Thread regarding Intel Corp. layoffs

Just read another note that if the JV actually happens it will be for just the EUV fabs in OR and AZ, and may not even include TD, so very limited in scope.

Could easily see IFS broken up, with EUV fabs carved out into a JV, older fabs sold to an existing foundry, and TD along with some small amount of OR space either kept within Intel, or possible everything not in the JV spun out all together.

There are probably some other possibilities but what does not seem possible at this point is that IFS as it is currently structured remains intact.

If the JV were to include technology or some combination of TSMC and TD, then that would result in a very large, massive amount of asset and headcount shedding for TD. That seems likely anyway, as TD has morphed over the years into a parasitic entity for Intel. A hole in the ground into which billions are expended.

News is good for Intel but bad for Intel employees

This is so erotic … the speculation! Oh yeeaaa

@aw+1jqyh1dfg spinning out IFS into a JV at a time when it is still losing billions and not yet getting major customers, is an enormous positive for the stock.

Without the JV, the company would have a hard time doing a spin out while IFS is still losing billions, so this speeds up the timetable, a lot.

That means there is the most pressure imaginable to know if the JV is a real thing, and why the rumors have kept swirling, but have no doubt the discussions are real because TSMC and even NVDA are making so much noise about not wanting to do a JV with the 'nothing' Intel.

You can tell Jenson is lying because he is using his word hole. He is the current king of hyperbole and misdirection.

If Intel is able to extract IFS from the books in its current state, that probably pushes the stock to the $50s in short order. That's why the rumors will keep coming.

Got Intel Stock Fund?

Are there reasonable guesses why the insiders leak out the preliminary agreement before it is finalized?

Noted in the article and mentioned here before, TSMC is not interested in the non-EUV fabs being part of the JV.

That may not mean much but something ultimately has to be done with them, because they are not worth shoehorning EUV in some side module. They were never set up to handle real foundry volumes and are effectively going to stay on the same node from here.

GF could buy or lease them, or they could run until the volumes dry up then be mothballed, but there is more value to be had by doing a deal with GF or some other foundry.

Funny thing is, those outdated facilities are probably at far less risk of the massive headcount reduction coming to the newer fabs, even if the fab workers end up working for GF.

I hope that whatever the marriage will happen after IFS proves it can deliver the 1.8nm this year as promised not before. It is good for both companies and their shareholders.

Basically, IFS will be a foundry for TSMC. TSMC will own all manufacturing decision making, and Intel/IFS will essentially be their sole customer. In other words, IFS will be the middleman to TSMC run fabs. IFS will find the customer, and send them to the IFS/TSMC run fabs and AT. I suspect that TSMC will require Intel to heavily invest in multiple US based packaging facilities... since it does no good to build silicon units in the US, and send to Asia to package, and send them back to US.

TSMC could own 100% of Intel and still no new product this year.

Poor TSMC. Intel has used TSMC to bump up its stock 3 times. Yet TSMC has dropped by 25% by the news bundled with Intel.

It seems Intel periodically spreads out fake news to bump stock.

This is totally beyond any business model. Poor TSMC.

It was in Reuters and some other places as well, and might just be stock pumping by some random hedge funds, but I liked that the price closed the gap from the previous run.

It's been doing this since last Fall, and so far putting in higher lows and higher highs, so that is encouraging. The market and especially the sector could still take it down, in which case I'll continue to slowly add up to about 2x of what I have currently, but am also happy with my current share count, and had more in the first big rally off the lows last Fall.

Resolving Tariffs with the EU and other key trading partners would seem to slow the global economy. The China tariffs are not likely to be resolved, as we are essentially cutting them out of our market. A capitalist country can't really ever do 'free trade' with a communist country, because they see companies as an extension of the state, to be subsidized indefinitely. You know, like how the last president saw how to manage the economy.

So China tariffs will slow down that country and that will reduce global demand as well.

Offsetting this is the realization as of yesterday by a lot of companies that this is a real thing, and not merely bluster (as is often the case). The US has allowed manufacturing to be hollowed out since the mid 1970s, and that has greatly damaged the middle class and economic mobility. The hope was that our partners would eventually lower barriers, but that never happened and the globalists in our own society saw huge benefits from offshoring so kept the captive 'uniparty' politicians in line.

That is what just ended, and it means if Intel can prove 18a is a viable process then everyone should expect a steady stream of external customers over time. The failures so far were compounded by the competition being so heavily subsidized, and that at least has been somewhat corrected. Intel still has to perform to win.

@a7+1j I totally agree and have been postig for some time that getting TSMC in as an investor is the best way for IFS to cut through all the baggage created by being a bespoke IDM organization and restructure TD and the fabs to be more suitable for foundry.

For all the yapping about all the other people who should be fired, the reality is that IFS will soon be roughly cut in half.

Thanks to Ann, TD is a mess and grossly overstaffed. Labs are completely out of control. Fab workers will become contract workers, and eventually be replaced by AI and robotics. Only IDM could afford to pay so much for so little skill.

LBT is very rapidly putting in place the changes that everyone knew needed to be done for at least the past 15 years. That just shows what failed leadership has done to this company.

First step to end the TMG/IFS cabal (finally). Fully expect most Intel IFS leadership and sr mgmt will be invited to leave before the end of the year. TSMC will be shocked how inept, lazy, and bloated Intel mfg has become. There is zero chance TSMC would work with Intel without having 100% control over staffing and FSAT decision making. Intel will likely still control the roadmap, level of investments, pricing, and customers... but everything else is decided by TSMC.

The tariffs did not include semiconductors, but it is probably now clear to TSMC that a semi tariff is coming.

They will get a better deal now than if they wait.

I guess maybe Intel is not a 'nobody'. So many lies by TSMC execs about what they were doing.

Fab works, dust off your resume, because this will get ugly (for you at least).

Someone in Intel s spreading fake news to raise stock price every a few weeks.

Where is the product promised from 5N4Y?

Intel is so used to tell lies and spread fake news.

Intel = Intel Tell lies.

The same fake news from 3 weeks ago, circling back again. Even the wording is the same as before.

Fake Intel.

Fake news again to bump up stock.

Funny how it closed the gap from the previous rally, then the news broke.
Been adding shares and expecting great things from LBT!

(Reuters) -Intel and Taiwan Semiconductor Manufacturing Co recently reached a preliminary agreement to form a joint venture to operate the U.S. firm's chipmaking facilities, the Information reported on Thursday, citing two people involved in the discussions.

TSMC will take a 20% stake in the new company, the report added.

Shares of Intel were up nearly 5%, while U.S.- listed shares of TSMC were down about 6%.

Intel and TSMC did not immediately respond to Reuters' requests for comment.

Reuters said in an exclusive report in March that TSMC had pitched U.S. chip designers Nvidia, Advanced Micro Devices and Broadcom to take stakes in a joint venture that would operate Intel's factories.

The Trump administration initiated the Intel-TSMC talks in an effort to revitalize Intel, the report said.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)