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I agree AMD is not Intel. I guess you have to trust that Lisa Su has some kind of strategic rational driving this, and I trust Lisa Su a lot more than I trust Pat G.
I think I understand the rational, you want to sell a system with an AMD CPU, and a bunch of GPUs for AI, where everything works together optimized by software, and you don't need to worry so much about supporting every single hardware/software combination.
I guess that makes sense.
However...
Personally, I don't like this kind of acquisition unless there is a strong strategic rational.
If AMD's bottleneck was getting themselves server design wins, it would make sense, but I feel like that's not the case. Maybe 5 years ago it was, but now all the hyperscalers are already supporting...
I totally agree.
The fabs at this point are a negative value contributor to Intel share price.
Somehow, Intel needs to exit the foundry business and focus on design. I'm sure it will be a painful transition but necessary.
Private equity would buy given the right terms. Look at GloFlo, it traded hands through private equity a number of times. The thing about private equity, they know how to make money off failing businesses.
Lots of employees = lots of people who Hock Tan can fire.
Intel is a smaller company with a captive customer base and bloated overhead costs.
AVGO market cap = $735b, INTC = $85.6b
It's not that big of a risk, they just need to get rid of the foundry side of the business, which they could probably sell to private equity. They can also finish spinning...
Let me clarify. I think Hock Tan is the right person to buy Intel, break it up, sell off the fabs and underperforming businesses, and purge the company of useless MBAs.
I've thought about this a bit.
Normally these shareholder lawsuits are just shakedowns that get settled for a few million dollars, with lawyers getting most of it... but Pat coming out and saying "I bet the whole company on 18A" basically opens up the door to legal discovery on how 18A is doing...
Yeah, I have seen the same thing happen at another company I worked at that had a voluntary departure. The company was shocked when so many high performers left (I am not sure what they were expecting - that the worst performers would self select out of the company?). Some teams lost 20% of...
One of the things I have said over and over on this form is that Intel still see's itself as the 800lb gorilla of semi conductors, when the reality is today they are just a chimp. As long as they fail to acknowledge the reality, they will continue to blunder.
People who follow me here know I've been bearish on Intel and the IDM 2.0 strategy since it was announced. I think a big reason the stock is down so much is not just because they are doing poorly, but doubling down on a terrible strategy.
TSMCs gross margins are above 50% and labor costs are dwarfed by equipment cost.
Achieving high yield and equipment utilization will be a challenge in the US, but if they are able to yield and keep the fabs utilized they will not have a problem making money.
For electric trucks, I think eventually you'll have greater movement towards them as batteries improve and prices continue to decline. It's not quite Moore's law but the cost/performance of batters has been steadily improving year after year, I think at around 7% a year, with some ups and downs...
Are you sure it won't happen?
Just as the West is trying to decouple it's supply chain from China, China is trying to decouple itself from Western technology. And China is decoupling it's technological reliance faster than we are decoupling our supply chain reliance. The biggest economic risk...
They are similar enough. Here is how high tech manufacturing works, regardless of if it is fabs or batteries or medical devices:
The most expensive cost is equipment depreciation, not labor. The most important KPI is OEE (Overall equipment effectiveness). OEE includes factors for...
