Intel is in a trap of its own making. To switch major product designs to TSMC design tools and process is a 3-5 year effort.

Until that switch happens, it cannot abandon TMG. IT means Intel has to run a parallel design effort for a long time, as older existing products go through steppings and tweaks, while keeping TMG alive in case the second design team cannot make things work with TSMC tools.

One of the posts is right - TMG doesnt have a lot of market value with its tools and process, and hasn't proved it can be a viable foundry. This really means that Intel turns into a fabless semi company. which has to make the board choke.

This is why Swan is still in charge to keep the ship afloat and sailing toward the icebergs. Maybe the thing to do is create a fabless company with Intel architecture IP to design on TSMC. That would make INTC crash, since it's essentially a vote of no confidence in TMG.

BTW, Harvard Business School could never understand this.

Comment! It's anonymous!

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Epyc moment and first time in a couple decades Intel is is lagging and more dire by the month

https://www.digitimes.com/news/a20181108PD209.html

Imagine Navin standing up on stage, oops 4 years late as 10 still a PowerPoint dream

@1ust - Slight correction -

Street doesn't like TMG on its own until ICF shows actual success AND 10nm is fixed AND 7nm progress is real.

Yeah, good luck with that!

Epyc simply Epyc on 7nm baby. 14nm is great but as many intel Moore law fans have said nothing beats scaling and intel used it to crush everyone IBM, Motorola, AMD, and many more. This time they are looking from behind like IBM, ouch

@1ust Amen

This is like listening to sports radio. Some observations:

OP is right, this is not for HBS; it's for SGSB.
Street doesn't like TMG on its own until ICF shows actual success. Good luck with that.
14nm (plus all the +++) have gone thru depreciation, and the benefit is probably offset by 10nm equipment depreciation. This could go either way for margin, and would be complicated by expansion to TSMC. This is where BS earns his keep.
Capacity problems? Means TMG is cranking 24/7. If Intel can't get Street funding now, then when demand decreases (PCs decline again and AMD fires on all cylinders) it'll be too late.
As OP opines, it's a long design cycle onto TSMC, though certainly not 3-5 years.
Ultimately, the real fear is servers. Intel CCG can limp along on 14/12nm+++++++++ for many more years, but those massive Xeon dies are toast against TSMC for the foreseeable future. Goodbye DCG margins.

It is futile to offer a prediction. But everyone will (and I think I just did).

TSMC can and does out execute TMG and is cheaper because of scale and location. Now that TMG has lost leadership in technology it has no longer has any advantage over the foundries it is a no brainer the next CEO will migrate all manufacturing to the most capable provider.

Apple is totally dependent on their vendor and has launched new cycle like tick tick cadence. The arrogance, incompetence and dishonety in TMG totaled scewed the product team. If only TMG has come clean intel would have had a credible response to AMD but 2019 will be a FUBAR of simply be Epyc. The CEOs and BoD are a total failure, SA will be the first of many to get purged

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.

BK failure and is gone

SA failure and he is gone

Let’s be clear MM and future CEO will soon be purging a lot more of those folks. Hang on and there should be some opportunities as they fire all those coattail CIM folks

Thread regarding Intel Corp. layoffs

Intel is in a trap of its own making. To switch major product designs to TSMC design tools and process is a 3-5 year effort.

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