Thread regarding Intel Corp. layoffs

Pat’s plan will fail and more layoffs will be the result

Pat talks a big talk about returning to technology relevance in a couple years as well as building a competitive Foundry operation to offset the incredibly high cost developing leading edge silicon and outfitting prohibitively expensive manufacturing.

He makes lots of noise about return to historical strong Intel culture and execution.

What is lost on Pat, the BoD and ELT is they missed the most important two two things they need address that make all this IDM and IFS so flawed.

If you study many technology failures as well as companies that recover. None of the success were about technology nor execution or culture. Matter of fact almost every spectacular failure had nothing to do with not having technology or not execution. It was about failure to understand and address the competition or forgetting about the economics and business it was in or entering.

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Post ID: @OP+1l1WmBYg

9 replies (most recent on top)

PPAC is important and all your competitors and buyers have access to 4nm and 3nm and you are stuck on 14nm for 7 years it’s a problem.

Did you even see the reviews on the power consumption of Intel leadership products. Also larger die means fewer die / wafer, yeah the fab and wafers are cheaper but nothing more competitive than the next node due to die scaling, power and performance improvements!

No raise for you @1jgh+1l1WmBYg

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Post ID: @1zic+1l1WmBYg

Good products don’t need latest technology node. Many high volume products are still made on 22nm+ processes. Companies like Texas Instruments are humming along with products fabbed on old nodes.

Rather than competing with others on process technology nodes, companies should collaborate on development on new process technology and share the benefits while differentiating with product designs.

There is a huge wastage of capital by semi-conductor companies and at top of this wastage is Intel.

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Post ID: @1jgh+1l1WmBYg

More layoffs are inevitable. Really short sighted to do the paycuts now to save q1. It's not really saving jobs, it's just buying time

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Post ID: @1bvz+1l1WmBYg

I agree, in such time times, ELT need to give positive momentum to teams to be successful. However pay cut was exactly opposite. I don't see any more that excitement in teams

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Post ID: @1skf+1l1WmBYg

@1rjp+1l1WmBYg Well said and why we both know Intel sadly with IDM and IFS strategy will be a painful decline that distracts all and sucks morale of everyone. A sad ending, doesn’t have to be like this but here she have Pat and a sorry BoD

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Post ID: @1dni+1l1WmBYg

PC revenue drop is mostly the economy- at least in consumer PCs.

We have data from AMD and Apple that show similar levels of Armageddon. The root cause was overbuying of consumer PCs during the pandemic. This pulled demand a few years forward and now we’re seeing the very predictable dip.

Consumer PCs are not a growth market, despite what Intel claims. In fact they are flat to declining and have been for well over 12 years now for anyone that cares to look at actual data.

Tactically, Intel had to initiate a price war to fend off AMD from taking too much share in the last quarter or so. Allowing AMD to take too much volume really starves Intel and so part of the revenues drop was due to ASP declines.

The other market - server, is 100% an Intel issue. They have no competitive products for at least 2 years. It’s actually really debating they can ever catch AMD there. Due to the high margins, AMD is focusing most of their effort on that market and is really crushing Intel there.

The hard fact is that PC and server is too small to advance leading edge node development at scale. Not enough dollars to make fab investments worth it. Intel pretty much is forced to go the foundry route but they are so far behind and so ridiculously under capitalized that it’s hard to see how they catch up. Even if they reach parity on technology, they don’t have the money to be cost effective with the economy of scale required to operate a high volume foundry.

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Post ID: @1rjp+1l1WmBYg

If you want to survive in manufacturing and be in top 3, you need to scale with leading edge. Or else, its a slow death.

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Post ID: @1fig+1l1WmBYg

Nor does he have a couple of years to keep failing at this rate UNLESS he is highly subsidized

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Post ID: @1vfa+1l1WmBYg

One thing I am not able to understand is the ye drop in revenue is because of PC customers inventory correction or because AMD took away the market share ?

If it is former then likely demand May return in future but if later then we are in deep trouble

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Post ID: @1mwl+1l1WmBYg

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