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	<title>Comments on: Why Intel is sharing its secret sauce</title>
	<atom:link href="http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/feed/" rel="self" type="application/rss+xml" />
	<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/</link>
	<description>Fortune&#039;s tech team offers analysis and perspective on the world’s most important developments.</description>
	<lastBuildDate>Tue, 22 Dec 2009 03:43:12 +0000</lastBuildDate>
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		<title>By: MP, Tokyo JP</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6282</link>
		<dc:creator>MP, Tokyo JP</dc:creator>
		<pubDate>Wed, 04 Mar 2009 15:38:34 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6282</guid>
		<description>This article is misguided. Intel has licensed nothing to no one as of yet. They have merely agreed to port a few variants of the atom design from Intel fabs to the TSMC process. If you want to license the design, you go through intel. Why did they do this? Simply because Intel is not a merchant semiconductor manufacturer.



Let me give you an example. If Cisco ever wanted to use the atom core in a product, today they would be limited to buying a fully packaged discrete part from Intel. This part may not be 100% ideal for the application but Cisco will have to live with it because Intel will not customize the part unless you are a marque customer (think Apple) or are buying in huge volumes (think Apple).



By licensing the core design to Cisco, Intel is effectively handing over the design and packaging to Cisco. Cisco will have a lot of flexibility in say the package dimension, the speed of the part (low power/low speed vs high power/high speed), etc, etc, etc. And Intel will not have to go through the hassle of tailoring the part for each and every customer. The upside for Intel is that the licensee is a new customer that Intel would not otherwise have had AND Intel doesn&#039;t have do a thing about guaranteeing yields. Win-win for TSMC/Intel/customer.



This agreement is nothing but a new revenue stream for Intel. It&#039;s unclear though how much this will actually bring in. ARM/Marvell, TI, and to a lesser extent MIPS and Renesas/ST (SHX core) have the market locked up for embedded CPU cores. These vendors span the range from the very high end (2 GHz ARM/Qualcomm Snapdragon) to the mundane (Renesas/ST SHX found in almost every laser printer in the world).</description>
		<content:encoded><![CDATA[<p>This article is misguided. Intel has licensed nothing to no one as of yet. They have merely agreed to port a few variants of the atom design from Intel fabs to the TSMC process. If you want to license the design, you go through intel. Why did they do this? Simply because Intel is not a merchant semiconductor manufacturer.</p>
<p>Let me give you an example. If Cisco ever wanted to use the atom core in a product, today they would be limited to buying a fully packaged discrete part from Intel. This part may not be 100% ideal for the application but Cisco will have to live with it because Intel will not customize the part unless you are a marque customer (think Apple) or are buying in huge volumes (think Apple).</p>
<p>By licensing the core design to Cisco, Intel is effectively handing over the design and packaging to Cisco. Cisco will have a lot of flexibility in say the package dimension, the speed of the part (low power/low speed vs high power/high speed), etc, etc, etc. And Intel will not have to go through the hassle of tailoring the part for each and every customer. The upside for Intel is that the licensee is a new customer that Intel would not otherwise have had AND Intel doesn&#039;t have do a thing about guaranteeing yields. Win-win for TSMC/Intel/customer.</p>
<p>This agreement is nothing but a new revenue stream for Intel. It&#039;s unclear though how much this will actually bring in. ARM/Marvell, TI, and to a lesser extent MIPS and Renesas/ST (SHX core) have the market locked up for embedded CPU cores. These vendors span the range from the very high end (2 GHz ARM/Qualcomm Snapdragon) to the mundane (Renesas/ST SHX found in almost every laser printer in the world).</p>
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		<title>By: Steve, London</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6281</link>
		<dc:creator>Steve, London</dc:creator>
		<pubDate>Tue, 03 Mar 2009 21:11:26 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6281</guid>
		<description>Intel will find it hard going trying to shift ARM out from its number one position in the embedded space (mobiles, handheld devices, etc.). They tried it once and failed I believe. They have to get over the fact that power and performance is vital in the embedded space. Something ARM have long perfected. Intel will have too move fast, otherwise they will find out that they have missed the party. ARM is the big boy here so Intel will have to get use to being called the new boy on the block.</description>
		<content:encoded><![CDATA[<p>Intel will find it hard going trying to shift ARM out from its number one position in the embedded space (mobiles, handheld devices, etc.). They tried it once and failed I believe. They have to get over the fact that power and performance is vital in the embedded space. Something ARM have long perfected. Intel will have too move fast, otherwise they will find out that they have missed the party. ARM is the big boy here so Intel will have to get use to being called the new boy on the block.</p>
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		<title>By: paul, Bend OR</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6280</link>
		<dc:creator>paul, Bend OR</dc:creator>
		<pubDate>Tue, 03 Mar 2009 20:31:38 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6280</guid>
		<description>Your missing the cost side of things. Intel factories are not as cost competitive as TSMC.  Putting a low margin product there and keep higher margin products at Intel is what this is really about.</description>
		<content:encoded><![CDATA[<p>Your missing the cost side of things. Intel factories are not as cost competitive as TSMC.  Putting a low margin product there and keep higher margin products at Intel is what this is really about.</p>
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		<title>By: Brent, Sacramento CA</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6279</link>
		<dc:creator>Brent, Sacramento CA</dc:creator>
		<pubDate>Tue, 03 Mar 2009 19:27:33 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6279</guid>
		<description>Intel isn&#039;t necessarily sharing it&#039;s vaunted &#039;secret sauce&#039; which if you are tech-savvy you&#039;d know was the manufacturing process and high-k 45 nm process.  It is mainly sharing the manufacturing load.  The title of this article is misleading.</description>
		<content:encoded><![CDATA[<p>Intel isn&#039;t necessarily sharing it&#039;s vaunted &#039;secret sauce&#039; which if you are tech-savvy you&#039;d know was the manufacturing process and high-k 45 nm process.  It is mainly sharing the manufacturing load.  The title of this article is misleading.</p>
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		<title>By: A Lee, Sacramento, CA</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6278</link>
		<dc:creator>A Lee, Sacramento, CA</dc:creator>
		<pubDate>Tue, 03 Mar 2009 17:36:12 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6278</guid>
		<description>I&#039;ve read several of Mr Fortt&#039;s article... and I get the sense he&#039;s dumbing it down for the non-technical readers (I hope).  However, I&#039;m not concerned with the watering down of content, but if it&#039;s inaccurate... the editors should correct.



