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Otellini’s scaremongering or true threat?

Outgoing Intel CEO Paul Otellini believes that the transition to 450mm wafers could virtually wipe out half of semiconductor companies.

Speaking at a tech conference Otellini said transitioning to 450mm will be costly, simply too costly for small fish.

“In general, every time there has been a wafer-size change in the industry, only half of [design and production] market players [survived],” said Otellini.

Naturally, Otellini is confident about the transition to 450mm and EUV manufacturing, since Intel is leading the way in cutting edge manufacturing processes and it has done so for years. Transitioning to 450mm will result in cheaper chips, something that Intel desperately needs to take on the ARM alliance in smartphone and tablet markets.

Of course, Otellini could be going into doomsayer mode just to scare smaller players and their investors.

More here.