Intel Plans On Ramping Up “Outsourcing” To TSMC, Orders Exceeding $19 Billion
Let’s be honest x86 is big business but when you can’t make it internally what do you do watch AMD I. The rear view mirror ?
https://wccftech.com/intel-plans-on-ramping-up-outsourcing-to-tsmc-orders-exceeding-19-billion/
bah ha ha ha ha hah... good laugh out of this one,
"Tremendous value can get unlocked by splitting up design and manufacturing."
The x86 designs are commoditized... no value there. The Intel manufacturing is behind, is a high cost producer, has no ecosystem, is decades behind TSMC. High cost structure. Weak management team with no understanding or experience in semiconductor manufacturing (Stu Pann 'mr x86 pricing').
@gna+1opu7Ysa There is little value in manufacturing with Intels high cost low customer service Fabs. TSMC already has had years and millions of wafers of cost and depreciation baked into their 7, 5 and 3 nm and their 2 and 1.4 will have huge scale that drives fast yield learning and cost advantages Intel IFS can’t hope to match.
It is why Pat is chasing subsidies to enable the money losing builds.
X86 used to have value but Lisa and AMD have Intel in the rear view and continue to pull ahead riding TSMC that there is rapidly diminished value in it.
If you read between the lines it looks like Intel is prepping for a fabless future as IFS looks increasingly likely to fail.
Tremendous value can get unlocked by splitting up design and manufacturing. Manufacturing can get split off to fab trailing edge chips like glofo and the others. TSMC will remain king of leading edge.
Intel’s gross margins are down due to fab underutilization.
Fabs are a capital-intensive high fixed-cost business that make no sense when you cannot amortize those costs with stagnant volumes.
Maybe it’s you who needs a financial education.
Dropping the fabs (spin out / sell strategy) would significantly improve Intel margins. Why do you think Intel has high employee count vs AMD or Nvidia? It’s the fabs dvmmy.
With a foundry strategy, Intel can dynamically scale volumes to match market conditions and not take on huge capital allocation risks.
Foundry also spreads the cost of fab capex/R&D across many industry players instead of concentrating on a single player who may fall behind. Aggregate investment will outperform any single player.
It just makes so much sense that you can bet the boneheaded execs at Intel will reject it.
Wow more than 1/3 of Intel revenue is outsourced to their biggest competitor.
I am sure TSMC laughing all the way to the bank. Pat tho LS he has a clue to what AM, Nvidia, Apple, MediaTek, Qualcomm, Broadcom and others pay to TSMC. All he knows is his own cost, what a fool he makes himself and Intel look like with his comments
“Remember, I'm a customer of TSMC. So I know exactly what their wafer costs are, what their wafer ASP is, they're presenting to their N5 customers, to their N3 customers, their budgetary for N2. We know what the target is, right, for that.”
yawn! you guys need a hobby, go watch some po-n or something... this whine gets stale
Pat,David and the rest of the ELT and BoD is setting the company on a path of ruin.
Indications are Intel having serious problems with yield and execution.
Intel's entire strategy is built on vertical integration and process leadership.
This is clearly an indication that the company is in deep trouble.
You don't spend 5 billion a quarter on fab build out and at the same time send your production to TSMC.
If Intel were to go fabless you have to write off all the fabs and the market cap of the company will drop by 75%.
This is some kind of sh-t show.
You are clueless. Intel using TSMC isn't bullish.
What do you think it does to gross margins.
Intel doesn't have enough capacity to fill it's fabs and IFS is draining cash.
Stick to your day job kid.
Careful about the shorts.
Intel using more TSMC is extremely bullish.
Look at the valuations of Intel’s fabless competitors.
TMG is a boat anchor pulling down the ship.
The words don't match the action. If our fab is so good then why aren't we eating our own dog food? Keep the money in-house, run a decent number of wafers through to improve yield, get some ROI on the cost of building the fabs, etc., like a smart business would do.
What potential IFS customer will believe PG on the claim that IFS is equal or better than TSMC, when Intel runs to TSMC to get its own chips built?
Freaking sad house of cards.
Whoa... this is a really big deal... read this,
"The analysis comes from the banking firm Goldman Sachs, stating that the outsourcing could amount to a total of $18.6 billion and $19.4 billion, in 2024 and 2025 respectively."
So roughly 30% of revenue would go to TSMC for production? There is more to this story... Is Intel trying to secure capacity and throw in the towel with IFS? Why would Intel send this much production to TSMC otherwise?
Holy cr-p, this is really bad.
I added to my short position on Friday after Pat's disclosure of 'big customer'.
While Pat is out talking a big game they are increasing orders to TSMC... and the analysts continue to reduce Intel forward earnings estimates...
Pat says he is beating expectations... easy to do when you drop the bar so far... No, Intel can't keep us the game more then a few more quarters...
50 Millions shares have been shorted so far.