Intel 2014 Annual Report Download - page 16

Our products are typically manufactured at multiple Intel facilities around the world or by subcontractors. However, some products
are manufactured in only one Intel or subcontractor facility, and we seek to implement action plans to reduce the exposure that
would result from a disruption at any such facility. See “Risk Factors” in Part I, Item 1A of this Form 10-K.
Research and Development
We are committed to investing in world-class technology development, particularly in the design and manufacture of integrated
circuits. R&D expenditures were $11.5 billion in 2014 ($10.6 billion in 2013 and $10.1 billion in 2012).
Our R&D activities are directed toward the delivery of solutions consisting of hardware and software platforms and supporting
services across a wide range of computing devices. We are focused on developing the technology innovations that we believe will
deliver our next generation of products, which will in turn enable new form factors and usage models for businesses and
consumers. We focus our R&D efforts on advanced computing technologies, developing new microarchitectures, advancing our
silicon manufacturing process technology, delivering the next generation of platforms, improving our platform initiatives,
developing new solutions in emerging technologies including memory and the Internet of Things, as well as developing software
solutions and tools. Our R&D efforts are intended to enable new levels of performance and address areas such as energy
efficiency, system-level integration, security, scalability for multi-core architectures, system manageability, and ease of use.
As part of our R&D efforts, we plan to introduce a new Intel Core microarchitecture for desktops, notebooks (including Ultrabook
devices and 2 in 1 systems), and Intel Xeon processors approximately every two to three years and ramping the next generation
of silicon process technology in the intervening periods. We refer to this as our “tick-tock” technology development cadence, as
illustrated below.
Tick Tock
32nm
2nd and 3rd generation
Intel
®
Core™
processor families
Tick Tock
22nm
4th and 5th generation
Intel
®
Core™
processor families
Tick Tock
14nm
Intel microarchitecture
code-named “Skylake”
Tick
10nm Increased
performance, new
capabilities, energy
efficiency, and form
factor advances.
Manufacturing process technology Microarchitectures
Tock
Advances in our silicon technology have enabled us to continue making Moore’s Law a reality. In 2014, we began manufacturing
our 5th generation Intel Core processor family using our 14nm process technology. We are currently developing our
next-generation Intel
®
microarchitecture, code-named “Skylake,” using our 14nm process technology, which we expect to release
in the second half of 2015. We are also developing 10nm manufacturing process technology, our next-generation process
technology.
We have continued expanding on the advances anticipated by Moore’s Law by bringing new capabilities into silicon and
producing new products optimized for a wider variety of applications. We have accelerated the Intel Atom processor-based SoC
roadmap for ultra-mobile form factors, including tablets and smartphones, as well as notebooks (including Ultrabook devices and
2 in 1 systems), the Internet of Things, and data center applications, from 32nm through 22nm to 14nm. Our Intel Atom
processors for ultra-mobile form factors and the Internet of Things are transitioning to the same process technology as our
leading-edge products. We expect that this acceleration will result in a significant reduction in transistor leakage, lower active
power, and an increase in transistor density to enable more powerful, feature-rich smartphones and tablets with a longer battery
life. The Intel Quark SoC is an ultra-low-power and low-cost architecture designed for the Internet of Things, from industrial
machines to wearable devices.
With our continued focus on silicon and manufacturing technology leadership, we entered into a series of agreements with ASML
Holding N.V. (ASML) in 2012, certain of which were amended in 2014 to further define the commercial terms between the parties.
These amended agreements, in which Intel agreed to provide R&D funding over five years, are intended to accelerate the
development of extreme ultraviolet (EUV) lithography projects and deep ultraviolet immersion lithography projects, including
generic developments applicable to both 300mm and 450mm.
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