Intel's whole business model of silicon development, factory, technology is all based on the maintenance of a monopoly on x86 where they can charge 75-150 dollar/chip for their volume product on each new node, what was more lucrative is they also with a little different packaging and customization re-package that same chip and sell them for thousand and tens of thousands of dollars for billions in profit to Amazon, FB, Google and other cloud/server companies. Moore's Law died but the mirage continued at Intel.
http://www.eetimes.com/author.asp?section_id=36 Foundry, ARM / LG on 10nm, IoT, Modems, Memory, 5G, dang just about every piece of high volume silicon Intel is now chasing, even AMD isn't that stupid strategically, says a lot about the desperate leadership.
CRB missed an opportunity to capitalize on that monopoly when the going was really good
PSO was MBA who looked to double down on the had a Gary Kiddall moment and missed it.
BK is no technologist and doesn't even understand the business / technology foundation and is searching for buzz words and chasing everything
Foundry, Modems, 5G, ARM, IoT all are highly competitive and cut throat chip business where the buyers demand PPAC, but the most important thing is the "C" Cost. There a a reason the Intel foundry has floundered for three generations, it is totally uncompetitive.
Intel lost the virtuous cycle for volume on leading edge to Samsung and TSMC as the smartphone based ARM processor gave each of them a huge volume, they don't get much money for the Aps processor 20-30 bucks versus Intel's 75-150 bucks and their lies the problem for intel. Intels' whole factory cost structure is un-competitive. The ACT didn't fix anything.
The company needs to be split in two.
Party 1 Murthy will and can run as a Qualcomm like house. The value in the x86 franchise is huge, cut free from TMG and if permitted to seek the best silicon house they could go to TSMC, Samsung, dang even GF for varous parts from Chipsets, Modems, GPU, and x86, be scary if TMG largest customer could go outiside. I figure Murthy can find another 5-10K fat layoffs. This would be worth at least 35-40 bucks alone.
Part 2 TMG, that is the boat anchor, structured to sell huge margin chips, small factories, arrogant and uncustomer friendly for the most part, how to fix? Need to consolidate the factories like they did with Assembly sites. Need a complete restructure of cultural and customer service, and R&D approach to be more Foundry like. Figure another 15-20K layoffs at a minimum.. Figure spun off after layoffs would be worth 10 bucks.
Summary: For maximum value Intel needs another 20-30K layoffs, complete restructure of TMG and split of the company and the net value is 45 bucks, oh a new CEO too!
Happy Labor day!