The Intel brand has been placed on many &quot;chips&quot; that were mfg outside of their fab network.  Examples include flash memory by Sharp (many many years ago), almost all of their communications processors at one-time or another (TSMC, UMC, XFab, Atmel), and the rebranding of chips mfg by someone else.



At the end of the day, we don&#039;t have enough information of the deal to truly understand the implications.  Is there a royalty fee or rev share? what are the use limitations? is there a vol cap? what are the termination clauses? contract expiration / renewal date(s)? etc. Without answers to these questions (and more)... everything is just speculation.</description>
		<content:encoded><![CDATA[<p>I&#039;ve read several of Mr Fortt&#039;s article&#8230; and I get the sense he&#039;s dumbing it down for the non-technical readers (I hope).  However, I&#039;m not concerned with the watering down of content, but if it&#039;s inaccurate&#8230; the editors should correct.</p>
<p>The Intel brand has been placed on many &#034;chips&#034; that were mfg outside of their fab network.  Examples include flash memory by Sharp (many many years ago), almost all of their communications processors at one-time or another (TSMC, UMC, XFab, Atmel), and the rebranding of chips mfg by someone else.</p>
<p>At the end of the day, we don&#039;t have enough information of the deal to truly understand the implications.  Is there a royalty fee or rev share? what are the use limitations? is there a vol cap? what are the termination clauses? contract expiration / renewal date(s)? etc. Without answers to these questions (and more)&#8230; everything is just speculation.</p>
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		<title>By: maddawg, wash. DC</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6277</link>
		<dc:creator>maddawg, wash. DC</dc:creator>
		<pubDate>Tue, 03 Mar 2009 17:21:55 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6277</guid>
		<description>HUGE LOLs to tom in seattle...



&quot;people who like starwars know there are only 3, true starwars movies...&quot;



what a crock of BS...for somebody that &#039;THINKS&#039; they know starwars, you speak like you&#039;ve never seen a single one.



i suppose the only reason you think the first three were good is because you were an impressionable, dim-witted, booger picking little kid for the first three.....



well, i&#039;m most certain you don&#039;t know that the starwars saga actually consists, as it did originaly from the very first starwars in the 70s, of 9 episodes....not 3....not 6, but 9!!!!

(yes, there are 3 more in the mind of lucas but i wonder if it&#039;ll take another 20 years for those to be made)



perhaps you were to enamoured as a simple-minded, easily influenced person to realize the saga is more than the three movies you like.



the last three, episode 1 through 3 were absolutely great movies!!!

(as good if not better than the original three)



of course, i&#039;m not caught up in my own selfish, ignorant, simple-minded point of view so that i express to the world my narrow-minded view of such things as movies nonetheless.



no, i figure you dislike the new starwars movies because you didn&#039;t get the same nostalgic euphoria coming over you that you eagerly anticipated the minute you heard the fourth starwars movie was being produced.

