I mean, "IDM2.0" is what has put the fabs in a position to be sold off. Pat's focused on making them palatable to outside customers, pushing hard to get to a competitive process with 18A, splitting it up internally from the rest of Intel so it's firewalled and their competitors feel safer about sending their cutting edge designs to Intel. A complete spin-off was always a likely outcome of this, and Pat knew it at the time (regardless of what he said in public).If this actually happens, then Gelsinger is going to be kicked out. That was pretty much the deal to get the bonus and for him coming in, the IDM 2.0 strategy and getting leadership all over again.
Then I assume they'll bring in CEOs for the transition into full splitting of the two companies, and probably like many others, after majority of the 100K employees are laid off permanently it'll either end up in shade of both design and fab side operating for a while or patent vultures coming and stripping it off completely.
I mean, "IDM2.0" is what has put the fabs in a position to be sold off. Pat's focused on making them palatable to outside customers, pushing hard to get to a competitive process with 18A, splitting it up internally from the rest of Intel so it's firewalled and their competitors feel safer about sending their cutting edge designs to Intel. A complete spin-off was always a likely outcome of this, and Pat knew it at the time (regardless of what he said in public).
I see it as a split and then intel being the primary customer. Maybe a wafer agreement like glofo had with AMD?Intel Foundry doesn't have any real customers (other than Intel itself). Certainly nothing capable of sustaining the Foundry.
My guess is what happens is that the Foundry ends future node development beyond 18A and they try to get a couple small customers to use the existing nodes, like what GloFo does.
Intel Foundry doesn't have any real customers (other than Intel itself). Certainly nothing capable of sustaining the Foundry.
My guess is what happens is that the Foundry ends future node development beyond 18A and they try to get a couple small customers to use the existing nodes, like what GloFo does.
I see it as a split and then intel being the primary customer. Maybe a wafer agreement like glofo had with AMD?
I see it as a split and then intel being the primary customer. Maybe a wafer agreement like glofo had with AMD?
I think that product wise, they need to set a couple of target for a category. Lets start with desktop chips. so lets say they set a target of 120 watts. Build the best core that can fit 16 cores in that WITH SMT and avx-512 (in other words matching Zen 5.) Starting with only those as target build a new core from scratch. then move down from there to 12,8,etc. Then price wise set the lowest they can afford to build it and add a REASONABLE amount for research. See what they end up with. Then go from there.Intel can still recover if they go into extreme low power mode. Cut unnecessary expenditures (and I mean the really unnecessary ones that finance people don't tend to think about, like fancy new hardware for engineers/managers etc.) and exclude anything from cuts that is necessary for employees to function properly. Try as much as possible to operate on a shoestring budget. Even turn off half the lights if that helps. If some employees are willing to work from home for a slight pay cut, let them. That will save on electricity/coffee and reduce any other expenses associated with those employees being in the workplace. Be smart about the whole thing. Pretend like it's the end because only the paranoid survive. And while they are doing all this, hopefully they lose their ego too and reflect introspectively on what they did wrong and what they can do better now.
Frankly, I don't see any hope for Intel at this time. They actually made a decent Xeon, except it does not have the features that current servers need. No hope at all for the desktops. Laptop chips will not save a company that big, they need more. And the Raptor lake problem may just be starting. The lawsuits are already building.Is Intel the Next Dow Dropout? The Alarming Signs Investors Can’t Ignore.
Is Intel the Next Dow Dropout? The Alarming Signs Investors Can’t Ignore.
Is Intel (NASDAQ:INTC) underappreciated, or just underwhelming? Investors should be cautious when a stock fails to rally after positive news. Get the full story on troubled Intel stock before jumping in. We’re giving Intel a “D” grade and a vote of no-confidence. Ask yourself a few questions...finance.yahoo.com
If that happens their stock will plummet. And I mean by the real definition of plummet not the politically correct wording people tend to use. It'll go to under $10. Which will cause management to make panic decisions which will guarantee the spiral.
RIM during it's decline made braindead decisions, gutting the most profitable and promising part of it's business. In panic, they all make the decisions to cement it's death.
That's really not the issue.Frankly, I don't see any hope for Intel at this time. They actually made a decent Xeon, except it does not have the features that current servers need. No hope at all for the desktops. Laptop chips will not save a company that big, they need more. And the Raptor lake problem may just be starting. The lawsuits are already building.
One does not exclude the others.That's really not the issue.
They're just running a very capex-intensive biz in a really tight, really competitive environment.
