Almost everyone believes that the company has the wrong strategy. However, rarely does anyone say what would be the right strategy!? Maybe it's too late now, but Intel needs radical changes in my opinion.
5 replies (most recent on top)
I agree with @hwu+1koOjM2m.
- spin off fab turn it into a real business with brutal competition from TSMC, it will need to learn to be cost competitive and nimble or it will die.
- for the IP portion of Intel. Chop it down to bare bones. Drop all products that are not #1 or #2 in their segment. That means cutting discrete graphics.
- for businesses that survive, run it like a real P & L. Set ROIC targets. Set margin targets. ELT that runs the business has to have PROVEN track record of running a silicon P&L. Cannot have DEI-centric bloviators like current ELT.
- May be o.k. run run the IP portion as public company, but better year take it private. Cut the he-l out of the expenses and get the damn thing back to solid cash cow generator.
This isn't as complicated as it look. It is just extremely painful. Unfortunately, it's really the only option.
The best and brightest are not enough. You need the right strategy.
Let’s say my strategy is making the best Betamax VCR. I could get the best engineers , but my product will fail since nobody wants it.
Foundries are essential for US. Relying on a small of piece of real estate in another country for 70% of worlds advanced chips needs to be de-risked. IFS spin off and ipo might be a good strategy for Intel if they can get someone from Tsmc to run it. Rest of what is left at Intel can be sold or spun off. I think this will unlock shareholder value.
The strategy is foundry.
Wake up.
There is no other option.
Stop HR's woke agenda and return to Andy Grove's mantra "Intel only hires the best and the brightest."