Intel 2011: a year of records, milestones and breakthroughs

Intel’s CEO Discusses Q4 2011 Results – Earnings Call Transcript [Seeking Alpha, Jan 19, 2012] + Q&A

–> Intel’s industry position and prospects for years ahead [Dec 9, 2010 – March 21, 2011]
      • reinvented the transistor with our 3-D Tri-Gate technology
        –> Intel’s SoC strategy strengthened by 22nm Tri-Gate technology [May 10 – Nov 30, 2011]
      • unveiled a new generation of personal computers, the Ultrabook
      • And
        when Windows 8 launches, we’ll be ready with both PCs and tablets.

        –> Windows 8 Metro style Apps + initial dev reactions [Sept 15, 2011]
        –> Windows 8: the first 12 hours headlines and reports [Sept 14, 2011]
        –> Windows 8 gaining smartphone like “connected standby” capability [Nov 23, 2011]
        –> A too early assesment of the emerging ‘Windows 8’ dev & UX functionality [June 24 – Aug 19, 2011]
        –> Microsoft’s next step in SoC level slot management [May 27 – June 2, 2011]
        –> Microsoft on five key technology areas and Windows 8 [May 24, 2011]
        –> Acer’s decision of restructuring: a clear sign of accepting the inevitable disintegration of the old PC (Wintel) ecosystem and the need for joining one of the new ecosystems under formation [April 1 – Aug 2, 2011]
        –> CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7, 2011]
        • Our intention is to participate broadly … from day one, as you see the Android tablets coming out and Windows 8 tablets coming out.
        • And you’ll see us well-positioned in multiple price point on those. And who knows where those prices go over time, but our intention would be to use the advanced silicon integration capability we have to be able to drive the build material cost down, integration up in tablet space, which I think is going to be a sweet spot for Intel.
        • [regarding much lower Android tablet sales than most expected for 2011:] actually, they were about where I thought they would be, but I was well below what many of you had. I think the thing is, tablets are a little bit about hardware and an awful lot about software. And I think that until you get to Ice Cream Sandwich, the offering isn’t as powerful as what’s out there with Apple. And as the Ice Cream Sandwich tablets start shipping, I think you’ll start seeing a little bit better receptivity, Google just added the music store, the videos are better, everything got a little bit better bit ICS. And so I think the better test is year 2 here, in terms of is there anyone that can compete with the iPad?
          –> “A new tablet from Vizio will come with Intel’s upcoming Atom chip, code-named Medfield, and will run Google’s Android operating system” –> VIZIO’s two pronged strategy: Android based V.I.A. Plus device ecosystem + Windows based premium PC entertainment [Jan 11, 2012]
          –> Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market [April 17, 2011]
        • And then the other part of that test, of course, is the Windows 8 tablets that are being queued up for production. So I don’t know that the whole tablet thing is settled down by any stretch, and I do have a lot of interest in, if you heard me at CES about these hybrid and convertible designs as they apply to clamshells, where there’s a significant blurring between what people do with tablets and what people do with PCs. So the jury is out on I think the long-term segmentation by form factor.
        • But I do think you’ll see more progress on the Android side as a result of ICS.
      • closed 2 large acquisitions: Together, McAfee and IMC added $3.6 billion in revenue and new strategic capabilities in security and connectivity that will allow us to extend our strategies across the continuum of computing.
        • McAfee:  has already announced the Deep Safe platform, around which we are building a family of products to take advantage of the combination of McAfee software and Intel silicon to deliver first-of-its-kind protection against day 0 threats.
        • Infineon Wireless Solutions: the Infineon acquisition has given us a very strong position in basic phones and feature phones. They shipped 400 million modems this year into the cell phone business.
          –> New Mobile and Communications Group (MCG) at Intel [Dec 16 – 30, 2011]
      • in the fourth quarter, we announced the acquisition of Telmap, whose location-based search and navigation expertise will allow us to add differentiated services to Intel architecture-based devices from Ultrabooks to smartphones
      • broke ground on the world’s first 14-nanometer fabs, D1X in Oregon and Fab 42 in Arizona:
        –> Be aware of ZTE et al. and white-box (Shanzhai) vendors: Wake up call now for Nokia, soon for Microsoft, Intel, RIM and even Apple! [Feb 21 – March 25, 2011]
        –> mentioning that in 3 years down to 14nm: Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market [April 17, 2011]
        • Turning to 2012 … We are forecasting an increase in capital spending to $12.5 billion as we build the world’s first high-volume manufacturing factories for 14-nanometer process technology.
        • In terms of the makeup of the specific capital in ’12, it’s more heavily weighted than what we’ve historically seen to building buildings. … it’s a 2-year cycle and we’re building buildings. So we’re seeing that it’s more than 1/3 of the total capital in ’12. I think that piece starts to come down in ’13. The equipment piece actually comes down from ’11 to ’12, and that’s a little more — it’s heavily weighted towards 14-nanometer equipment that we’re putting in place.
      • 2011 revenue and earnings were the best in Intel’s history
        • surpassed $50 billion in revenue for the first time, after crossing $40 billion for the first time just last year
          • a fantastic year for our Data Center Group, with revenue up 17% on record microprocessor units, exceeding $10 billion for the first time
          • storage revenue was up 42% to a new record high
          • Embedded Communications Infrastructure business was up 18%, also to a new record high
          • record notebook microprocessor units in 2011, as the PC Client Group grew 17%, fueled by demand in the enterprise and emerging markets
            • China, now the largest PC market in the world, represents 20% of all PC demand, and grew a remarkable 15%. Even with that, China has a household penetration rate of just 35%, versus almost 90% in the U.S
          • Sandy Bridge microprocessors accounted for approximately 40% of the company’s total revenue
