Intel has decided they will now start to create their computer chips for other companies. In this article, it discusses that Intel will make chips for Achronix Semiconductor, who specializes in making microprocessors that speed up tasks that include "shuttling network traffic and encrypting data". Intel, who is the largest and wealthiest chip make in the market, will now be entering the highly dominated Taiwanese and Chinese contract manufacturing business.
I believe that Intel has done a good move in order to expand there business motives and clientele. Intel in my opinion, will grow from this move when it comes to creating chips for other companies. In the years to come, Intel will only grow with strength if they are to start producing these chips for other large scaled business/computer-affiliated companies. I also believe that it is a good move because they are giving solutions to other companies which in turn gives Intel a chance to prove themselves as the best chip producer. The move will create a larger profit for Intel because they are selling their product to other companies who use these chips in many of today's business related operations on computers. I feel that when a person hears Intel's name, they automatically think core processor, which Intel is known for. The reliability of their chips creates a better opportunity for the other companies because people will know that the product they are receiving, is made up of precision and speed. The companies who purchase the chips will be able to increase the speed of their data encryption and overall speed of networking traffic. This helps to create a smoother operation on the computer based product. I believe that the chips being produced to Achronix will definitely play a roll in the way Achronix grows as a company. Having such a solidly based company producing chips for them will make them a new threat for other micro-processing companies. I do not think that manufacturing chips for other companies will hurt Intel because it only has the capabilities to expand into newer business opportunities as they manufacture. Intel as a company is very large threat to chip producing companies because they have been able to perfect what they do. The only thing that seems to be iffy is when they will have to create specific chips for the needs of another company. I believe that they do have the resources and power to do such a thing, but only time will tell if Intel will be able to please all of their new business partners. Although a small market, the chip manufacturing has competition where a company could possibly out-do Intel or at least maintain speed with them. I also believe that this would be a hard feat to come by, but you can never take out the possibility. I find that Intel's business strategy in this instance is that of a good one. Expanding into a market of manufacturing chips has the capabilities of a large return for Intel. I am interested to follow up on this business decision in the time to come, but it seems that it shouldn't be able to hurt Intel as a chip producer.
http://www.nytimes.com/2010/11/01/business/01chip.html?ref=technology
I believe that Intel made a great move by partnering with Achronix Semiconductor to make chips for their microprocessors. This came as a surprise to me as Intel is known for keeping its chip making expertise to themselves but it seems to be a logical strategy seeing as it will only take up a small fraction of its manufacturing capacity. This is a great business strategy by Intel because it increases its client base. In this tough economy clients of Intel like Dell and other companies could cut down their demand of Intel chips which would hurt profits for Intel. This new partnership can counter the risk of losing clients due to the bad economy. Intel has failed to build a major business other than PC and Server chips so working with other designers could help it to learn new markets and offset the cost of its factories.
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