just thinking about it. Think of how many xbox's are out there (alot). Well if the xbox 2 will be CPU'd by IBM thats a hell of alot of processors not being needed to be produced by intel. Then the prescot is 90nm on a 300mm wafer. And well intel overproduced them in Q2. + they are loosing market share. I think intel will have to start closing fab units. anynoe agree?
I thought they already did.
It's not like they are producing less, it's just that they aren't producing as many more. They may not need any more shifts on the fabs that are running, or any new fabs, but thier production is still increasing. They will only close fabs, long enough to retool.
It may not be a case of having to shut a FAB, but want too, give the new low end XBox processor (probablu also on IBM's 90nm process) and allow them to move their own Fabs onto finer geometries...
Or maybe Inter want to produce a lot mor networking chips for 1G and 10G ethernet switches and routers!!!