            –> Intel’s SoC strategy strengthened by 22nm Tri-Gate technology [May 10 – Nov 30, 2011]
          • We’ll launch Ivy Bridge, our first 22-nanometer product, in early spring. Ivy Bridge will improve on the graphics performance of Sandy Bridge by more than 70%. We have a very fast ramp of Ivy Bridge, strong demand …
          • In terms of utilizations, we’re running full out today. We’re just at the beginning edge of 22-nanometer [with the ramping 4 big 22-nanometer factories]. Every unit that we can get out there, we can sell. So we’re running the new stuff full out. … those first wafers that come off the line for 22-nanometer, these are big factories, the very first products are coming off the line now. Those tend to be pretty expensive [therefore Q1 gross margin forecast is 63% vs 64% for the full year on a high 9 — high single-digit revenue growth] and that cost comes down over the course of the year as well.
        • this was our second consecutive year of more than 20% revenue growth
      • volume shipments of our Sandy Bridge server product, code-named Romley, have begun: We’ll launch Romley for servers in the first quarter. We’re seeing right now, stronger demand for Romley than we did from the Nehalem at the same point of its life sort of 2 years ago. The product is in high-volume production now getting ready for our customers assistance launches later this quarter and into early Q2.
        • … the Data Center business we have today is not your grandmother Server business that we had for many years, right? There’s other elements in there around storage and networking equipment.
        • And the other big element of that is the sales to the large Internet data centers that are being built up around the world. … They tend to be a function of when Facebook or Google or Amazon decides to turn on a new Data Center and they buy x 100,000 units. Or there’s a new generation and they want to have a quick complete swap out.
        • And as a result, we’re seeing a change to the historical linearity that we saw in this — in the enterprise Data Center business for many years. So I think you should probably get used to a little bit more lumpiness here and look at the overall year-on-year growth, which is what we’ve been trying to discuss at the last couple of analyst meetings.
      • we also demonstrated Knights Corner, the first single-chip coprocessor capable of delivering a teraflop of computing power
        –> “Knights Corner, the first commercial Intel MIC (many integrated core) architecture product, will be manufactured using Intel’s latest 3-D Tri-Gate 22nm transistor process and will feature more than 50 cores. Furthermore, Intel promises compatibility with existing x86 programming model and tools.” –> Intel’s Knights Corner: 50+ Core 22nm Co-processor [tom’s hardware, Nov 16, 2011]
      • China is the world’s largest market for mobile phones with more than 950 million subscribers. It’s also at the forefront of the smartphone boom and will be the home of the world’s first 32-nanometer smartphone.
      • Last week at CES, Lenovo announced the K800 smartphone based on our Medfield SoC. The K800 will be available on the China Unicom network in Q2, and will showcase Intel architecture in a phone with very competitive battery life and outstanding performance.
–> New Mobile and Communications Group (MCG) at Intel [Dec 16 – 30, 2011]
–> “A new tablet from Vizio will come with Intel’s upcoming Atom chip, code-named Medfield, and will run Google’s Android operating system. … Intel’s Medfield & Atom Z2460 Arrive for Smartphones: It’s Finally Here [AnandTech, Jan 11, 2012] …” –> VIZIO’s two pronged strategy: Android based V.I.A. Plus device ecosystem + Windows based premium PC entertainment [Jan 11, 2012]
–> Intel SoC for Cloud Clients [June 27 – Aug 23, 2010]
    • [Also] announced the Medfield-based smartphone reference design that boasts a sleek form factor, 8 hours of talk time, 6 hours of 1080p video playback and 14 days of standby power, clearly demonstrating the low-power, high-performance capabilities of Intel architecture. Yet as the performance of this device that really showcases what’s possible when you combine advanced process technology and the world’s most popular computer architecture. Though Medfield is our very first smartphone SoC, independent testers appointed to benchmarks to place Medfield reference design among the very best in the markets.
    • It was this differentiated performance and exceptional roadmap and exciting new usage models that led to our multiyear, multi-device strategic relationship with Motorola Mobility. The first of these Intel architecture-based devices will go through carrier certification this summer with commercial availability shortly thereafter. And while the Lenovo and Motorola designs are exciting first steps, we’re not done making announcements in the smartphone space.
    • On phones, our strategy is a little bit different [from those of PC’s and tablet’s]. We’re coming in at the top of the smartphone market. Our value proposition initially is aimed at best performance and very competitive feature sets and very good battery life. Over — and then let me say on the other end of the market, the Infineon acquisition has given us a very strong position in basic phones and feature phones. They shipped 400 million modems this year into the cell phone business. So over time, what we’ll want to do is grow that capability up by integrating the apps processor and the comm processors onto the same chip, while we drive our initial positions in apps processors from the top down.
    • [regarding: given that all the smartphones also have Wi-Fi, Bluetooth and GPS and … . Do you have that capability today internally? ] Yes, we’ve got the multi-comm capability in-house. A lot of that came with the acquisition from the Infineon group. And that’s got 2G, 3G, they have an LTE solution underway. We’ve had Wi-Fi forever, and we’ve had Bluetooth for many years. So all of those are being integrated into our comms capabilities. In fact, we’ve integrated those business units now into a single unit to be able to accelerate that.
    • I did not say, I want to be very clear, I did not say that our intent would be to integrate Medfield to baseband. I said over time, you’ll see us move from the low-end baseband-only business in the feature phones and value phones to having it a more integrated capability. I didn’t say when and what generation. I’m really not at liberty to discuss that. But the major thrust over the next year or 2 is going to be to have very high-performance modems as a comps processor and the best-of-class apps processors for smartphones.

