I wonder if this might be the reason for Intel selling its divisions...
Adds analyst comment)
NEW YORK, June 12 (Reuters) - Texas Instruments Inc. (TXN.N: Quote, Profile, Research) said on Monday a new manufacturing process will double the number of chips it produces per silicon wafer, boosting processing speed, cutting power consumption, and helping the company compete with rival Intel Corp. (INTC.O: Quote, Profile, Research)
TI, the No. 1 supplier of cellphone chips, said the 45-nanometer chip-making process could lift device speeds by around 30 percent and cut power use by 40 percent, making it easier to run cellphone features such as games or e-mailing.
The company plans next year to start using a more costly manufacturing process than Intel, according to analysts, but they noted that the chip improvements TI will achieve are roughly in line with major players in the industry.
"TI is right up there with the leaders but they're not going to be leaving everybody else behind," said Nathan Brookwood, principal analyst for research firm Insight 64.
The upcoming chips would allow wireless users to run more simultaneous applications, such as playing games with 3-D graphics while running video conferences or receiving e-mail in the background, the company said.
The convergence of communication and entertainment on mobile devices has led to demand for lower power-consumption technologies. Miniaturization boosts chip processing speed by cutting down on the distance the electric load must travel.
TI said it developed what it believes to be the smallest 45-nanometer SRAM memory cell, occupying only 0.24 square microns, up to 30 percent smaller than other 45-nanometer memory cell devices announced to date.
It said that would be about 30 percent smaller than Intel's. An Intel official said that while it was not immediately clear how much progress TI had made, Intel was making similar improvements, and sooner.
We'll also double the number of chips and cut the power consumption. Our process development is further along. We'll be in production sooner," said Michael Mayberry, director of component research at Intel.
TI said the new 45-nanometer chips will be made in Texas, with initial samples due in 2007 and production starting in mid-2008. Intel said its first 45-nanometer chips would go into production by the end of 2007.
Last week, TI raised its second-quarter earnings and revenue outlook on strong demand across its chip business.
Its shares fell 72 cents or 2.4 percent on the New York Stock Exchange to $28.96.
yahoo.reuters.com |
