Intel’s CEO: ‘We are not in the top 10’ of leading chip companies

[Barnsley]

Window of opportunity!

Got ovens in FAB no?

 

[Artificer60]

I find it interesting that their is no mention of Tan saying anything about plans for the foundry business. I wonder if he didn't mention it or the Oregonian just didn't find what he had to say as juicy as his product related comments. This comment doesn't really tell me what to expect on the foundry front.

“Our number one priority is to make sure that our 18A is robust for our internal customer,” Intel’s own processors, Tan said this week. “And then second priority is starting to look at another, 14A, and that’s the next frontier.”

 

[hist78]

I find it interesting that their is no mention of Tan saying anything about plans for the foundry business. I wonder if he didn't mention it or the Oregonian just didn't find what he had to say as juicy as his product related comments. This comment doesn't really tell me what to expect on the foundry front.

“Our number one priority is to make sure that our 18A is robust for our internal customer,” Intel’s own processors, Tan said this week. “And then second priority is starting to look at another, 14A, and that’s the next frontier.”

For the next five years, Intel Foundry for external customers is probably not the first or second priority. The first priority is for the Intel Product division to regain competitiveness and revenue/profitability. The second priority is to restore Intel’s financial health, which has been partially impacted by the first priority.

 

[DanX]

In my view, Intel’s CEO is doing the right thing:
1. Assess a company’s condition is to break each division out along the industry chain and gauge their individual competitive strength.
2. Sales and marketing have weak competitive moats, so they will be outsourced.
3. The foundry is in the second tier, clearly lag behind TSMC and with no realistic prospect of closing the gap in the short term.( 3-5 yrs)
4. Its design teams are at best on par with AMD’s since they can both tape out in TSMC.

Solution:
1. First, build a design team that can match the team of AMD and Broadcom.
2. Identify a product breakthrough point.
3. Work with customers to shape the foundry’s positioning; in the end, it will most likely be spun off as a standalone entity.
4. Best case: After two or three years, rebuild an foundry advanced-technology team to reclaim first-tier status— need to be clearly ahead of Samsung.

 

[tooLongInEDA]

A concerning thing for Intel is by many measures they are no longer even as big as thier suppliers and they are much smaller than their customers. This is a company that used to love throwing its weight around, they could push back on suppliers, twist arms if customers and they weren’t shy about it. Even if Intel somehow turns around they will never be in that position of market power again.

I can't help seeing that as a good thing (so not "concerning" at all), both for the industry in general and for Intel.

 

[meo9725]

Still too little, too late. Intel Foundry needs to go. It is a flawed idea that will never work for Intel. And there's no need for it in current market conditions.

 

[meo9725]

Intel engineering needs to be thinned down by at least 20%, probably 25%. Intel has to make room for fresh blood. Tired and confused veterans need to move on. Tan's idea of letting the bottom quarter performers go and taking Intel back private is the only chance. Intel has close to zero chance surviving as a publicly traded company. It just isn't competitive enough to fight and win against the better capitalized and nimbler competitors.

 

[siliconbruh999]

Still too little, too late. Intel Foundry needs to go. It is a flawed idea that will never work for Intel. And there's no need for it in current market conditions.

that's not true

 

[osnium]

Intel engineering needs to be thinned down by at least 20%, probably 25%. Intel has to make room for fresh blood. Tired and confused veterans need to move on. Tan's idea of letting the bottom quarter performers go and taking Intel back private is the only chance. Intel has close to zero chance surviving as a publicly traded company. It just isn't competitive enough to fight and win against the better capitalized and nimbler competitors.

If Intel goes private, would private investors have the patience to deal with the fabs or would they need to get shut down?

 

[siliconbruh999]

If Intel goes private, would private investors have the patience to deal with the fabs or would they need to get shut down?

First thing for them to take it private they need to have majority