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If your market strategy is underpricing the market leader so your customers can negotiate better prices with the market leader, you don’t have a sustainable business. And on to of that if your costs are even higher than the market leader you are really eff’d.
My personal belief is the lower...
I disagree that “not TSMC” is a market segment. If it was Samsung wouldn’t losing so many customers.
People who buy Mac aren’t doing so because it’s “not Microsoft”. People who drink Pepsi don’t do so because it’s “not Coke”.
I can’t think of a single market where anyone makes a purchase...
I am sure there is more to the Accenture deal than meets the eye.
Accenture is the worlds largest IT consultancy and now they are incentivized to sell Intel, so there is a conflict of interest built into this deal. It has the potential backfire on both Intel and Accenture.
Intel probably needs to make cuts, that's not really a point of contention.
My view is that these cuts is that they are part of an effort to make Intel's internal foundries cost competitive with TSMC, and if that's the case, it's an exercise in futility.
The reason that TSMC can operate it's...
LBT is making the same the same fundamental mistake as BK and PG by committing to the losing IDM business model. PG was a great leader with a bad strategy. People here seem to think LBT is going to be a better leader but he’s still got a bad strategy. Can you even consider someone a good...
Sounds like some McKinsey consultants went to Intel and told the board/CEO "Hey TSMC has 30% fewer foundry employee's than you do per unit of production"
Intel board/CEO says "How can we be competitive if TSMC can operate with 30% fewer employees, we need to do layoffs"
Intel does some...
Yeah exactly, you need to figure out headcount needs from bottom up. Problem is if you don't trust your managers that becomes impossible.
As you said, culture needs to be fixed first, but culture is really hard to change.
The way a lot of companies arrive at their head count numbers is they look at the best in class competitors and come up with some metrics. But the truth is it's not always comparable.
I think Intel is looking over at TSMC and what their headcount numbers look like to arrive at what they think...
There has been a lot of research on the topic, and the consensus is something like 4-8. I think 10 is probably too many people to be directly managing effectively.
I agree that in general good leaders are more effective with fewer reports.
If you compare a team of 5 vs 50 people, with 5 people you can get to know every person on your team, their strengths and weaknesses, what motivates them, their communication style, you know what everyone is working on...
It's unlikely anyone will leapfrog TSMC as a semiconductor foundry, just like no-one leapfroged Intel in PCs and no-one leapfrogged IBM in mainframes. At some point a new computing paradigm will come along (maybe quantum) as semiconductor based computing reaches it's limitations, and at that...
Monopolies are inevitable in Tech. They aren't necessarily bad.
Tech has winner take all dynamics, and having a monopoly is the prize for winning. And you win by being the best.
The thing about tech monopolies is they only get to be monopolies for a short period of time before some other...
Automation is hundreds of years old. Some jobs are automated away while new jobs are created. Over time and in aggregate you expect automation to increase labor productivity, not eliminate labor entirely. I don't think AI will be different in this regard.
$25 million for a billionaire is not a lot of money. And I'm not trying to say he does not want Intel to be successful or does not believe in the company. What I'm saying is there is no downside for him taking the Intel CEO job regardless of what happens, only upside. So there is no reason...
Honestly, as for why Lip-Bu Tan would join Intel even if he knew 18A has problems....
Helps to understand that Lip-Bu was in semi retirement mode. But some people don't actually like being in retirement and want a continued challenge. This job offers Lip-Bu a challenge and probably a 9 figure...
China is no longer a low labor cost country, believe it or not. Yes it's still much cheaper than USA, but more expensive than Mexico, India, Southeast Asia, and much of South America. China is competing with these countries for manufacturing as well. By global standards China is an...
South Korea is leading the world in Robot density, followed by Singapore and China. China is increasing it's robot density the fastest and doubled it's robot density in the last 4 years. Singapore is a bit of an outlier since it's manufacturing industry is relatively small...
AMD needed a fundamental business model change to come back. AMD would not have come back if they remained an IDM.
I think Intel could come back if they change their business model.
I think @MKWVentures probably has better estimates for this sort of thing.
My guess is for Intel Foundry to break even they are going to need a lot of external business, I think they will need 100% of Intel's internal business and that will probably only cover 50% of the financial needs of a...
