News Intel 2Q24 Financial Results

[Joe NYC]

2 PM PST ??

Typically, 4pm to 5pm Eastern time for posting the earnings release on the web site, and then, conference call about half an hour later.

 

[Hitman928]

Yea, that article was long on opinion, assumptions and innuendo, but pretty short on hard facts. It certainly seems unlikely Intel would get such a large discount, and even less likely that TSMC would rescind it because somebody made a comment that offended them. If the discount was "real" wouldnt there have been some sort of contract signed that could not be voided?

From what I've heard, Swan and maybe even Krzanich had been building a relationship with TSMC as they saw Intel needing to transition to an outside foundry in the future. Under Swan specifically, they had started real negotiations and business dealings, with Swan seeming to favor an eventual move, in full or at least large part, to TSMC. This is where the first deal for Intel to do large volumes at TSMC began. It wouldn't surprise me at all if TSMC was offering Intel a large discount (probably not 40% but significant) to get their business, with Swan expressing a real interest in using TSMC long term. However, the board didn't like this and wanted to see someone who would work and invest in bringing Intel's fabs back to being a world leading foundry. This is a big part of why he got fired.

So, Pat comes in and tells the board that he sees a path for Intel to become the best foundry in the world, not just for Intel, but one that customers will flock to. The board likes this and hires him as CEO. Pat starts trumpeting his plan and talking about retaking foundry leadership and down playing TSMC's position as the now world leader in foundry tech. TSMC doesn't like this, not only because they find it insulting to their hard work and leadership position, but also because they don't want to just act as a crutch for Intel while Intel figures out its foundry issues and then become a competitor. With Swan, the vision was a slow transition to TSMC being the main foundry (or at least a substantial 2nd source) for Intel, but then Pat came in and killed that vision and started publicly dancing on its grave. That obviously soured the relationship with TSMC and whatever deal they had worked out to that point. Eventually, Pat had to make an "emergency" visit to Taiwan to try and smooth things over.

That's kind of what I've gathered from different whispers I've read and heard. Nothing is direct knowledge and some is filtered through some disgruntled ex-employees, so believe as much of it as you want. For myself, I don't believe the Reuter's article is fully accurate, but it's probably not that far off base either.

 

[adamge]

Hitman, my problems with accepting your story:

For the first many years of Pat's reign, all of the biggest Intel news was about Intel building up and out its fab facilities. This included new EUV machines (first in the world!), new facilities, expansions on facilities.

Combine that with serious Intel/USGOV uptake and deal signing on CHIPS Act that committed them to being even BIGGER in the fab business for decades to come.

To me, they haven't behaved like a company that was ever, at any point in their outward actions, trying to divest and minimize their fab business.

 

[Hitman928]

Hitman, my problems with accepting your story:

For the first many years of Pat's reign, all of the biggest Intel news was about Intel building up and out its fab facilities. This included new EUV machines (first in the world!), new facilities, expansions on facilities.

Combine that with serious Intel/USGOV uptake and deal signing on CHIPS Act that committed them to being even BIGGER in the fab business for decades to come.

To me, they haven't behaved like a company that was ever, at any point in their outward actions, trying to divest and minimize their fab business.

Not sure why you think that contradicts what I said? I said when Pat came in he started trumpeting his plans for the foundry right away. . .

 

[adamge]

Fair, I did not do a good job thinking this through. We are in alignment.

I wasn't paying attention to Intel during the Swan era. I've been wondering what outward actions suggest that Intel was trying to scale back on their fabs. I would be interested in what others can point to. The only thing I can think of it, the timing does appear to coincide with Intel losing "process leadership" (as they say). So we could say that they lost it because they didn't want it and stopped trying to hold it.

 

[Hitman928]

Fair, I did not do a good job thinking this through. We are in alignment.

I wasn't paying attention to Intel during the Swan era. I've been wondering what outward actions suggest that Intel was trying to scale back on their fabs. I would be interested in what others can point to. The only thing I can think of it, the timing does appear to coincide with Intel losing "process leadership" (as they say). So we could say that they lost it because they didn't want it and stopped trying to hold it.

Here's a big clue, this is Intel's R&D spending over the last 7 years.

 

[DavidC1]

Here's a big clue, this is Intel's R&D spending over the last 7 years.

View attachment 110742

Also supported by leaked roadmaps. It seems they are doing it anyway with the 20A/18A fumble but Arrowlake-H with GT3 320EU graphics was planned for 2023 on N3.

Intel Arrow Lake-P with 320EU GPU confirmed by a leaked roadmap, targeting to compete with Apple 14" premium laptops - VideoCardz.com

Intel Arrow Lake-P GPU confirmed feature up to 320EUs Just a few days ago Intel officially confirmed it will launch Arrow Lake architecture by 2024. This successor to Meteor Lake is now confirmed to utilize a combination of three process nodes. It will also take advantage of Intel’s new die...

videocardz.com

There were also many articles calling for Intel to spin off their fabs. Lots of them are investors so eventually Intel has to take that into consideration. Then Gelsinger got hired.