We learned that Intel plans to make its Larrabee graphic cards in its own FABs. This will give Intel an edge as the prices of these chips will be better than TSMCs and if the yields are good such a chip / card could end up with very competitive prices.
Nvidia is earning way too much on their chips and ATI’s partners cannot get enough margins out of their sales and we believe that this is the strategy that Intel plans to use.
We believe that Larrabee starts with 65 nanometre process but Intle will work hard to get it to 45 nanometre and possible have the chance to beat both Nvidia and ATI to it. In intel’s FABs there is no half node process and Intel will probably go from 65 directly to 45 nanometre.
If all goes well Larrabee will be launched in 1H 2008 with whole range where the high end will cost below $300.