According to Xfastest, Intel's Chief Financial Officer George Davis recently attended the Morgan Stanley TMT Summit and talked about many issues.
As we all know, AMD Ryzen processor finally achieved catch-up and surpassed last year's 7nm Zen 2 architecture. It has advantages in both process and performance and has achieved a high market share. In this regard, George Davis said that the main reason for the decline in Intel ’s processor market share is insufficient capacity. As Intel ’s strategy to deal with insufficient capacity is to prioritize high-end Core and Xeon products, leading to serious shortages of entry products such as Pentium and Celeron.
George Davis said that Intel will solve the problem of insufficient capacity this year and regain the lost entry market. According to Intel, its production capacity has increased by 25%, especially the shortest 14nm process.
As for the current market, George Davis stated that Intel is not afraid of competitive pressures. On the one hand, because Intel has formed a large user group for many years, its stability is difficult to shake. Secondly, even if the processor performance is not as good as that of a friend product, the advantages of the entire platform must be considered, such as supporting a specific random access memory or a special optimized instruction set.
In addition, George Davis talked about future process development, and 10nm production capacity is now accelerating. Next, Intel will launch a 7nm process in 2021, and then quickly switch to 5nm and regain leadership.
George Davis also frankly stated the situation of the 10nm process, that is, 10nm will not be as high as 14nm and 22nm. These words have two meanings. One is that 10nm products are limited in parallel with 14nm, and the other is that 10nm will only improve 1-2 generations (10nm +, 10nm ++) in order to quickly launch 7nm.
At the same time, George Davis warned the outside world that 10nm mass production, 7nm acceleration, and 5nm investment all need money. Considering that this part of the technology intersection is mainly concentrated in 2020-2021, it will definitely affect Intel's gross profit margin.