -- yet). It's not likely that
the Taiwanese chipset houses will be able to fill the void that
quickly, especially when Intel has been driving them out of this
business for the last several years. And what are people going to do,
run a Celeron on an Nvidia Nforce board, where the chipset costs more
than the CPU?

If Intel dumps low end chipsets, it leaves a big hole
http://www.theinquirer.net/?article=25109

Yousuf Khan
Click to expand...

If the Centrino stuff is where the money is at for Intel then it seems
like a no brainer, and no doubt not the first time Intel left their
customers high and dry either.

Ed
 
Yousuf Khan said:
It seems Intel is running tight on low-end chipset capacity at its
older fabs, and is going to concentrate on the high-end Centrino
chipsets and stuff. That means all of the Celerons will be left high
and dry (can't run a CPU without chipset -- yet). It's not likely that
the Taiwanese chipset houses will be able to fill the void that
quickly, especially when Intel has been driving them out of this
business for the last several years. And what are people going to do,
run a Celeron on an Nvidia Nforce board, where the chipset costs more
than the CPU?

If Intel dumps low end chipsets, it leaves a big hole
http://www.theinquirer.net/?article=25109
Click to expand...


Earth to Yousuf ... to the other companies that make chipsets
this is called ... wait for it ... "opportunity" ... right?

--

... Hank

http://home.earthlink.net/~horedson
http://home.earthlink.net/~w0rli
 
Hank said:
Earth to Yousuf ... to the other companies that make chipsets
this is called ... wait for it ... "opportunity" ... right?
Click to expand...

Outer Space to Hank, who's going to build all of those extra chipsets
for the chipset houses? They've probably already made their capacity
decisions based on the tiny scraps of business they are scrounging out
now. They'd have to get their foundries to crank out more product than
they originally planned for.

Yousuf Khan
 
Bill said:
Just how many people buy a system based on the relative cost of the
components?
Click to expand...

I'd hope pretty much every OEM or whiteboxer out there?
Of course they could drop the Celeron entirely, drop the
price on the Celeron-M and the chips sets, thus offering lower power and
higher performance at the same price and putting pressure on all the
other chipset makers.

How's that for totally baseless rumor? Probably as likely as the first
one, actually. I can believe (just barely) a price increase to match
supply and demand, but exit a market segment I can't. Drop a new piece
into the market with a price change? That I actually could believe.
Click to expand...

Whoa, where does this "baseless" rumour stuff come from? It's a rumour,
but not baseless. Intel did admit to chipset shortages in its last
quarterly report. Even though it's got five 300-mm wafer plants in
operation, and another one on the way. It produces all of its chipsets
at an older 200-mm fab, and apparently that's the fab that's maxed out
nowadays. So if it's trying to relieve some pressure from the chipset
plant, this would make some sense.

Yousuf Khan
 
Outer Space to Hank, who's going to build all of those extra chipsets for
the chipset houses? They've probably already made their capacity decisions
based on the tiny scraps of business they are scrounging out now. They'd
have to get their foundries to crank out more product than they originally
planned for.

Yousuf Khan
Click to expand...

There's this thing you probably haven't heard of, it's called money. It
tends to cause foundries to produce your product instead of others.

DS
 
Yousuf Khan said:
Outer Space to Hank, who's going to build all of those extra chipsets for
the chipset houses? They've probably already made their capacity decisions
based on the tiny scraps of business they are scrounging out now. They'd
have to get their foundries to crank out more product than they originally
planned for.
Click to expand...


1. Exactly.
2. ...
3. ...
4. Profit!

Supply, demand, scarcity ... pretty simple actually.

--

... Hank

http://home.earthlink.net/~horedson
http://home.earthlink.net/~w0rli
 
David said:
There's this thing you probably haven't heard of, it's called money. It
tends to cause foundries to produce your product instead of others.
Click to expand...

There's also this thing called being capacity constrained which money
won't resolve right away.

Yousuf Khan
 
David Schwartz wrote:
Click to expand...
There's also this thing called being capacity constrained which money
won't resolve right away.
Click to expand...

Yes, it will. If the price of a particular product rises enough, heaven
and earth will be moved to make more of it. The point is, the more of a
shortage there is and the more prices rise, the more capacity will,
miraculously, be found.

DS
 
These are supposed to be value-priced parts, how much extra are they
going to pay to get them, before it makes no sense bother with it? At
some point it becomes easier just to buy the higher-end parts.

Yousuf Khan
 
You are perfectly free to never read another word if you like. No one
is forcing you to keep informed, dimwit.

Yousuf Khan
 
Hank Oredson said:
I am also perfectly free to comment on the "information" you post.
Nobody is forcing you to read my comments.
Click to expand...

Speech is free. Civility is priceless. ;-) ;-)
 
Yousuf said:
I'd hope pretty much every OEM or whiteboxer out there?
Click to expand...

The OEM cares about the total, and building your own is less likely to
involve the bottom end stuff, you can buy cheaper than build in most
cases. The total cost is an issue, but that's not was I said or meant.
Whoa, where does this "baseless" rumour stuff come from? It's a rumour,
but not baseless. Intel did admit to chipset shortages in its last
quarterly report. Even though it's got five 300-mm wafer plants in
operation, and another one on the way. It produces all of its chipsets
at an older 200-mm fab, and apparently that's the fab that's maxed out
nowadays. So if it's trying to relieve some pressure from the chipset
plant, this would make some sense.
Click to expand...

If that starts a rumor that Intel is dropping the Celeron totally, it's
baseless, because I just pulled it out of the air. It might make sense,
but I had no data when I said it. If that doesn't qualify as baseless
what does? ;-)

As a former manager used to say, "I made that up."
 
Yousuf Khan said:
These are supposed to be value-priced parts, how much extra are they
going to pay to get them, before it makes no sense bother with it? At
some point it becomes easier just to buy the higher-end parts.

Yousuf Khan
Click to expand...
Or offload the manufacturing to tsmc/chartered/etc
 
Bill said:
The OEM cares about the total, and building your own is less likely to
involve the bottom end stuff, you can buy cheaper than build in most
cases. The total cost is an issue, but that's not was I said or meant.
Click to expand...

It's only these builders that'll care.
If that starts a rumor that Intel is dropping the Celeron totally, it's
baseless, because I just pulled it out of the air. It might make sense,
but I had no data when I said it. If that doesn't qualify as baseless
what does? ;-)

As a former manager used to say, "I made that up."
Click to expand...

No, as I said, it's not baseless, Intel is definitely saying they are
having trouble producing enough chipsets themselves. That's completely
established. The only rumour here is what Intel is going to do to
alleviate the situation, and in this rumour they're going to alleviate
the situation by cutting their less profitable chipsets. HOw's that for
a "grounded" rumour?

Yousuf Khan
 
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