Intel Manufactures 99% Of Their Servers in Costa Rica

Intel has been in Costa Rica for ten years and makes increasingly more complex, expensive and most profitable servers right here in Costa Rica

Intel produces 99% of its server processors in Costa Rica and distributes them around the world. These processors are used in the aeronautics industry, banks, airports, stock markets and communication networks.

The servers’ market is strategic for Intel because it is one of the most profitable products pointed out Mohsen Fazlian, manager of Intel Costa Rica.

A server is a computer equipped with very powerful processors that executes highly complex task, in less time and more efficiently. Each server processor is valued between $500 and $4,000 in the market, according to its complexity, speed and performance.

A server, depending on the tasks it realizes, uses 2, 4, 64 or 128 processors in the same case, which raise its price to “thousands of dollars”, explained Fazlian.

That situation explains how attractive that market is for Intel with respect to other microchip families they also manufacture, for desktop and laptop computers and mobile devices.

This year, Intel will increase from 26 to 30 the number of products manufactured in the country. The four new microchips are from the Penryn family.

Hapertown, Wolfdale, Tigerton and Montvale are the names of each component, which are based on 45 nanometres (NM) technology, thinner than a hair which is one of the reasons why they are more efficient and less power consuming than its predecessors.

Talent in Costa Rica:

Intel Costa Rica will be the first facility manufacturing 45 NM units for servers, due to what a priority for Fazlian now is to consolidate the technical skills of Intel’s Costa Rican engineers.

“Years ago we decided Costa Rica would be the base for servers, partly due to the high level of the engineers”, emphasized Fazlian, who became manager of Intel Costa Rica last January, in replacement for Bill Abraham.

Intel Costa Rica exported more than $1,750 million last year, $306 millions more than in the 2005, among processors and other components called chipsets. In year 2006 they sent 80 million product units around the world. This year they expect to export 100 million components valued at around US$2 billion.

Intel Interview: The General Manager of Intel in Costa Rica is Iranian born, US citizen Mohsen Fazlian aged 40 who says that: “Investment will increase every year.”

Q: What’s the growth rate of the demand of server processors?
A: “Every year, the worldwide market of processors grows 10% and there’s a strategic interest in that market, not only from Intel but from other companies that also manufacture processors. We charge more for that kind of processors since it’s a higher performance product. As a result, the profit margin we obtain is bigger than in any other product, that’s why we focus on servers”

Q: Intel indicated the competence from AMD has affected the company. What’s your opinion about it?
A: “Competence is healthy because it forces us to be better. We think the best way to have our customers back is offering them better products.”

Q: What will be your priorities now that you assume Intel Costa Rica?
A: “In 10 years we effort to build up the confidence we have today as manufacturers of various complex devices. Technology will be even more complex in the future, so our emphasis is to strength that confidence, consolidate the technical skills of our engineers and extend our presence in the servers market.”

Q: Intel Costa Rica invests an average of $80 million every year. Will that amount be the same in the next years?
A: “We will do what we have to do to support the technology we have. Technology will become more and more complex, so the investments will be higher every time to accomplish the standards and goals we manage.”

Q: With the elimination of the free zones regimen…What’s the limit Intel would be willing to stand to continue here?
A: “Intel requires, at least, to maintain the current conditions, not because we think in a special incentive for Intel but because of a matter of strategic importance. We want the government to be ready to respond.”

Q: Will there be any impact if the CAFTA is not approved?
A: “Intel was in Costa Rica before the CAFTA and will continue in Costa Rica after the CAFTA. However, for the benefits it would bring we consider important its approval.”

Our thanks to our friends at La Nación – Costa Rica’s largest Spanish circulation newspaper for their permission use this article.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.