Intel needs to start moving its mainstream products to TSMC ASAP. Once a good engagement with TSMC is established, they must spin off TMG. There is no other option.
This will immediately drop the market cap in half.
No CEO would want to take this on, which is why they are having trouble finding a good external candidate. The new CEO is going to have to break up this once iconic company.
I having been eaying this for 5-6 years now in TD.
Everyone told me I was full of it.
It is actually happening now, we all knew how relaxed and lazy we had become. It was only a matter of time before the others China, TSMC, AMD, ARM, woke from the slumber and "fear" of chipzilla.
BK said we are not a chip company moving foward. Be prepared for a TMG spinoff like AMD did.
Boosting the jumbers now with shedloads of good margins production and show some decent 10nm numbers to show promise and boom it will be gone...
TSMC did the worldsmobile volume on 10nm last year and now moving to 7nm. They would be so happy to leverage that to sell capacity to Intel at far cheaper cost than TMG 14 and 10. As if as the die is TSMC knows volume far more than TMG
It would a crazy idea to assume TSMC have enough advanced node capacity to make key parts for Intel and charge small % of profit. One could wish mobile phone volume go down dramatically. Probably, it could be easier to sell part of the company to TSMC. It is very sad to see great talents, technologies, and culture ruined by some of the empowered leaders in the past 15 or more years - many people still respect old Intel trained CPU and process gurus, including TSMC guys.
Intel can still survive and make $ by cutting down growth hypes and low-return businesses, me-too investments, some management and R&D, ego of owning world's #1 over-aggressive technology, and most importantly, get rid of fat-check magic-trick-seller leaders and board members.
Without a big cancer surgery, Intel would not come back to its golden days - those fat-check s---ers would love to sip out as much juice of this company and put the fake achievements on resumes - if Intel's old bosses can hire those smart evil s---ers, you can imagine other companies might be that stupid, too.
Agree with @kfj
When TMG offered superior process the value to TMG was high. Today TSMC has rode the mobile revolution to scale larger than TMG and technology superior
Today TSMC offers more advance technology, better PDK and huge scale and cycle time superior TMG.
The intel product groups that went all in on TMG are total handcuffed and now all products are tapped by 10nm FUBAR while AMD and others just wave as ride TSMC.
TMG is nothing but a boat anchor now. Even 14nm hasn’t delivered.
Anyone in TMG with any pride should feel embarrassed and pull out the swords
I'm not quite sure that divorce with TMG would solve the problems, unless this is a part of a bigger strategy.
The problem is in corporate culture and degrading level of technical depth. The most talented engineers are leaving the company. The development is being moved to lower cost locations (e.g., https://www.indiatoday.in/business/story/tech-giant-intel-to-set-up-development-centre-in-hyderabad-1385512-2018-11-10). Old traditions are being broken down, especially when projects are being moved to another country.
That's essentially what AMD did.