It's pretty much the exact issue. A good Xeon won't stop fabs from bleeding gigacash. Intel alone isn't enough to sustain their node roadmap anymore. They need external customers that pay real margins and they just aren't materializing so far.One does not exclude the others.
Intel's like the annoying stupid girl who keeps whining why she can't have a stable relationship and refuses to see what she is doing wrong.As the old joke goes - Intel does not have issues, they have a subscription.
Yeah, their "experts" were complacent and ignored the writing on the wall even when TSMC was raking in billions and pretended that their chips would always stay in demand despite them being on a lousy process node. Then AMD and Apple happened to them and they hurriedly tried to put together a competitive node parity plan but that was always bound to fail because TSMC did the hard work while Intel was enjoying the good life from their previous hard work and their anti-competitive practices. They got what they deserved. It's a lesson for everyone, from companies to individuals. No one is too big to fail. The end will come if you don't take steps to avoid it.Intel alone isn't enough to sustain their node roadmap anymore. They need external customers that pay real margins and they just aren't materializing so far.
Can you be more specific about that?They actually made a decent Xeon, except it does not have the features that current servers need.
Xeon 6 the article said. But NO avx-512,, NO SMT, and I am sure a lot more is missing. But in the benchmarks it came within 10% of Bergamo. Not sure of the power usage, regardless of ratings though. It didn't measure actual.Can you be more specific about that?
EMR or SRF?
What features would it need?
Maybe in the commercial world but hyperscalers certainly do, Bergamo was built based on their requestsXeon 6 the article said. But NO avx-512,, NO SMT, and I am sure a lot more is missing. But in the benchmarks it came within 10% of Bergamo. Not sure of the power usage, regardless of ratings though. It didn't measure actual.
Edit: The part about "not having the features needed" is also backed up by the statement by quite a few, that "nobody wants an e-core server" or something to that effect, as sales have backed up that statement. They want full featured CPUs.
You are not wrong. But if you don't think this is death by 1000 cuts, you are being myopic.It's pretty much the exact issue. A good Xeon won't stop fabs from bleeding gigacash. Intel alone isn't enough to sustain their node roadmap anymore. They need external customers that pay real margins and they just aren't materializing so far.
It's more than mini cuts now. It is full blown punches and jabs.You are not wrong. But if you don't think this is death by 1000 cuts, you are being myopic.
When I listened to that stock discussion @Joe NYC linked, and the analyst said his hot take was Intel basically said come back in 2030, I literally was like 👀It's more than mini cuts now. It is full blown punches and jabs.
If the stock drops further and gets delisted from DJI, then the liquidity will plummet and price will follow. Then they'll make even more panicked decisions which will guarantee enough of a decline to enter obscure stock territory where penny stocks play in.
The die has been cast already. And they would have been in big trouble even if there were positive future signs everywhere. Unfortunately they don't. Sometime probably in 2028 they'll go the route of RCA.
-If they didn't have the Raptorlake debacle I might have thought otherwise
-If the macroeconomy isn't so low that gutters look good, then I might have thought otherwise
-If their own volume projections about future processes showed better charts I would have thought otherwise
Sept 1 (Reuters) - Intel CEO Pat Gelsinger and key executives are expected to present a plan later this month to the company’s board of directors to slice off unnecessary businesses and revamp capital spending, according to a source familiar with the matter, as they try to revive the once-dominant chipmaker's fortunes.
I would be surprised if it remains at just Altera. How much can they sell for? And the article isn't even sure when Altera is going to be sold.The plan will include ideas on how to shave overall costs by selling businesses, including its programmable chip unit Altera, that Intel can no longer afford to fund from the company’s once-sizeable profit.
Gelsinger and other high-ranking executives at Intel are expected to present the plan at a mid-September board meeting, the same source said.
The proposal does not yet include plans to split Intel and sell off its contract manufacturing operation, or foundry, to a buyer such as Taiwan Semiconductor Manufacturing Co., according to the source and another person familiar with the matter.
Yea some people are calling for resignation of Gelsinger now. Morgan Stanley and Goldman Sachs to know what business to sell? Do they even have a clue of what they are doing at all?!In addition to the CEO and executive plans, Intel has retained Morgan Stanley and Goldman Sachs to advise the board on what businesses Intel can sell and what it needs to retain, according to two sources with knowledge of the company's advisory plans.
Exclusive: Intel CEO to pitch board on plans to shed assets, cut costs, source says
Yea some people are calling for resignation of Gelsinger now. Morgan Stanley and Goldman Sachs to know what business to sell? Do they even have a clue of what they are doing at all?!