Thread regarding Intel Corp. layoffs

This isn't good.

Based on some calculations I just ran, Intel doesn't have sufficient cash to both purchase / outsource current designs to TSMC .AND. fund new process/fab build out for IFS.

The amount of cash needed is simply not something Intel can fund out of margins being generated.

The options are:

1. scale back on IFS, we cannot use the 'if we build it, they will come' approach
2. raise large sums of additional debt and/or equity from capital markets (very expensive).
3. split the firm, give up IFS (10 - 15 years to break even won't cut it with investors).

Of course Intel finance has already run scenarios with high med and low PC recovery and revenue projections for IFS. If my analysis is wrong, please chime in and explain who this company is supposed to survive for 10 more years.

This is cost of goods sold. So basically more than 25% of revenue

Even with the latest nodes the designs are lagging behind the competitors.

The FACT that Intel is going to report profit & loss separately for manufacturing than P&L for engineering/design reflects exactly that… management can state that we are not splitting the company, but splitting financials will make it easier to change that plan in coming years.