Thread regarding Intel Corp. layoffs

The State of Intel

PC unit volumes have fallen off a cliff since the peak in 2012. ~300M units to about ~200M units this year.

Revenue is flat since 2011 and the cost of new fabs are going up exponentially with process node.

There is no innovation in the PC.

Most user activity has moved to mobile devices. PCs only serve a small fraction of use cases now. Each new mobile product cycle reduces this even further.

Since the volume has shifted to mobile devices, the mobile foundries (TSMC and Samsung) can now outspend Intel on process and eventually take the lead (TSMC + Samsung) capex already exceeds.

It's pretty grim folks.

Plan your long term careers accordingly.

IoT is a Hail Mary to fill the fabs. However this won't work. IoT will be built from mobile SOC IP building blocks since comms and compute integration are requirements. Furthermore, IoT is still an unproven mass market -- it's more niche today.

by Anonymous
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Post ID: @OP+Hz7f4Ug
Comment! It's anonymous!

6 replies (most recent on top)

Agree with the OP on this one, it's going to be mighty tough for Intel to remain relevant in the coming years.

I'm not one who's been bashing Intel, I feel fortunate that they gave me a decent job for so many years and now when things are going south in a hurry I again feel lucky that they are offering the ERP to me.

I do feel bad though for those who got the ISP's, I think most would agree the R&R system is often extremely flawed. I also don't think it will be easy for those attempting to stick it out either.

Best wishes to everyone

by Anonymous
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Post ID: @bme+Hz7f4Ug

Drones will save us lol!

by Anonymous
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Post ID: @omd+Hz7f4Ug

Thanks to the CSP's, Intel's future will be that of a fab where the customer determines the price and Intel's historical business model, value-add and markup are dead

by Anonymous
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Post ID: @shy+Hz7f4Ug

Hit the nail on the head there! And the next generation is late and going to cost billions more to get ready but nobody really cares These days what MgHz or how any cores as almost all pcs more than 500 bucks are good enough. Everyone wants to spend their money on next generation phone and that is why Samsung and TSMC are now the ones to beat

by Anonymous
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Post ID: @xde+Hz7f4Ug

Thank god for 2015 ISP. I transitioned out of semi biz and now just sitting here observing the fallout. Glad I didn't graduate 2016. Best thing Intel did for me is to let me go. THANK YOU Intel.

by Anonymous
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Post ID: @enh+Hz7f4Ug

The balance sheet since 2011 has had long term debt balloon to $25B. Part of it is to buy back stock so it doesn't crash to $20. The other part is to finance Altera.

This leverage / levitation act isn't sustainable without more growth. Where will that come from?

by Anonymous
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Post ID: @bhh+Hz7f4Ug

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