Intel Corporation (INTC) To Produce 9 Million Cloud Server Custom Chips in 2015


In an article on New York Times, it was reported that Intel Corporation (NASDAQ:INTC) will produce mass level customized chips for Cloud systems in the coming year. Before that, Intel used to ship semiconductor chips for both user-level and business level entities. The increasing penetration of Cloud platform both in mobile and PC industry has increased the demand of customized solutions. Intel Corporation (NASDAQ:INTC) X-86 architecture has created a massive market and customer base for the big computing players.

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According to the source, Intel Corporation (NASDAQ:INTC) sells more than 18 million data center chips and other normal chips each year. By the next year, more than half of the chips will be open for customization. That means that corporate entities and businesses will be able to get Cloud based system on their Intel hardware on demand.

Head of Intel Corporation (NASDAQ:INTC) data center business Diane Bryant thinks that public Clouds are in a dire need of customization. AWS uses a million servers and they need customization at every level to get the best results, said Bryant. Twitter, Microsoft, Facebook and Baidu are all public level Cloud systems and the power of customization will leverage the industry. Intel Corporation (NASDAQ:INTC) is optimistic about monetizing this Cloud domain.

Intel Corporation (NASDAQ:INTC) can come up to the expectations of the industry when it comes to Cloud hardware customization. For example, eBay used Intel chips on demand and asked the company to make chips that are more heat efficient for their hyper cooling server system.

As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 18 million shares in Intel Corporation (NASDAQ:INTC).

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