(it just goes to show....a lemming is a lemming is a lemming and they just dont change....but only keep on blindly following the others!)</description>
		<content:encoded><![CDATA[<p>HUGE LOLs to tom in seattle&#8230;</p>
<p>&#034;people who like starwars know there are only 3, true starwars movies&#8230;&#034;</p>
<p>what a crock of BS&#8230;for somebody that &#039;THINKS&#039; they know starwars, you speak like you&#039;ve never seen a single one.</p>
<p>i suppose the only reason you think the first three were good is because you were an impressionable, dim-witted, booger picking little kid for the first three&#8230;..</p>
<p>well, i&#039;m most certain you don&#039;t know that the starwars saga actually consists, as it did originaly from the very first starwars in the 70s, of 9 episodes&#8230;.not 3&#8230;.not 6, but 9!!!!</p>
<p>(yes, there are 3 more in the mind of lucas but i wonder if it&#039;ll take another 20 years for those to be made)</p>
<p>perhaps you were to enamoured as a simple-minded, easily influenced person to realize the saga is more than the three movies you like.</p>
<p>the last three, episode 1 through 3 were absolutely great movies!!!</p>
<p>(as good if not better than the original three)</p>
<p>of course, i&#039;m not caught up in my own selfish, ignorant, simple-minded point of view so that i express to the world my narrow-minded view of such things as movies nonetheless.</p>
<p>no, i figure you dislike the new starwars movies because you didn&#039;t get the same nostalgic euphoria coming over you that you eagerly anticipated the minute you heard the fourth starwars movie was being produced.</p>
<p>(it just goes to show&#8230;.a lemming is a lemming is a lemming and they just dont change&#8230;.but only keep on blindly following the others!)</p>
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		<title>By: Indianapolis, Indiana</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6276</link>
		<dc:creator>Indianapolis, Indiana</dc:creator>
		<pubDate>Tue, 03 Mar 2009 17:17:32 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6276</guid>
		<description>&quot;people who do not like starwars should not watch starwars.&quot;



Nor should the watch Star Wars.</description>
		<content:encoded><![CDATA[<p>&#034;people who do not like starwars should not watch starwars.&#034;</p>
<p>Nor should the watch Star Wars.</p>
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		<title>By: T Petrie, Leeds, UK</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6275</link>
		<dc:creator>T Petrie, Leeds, UK</dc:creator>
		<pubDate>Tue, 03 Mar 2009 17:05:47 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6275</guid>
		<description>Yes, the 80286 was outsourced to AMD back when customers needed to feel that if the chip manufacturer went down, they wouldn&#039;t be stranded. More relevant is the deal with IBM wherein the 80386 core was traded for ASIC design capability for exactly the same reasons as this partnership has been announced. The fact that the author did not know this is a testament to how fruitful it was for both companies.</description>
		<content:encoded><![CDATA[<p>Yes, the 80286 was outsourced to AMD back when customers needed to feel that if the chip manufacturer went down, they wouldn&#039;t be stranded. More relevant is the deal with IBM wherein the 80386 core was traded for ASIC design capability for exactly the same reasons as this partnership has been announced. The fact that the author did not know this is a testament to how fruitful it was for both companies.</p>
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		<title>By: Jake, Salem MA</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6274</link>
		<dc:creator>Jake, Salem MA</dc:creator>
		<pubDate>Tue, 03 Mar 2009 16:55:15 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6274</guid>
		<description>Brilliant observation, Tony, but I doubt you have to worry about the author watching a lot of star wars (or at least the newer, crappy ones).



Anyhow... the cooking analogy was working... and then you killed it. Seems like the last three paragraphs were just a lead-in to a corny joke.



&lt;strong&gt;From Jon Fortt:&lt;/strong&gt; Last three grafs? Maybe the last two.</description>
		<content:encoded><![CDATA[<p>Brilliant observation, Tony, but I doubt you have to worry about the author watching a lot of star wars (or at least the newer, crappy ones).</p>
<p>Anyhow&#8230; the cooking analogy was working&#8230; and then you killed it. Seems like the last three paragraphs were just a lead-in to a corny joke.</p>
<p><strong>From Jon Fortt:</strong> Last three grafs? Maybe the last two.</p>
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		<title>By: Tom, Seattle, WA</title>
		<link>http://brainstormtech.blogs.fortune.cnn.com/2009/03/03/why-intel-is-sharing-its-secret-sauce-with-tsmc/#comment-6273</link>
		<dc:creator>Tom, Seattle, WA</dc:creator>
		<pubDate>Tue, 03 Mar 2009 16:43:40 +0000</pubDate>
		<guid isPermaLink="false">http://bigtech.blogs.fortune.cnn.com/?p=2050#comment-6273</guid>
		<description>People who like starwars know there are only 3, true Starwars movies...and they don&#039;t feature jar jar binks.</description>
		<content:encoded><![CDATA[<p>People who like starwars know there are only 3, true Starwars movies&#8230;and they don&#039;t feature jar jar binks.</p>
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