Saturday June 11, 2016

How Intel Makes A Chip

What does it really take to develop a microprocessor? This article sheds a little light into one of the most costly and riskiest feats in business.

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Intel rarely talks about how it creates a new chip. When Bloomberg Businessweek visited the Hillsboro fab in May, we were given the most extensive tour of the factory since President Obama visited in 2011. The reticence is understandable, considering that the development and manufacture of a new microprocessor is one of the biggest, riskiest bets in business. Simply building a fab capable of producing a chip like the E5 costs at least $8.5 billion, according to Gartner, and that doesn’t include the costs of research and development ($2 billion-plus) or of designing the circuit layout (more than $300 million).