The recession caused fab tool vendors to de-accelerate their investments and programs in 450mm. As a result, 450mm production has been delayed at least to 2017 or 2018, said Trevor Yancey, an analyst with IC Insights.

The fab tool industry has undergone a sea of change...

Intel is yet to be much of a player in the booming tablet and smartphone spaces, a concern for industry observers in the long term. However, for now the burgeoning markets are helping drive demand in some of Intel's traditional businesses.

The deal is the largest takeover yet by Qualcomm. It also comes on the heels of Intel's US$1.4 billion purchase in August of Infineon's wireless chip business, which competes with Atheros. Many industry analysts believe Qualcomm's takeover of Atheros is the first of several potential deals in the semiconductor industry this year.

Intel will receive a grant from the Israeli government to build a 12-inch plant dubbed Fab 28 in Kiryat Gat. Intel promised to employ 3,100 employees at the fab and boost R&D investment.

Intel was expected to be a capital spending and production partner in the Singapore fab. However, Intel "is not participating" in terms of capital spending in the Singapore fab, said Micron CEO Steve Appleton. Still, over time, analysts said that Micron will go it alone in NAND and without its partner, Intel.

The chips will be used in "premier" smartphone brands, Otellini said today at an investor conference in San Francisco. He declined to name any customers.

Jobs is recruiting lawyers who have fought for and against some of the world's largest companies, including Microsoft, Intel and Broadcom. Broadcom won a patent dispute with Qualcomm last year that ended with Qualcomm paying $891 million in cash over four years.