About Nacsa Sándor

Lazure Kft. • infokommunikációs felhő szakértés • high-tech marketing • elérhetőség: Okleveles villamos és automatizálási mérnök (1971) Munkahelyek: Microsoft, EMC, Compaq és Digital veterán. Korábban magyar cégek (GDS Szoftver, Computrend, SzáMOK, OLAJTERV). Jelenleg Lazure Kft. Amire szakmailag büszke vagyok (időrendben visszafelé): – Microsoft .NET 1.0 … .NET 3.5 és Visual Studio Team System bevezetések Magyarországon (2000 — 2008) – Digital Alpha technológia vezető adatközponti és vállalati szerver platformmá tétele (másokkal együttes csapat tagjaként) Magyarországon (1993 — 1998) – Koncepcionális modellezés (ma használatos elnevezéssel: domain-driven design) az objektum-orientált programozással kombinált módon (1985 — 1993) – Poszt-graduális képzés a miniszámítógépes szoftverfejlesztés, konkurrens (párhuzamos) programozás és más témákban (1973 — 1984) Az utóbbi időben általam művelt területek: ld. (Experiencing the Cloud) – Predictive strategies based on the cyclical nature of the ICT development (also based on my previous findings during the period of 1978 — 1990) – User Experience Design for the Cloud – Marketing Communications based on the Cloud
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2 Responses to Intel 2011: a year of records, milestones and breakthroughs

  1. Pingback: Fejlesztés a Windows 8 ARM-os változatára « Szoftver aktualitások

  2. Pingback: Fejlesztés a Windows 8 ARM-os változatára - Hírcsatorna - devPortal

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