Thread regarding Intel Corp. layoffs

Bloviating isn't a good strategy. When Intel had a monopoly it didn't cause too much damage. Now, it just turns off potential customers and makes them very suspicious of signing up to a long term relationship.

The Chairmen of TSMC met Pat and said he was co--y and disrespectful. How many customers want to deal with a co--y and disrespectful CEO. Not too many.

Intel is in a FUBAR situation!

No technology leadership means internal products have inferior power to make up performance, and are far larger die with higher cost for product teams and Intel. Who would chose IFS for 7 or 4 or 3? Lagging node with inferior cost.

TSMC already has run likely a billion chips on their N4 and Intel has shipped what ? Will be the same for N3. Intel can claim first but will always be behind on yield learning and cost depreciations for all of Intels competitors. For Intel to compete they need to use TSMC too. Again what foolish company would pick IFS?

IFS makes a delusional spin of checking out each node with internal products. IFS get a 12 stepping SR while TSM gets Apple, AMD, Qualcomm, Nvidia, MediaTek and others. Tell me who is positioned better?

Pat’s play is to get subsidies all the fabs and spread FUD about supply chain from a democracy. It’ would be like GM and Ford spreading FUD about Mercedes or BMW to help them. But like GM Ford surprise Toyota Mercedes, BMW and Honda setup in America. Intel’s competitors can and do same as you can see with Samsung and TSMC.

Intel has no business angle for a win here. Desperate Hail Mary with zero chance of success long term. Of course CCP could invade Taiwan or feel like with all the restrictions it has to do something. There is no way in this interconnect world we are divorcing and separating supply chains. Look around where all the things you want is made. Now western world want to cut them off from all the things they want. Pat prays for a war and it will be FUBAR if it happens, even with that it won’t save Intel.

Intel needs to get rid of TMG and fabs to survive

@lxx

Intel doesn't run with bare bones. They can't tell bone from di-k.

BTW, isn't c) the same as selling TD and Fabs to TSMC?

My question to you is what would you do to recover the company's competitive position?

This isn't the right question. The problem is that underlying business model for Intel has to change. Why? Because each new process nodes requires huge investment and Intel doesn't have enough products to fill the fabs.

There are three options to fix this:

1. create new products and fill the fabs. No good. Intel has no track record for this.
2. do IFS. @Op points out that for Intel, this is nearly futile with lack of core competencies.
3. Intel could instead cut costs to the bone and spin off/ outsource manufacturing to TSMC

My gut tells me c) is the best option for shareholders. We are dealing with huge changes to Intel under any of these options. What isn't an option is for Intel to try and regain competitiveness and profits by just focusing on core processor legacy business. It is too late for that and the cost of each new process node is prohibitive.

Mlm no need explain to the peanut gallery not only you have to go down to their level you get defeated with experience and what about the smart people within Intel? what are they doing? Or is everyone d-mb? Pareto principle where the lunatics run the asylum?

I agree with others in this thread that this is a well thought out post but it still follows the format of most other posts: criticize the direction management has taken.

The company clearly needs to make major changes. It has lost leads over the rest of the industry in every area. My question to you is what would you do to recover the company's competitive position?

Potential customers will come and kick the tires and get a low bid from Intel and then take that to TSMC for a discount.

Even if Intel were to get a customer, the margins will be terrible.

For IFS to work, everything has to change. For IFS to fail, even 1-2 things going wrong will destroy shareholder value.

For these reasons, I don't recommend the stock.

It’s like dating no one wants to date Intel given a choice ugh

Thoughtful post, I wish you were on ELT to speak the truth

https://seekingalpha.com/article/4613872-intel-stock-intc-idm-2-at-risk

“The issue is the dynamic of having a manufacturing unit competing with internal and external customers for the business. What is most important to the manufacturing unit might not be the most important to the chip design units leaving a huge internal struggle.”

“Our view is that Intel won't achieve meaningful profit growth due to the business spinning their wheels changing the business model and only creating an illusion of progress while potentially creating an internal struggle.”

I would like to see ELT put your scorecard up at the next all hands meeting and discuss it honestly.

Intel needs cash to fund the strategy... should we expect more headcount cuts? dividend cut? more bonds issued?

Should I sell all my vested shares now or a little bit at a time?

This is a good post with serious inputs and thoughts. Intel will also need Foundry customer support experts capable of customer collaboration. This is very important to Foundry success.

🤣 Stu Pann

#3 is interesting. Recently, Intel said they would restructure manufacturing and start charging internal groups to use fab.

Most people don't know this but, when internal teams need to fix bugs they do priority shuttles to 'expedite' product changes. That behavior is extremely expensive and it will never work with outside customers. Customers don't want to get charged for Intel's mistakes and the certainly won't want their lots delayed because Intel bugs get priority shuttles.

This is just a simple example supporting what the @Op is saying. Intel is so far away from having a customer centric manufacturing process it is almost inconceivable to succeed at IFS moonshot.