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<a href="http://www.accessmylibrary.com/article-1G1-105998243/want-build-chip-plant.html" title="Facts and information about Want To Build A Chip Plant? Find Partners; Tough To Go It Alone; With costs over $2 bil, only Intel can afford building its own plant.(INTERNET & TECHNOLOGY)">Want To Build A Chip Plant? Find Partners; Tough To Go It Alone; With costs over $2 bil, only Intel can afford building its own plant.(INTERNET & TECHNOLOGY)</a>
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Want To Build A Chip Plant? Find Partners; Tough To Go It Alone; With costs over $2 bil, only Intel can afford building its own plant.(INTERNET & TECHNOLOGY)
Byline: JAMES DETAR
Semiconductor companies are used to jumping high technology hurdles. But one obstacle is too high for most firms.
It's the cost of a new chip.
A chip factory costs $2 billion plus. And the cost of designing and manufacturing chips keeps going up. As a result, analysts say, the list of chipmakers that can afford to build these large chip plants is down to one name: Intel Corp.
Intel is by far the world's biggest chipmaker in sales. It can afford to invest the capital needed for research and development, as well as new manufacturing facilities.
For everyone else, forming alliances is the only way it's going to get done, analysts say.
On Aug. 27, three of the top 10 semiconductor sellers said they've achieved the first milestone of a recently announced five-year joint venture.
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