Intel's Cost-Saving Move

By Steve Heller – Aug 26, 2013 at 5:00PM

NASDAQ: INTC

Intel

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$148B

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(1.77%) $0.61

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$35.11

Price as of April 25, 2024, 4:00 p.m. ET

Bigger wafers are the building blocks to lowering expenses down the road.

Intel (INTC 1.77%) recently broke ground on a new foundry that will be first to make use of the highly anticipated next-generation 450-millimeter wafer in a commercial setting.

After the initial investments are made, it's expected that Intel's capital expenditures and cost per component will decline significantly relative to 300-millimeter wafers. Down the road, this could lead to improved profitability, not to mention, better price competitiveness for Intel in the age of mobile computing. In fact, GlobalFoundries estimates that at the 22-nanometer level, a foundry could realize a 25% in cost savings per die.

In this Motley Fool Tech installment, tech analysts Eric Bleeker and Jamal Carnette sit down with Fool contributor Steve Heller to discuss this development.

Eric Bleeker, CFA, has no position in any stocks mentioned. Jamal Carnette has no position in any stocks mentioned. Fool contributor Steve Heller owns shares of Intel. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.