When Intel was generating 60% gross margin, it was printing money.
Now, Intel gross margin is 42%. No more printing press.
All of the failing gambits into new markets was funded by the printing press. Now that the printing press has been unplugged, all of these failed efforts will have to be unwound.
As a shareholder, I would rather have had Intel return all that money in the form of special dividend. Instead, they wasted the money and now have to fire the employees.
IDM 2.0 won't happen.
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You love the company and your coworkers. You are also a loyal 'family member' as the CEO would say. Still you see that the strategy will put the company into the dirt. What do you do? If you stay, you will damage your long term career prospects and may be quite miserable. If you go, you have to make a large bet on a new company with unknown culture & strategy you are not equipped to evaluate. This is the dilemma many tech workers are faced with multiple times over a lifetime. All you can do is be intellectually honest with yourself and try to make a good decision void of emotion. It isn't easy. GL.
Yes the business is cyclical, but there have been massive execution failures. Have been sleeping through the past few years?
This is politics and subpar management.
How long did sapphire rapids take?
10nm?
ARC drivers?
The list goes on and on
X86 monopoly Nd guaranteed turns business and growing was when we printed money. Build a factory and be sure it would be filled.
Today AMd makes a competitive to superior part in x86.
Apple makes a superior mobile CPU
AMD and Nvidia are superior in graphics.
Qualcomm and others superior as well.
All the above have access to better PPAC and larger and more efficient fabs to make their designs faster, cheaper and better TTM.
FUBAR and why Intel’s only only strategy is a chip play on onshore and politics as they have no other competitive future as either IDM or Foundry.
Pat, ELT, and BoD are fools to think this will fly. The future is either a company like Lockheed Martin who relies on low volume defense work. As high volume things that make money for companies like Apple, Nvidia, AMD, Qualcomm and others fundamentally don’t reside under the same roof as those for national security. It will be a sad ending for the world if it does, is that the angel Pat and BOD and we think is coming.?
- Yes semiconductors are cyclical. The difference here is that Intel investments in acquisitions and new businesses grown internally are very high failure rate.
- Explain how politics is to blame at Intel? What I see is that demand shot up during pandemic and lots of PCs were sold, now PC market under pressure and side businesses failing. Hard to blame politics for that isn't it?
allways been cylical like this in semiconductors, nothing new. thisall way actually very predicatable if watxhing the economicand political environment last 2 years.
nwk+1jxVL6xX hey maga hero, call your mom, she misses you
Feel better now?