Thread regarding Intel Corp. layoffs

Some fundamental things that the Intel Government Affairs team have failed to make the ELT understand as they all beat their chests about the US and EU Chips Act include the following :

• what Governments “give”, they can equally take away
• what Governments “give” with one hand, they take back with the other (15 per cent corp tax increase)
• what Governments “give”, they always condition heavily and insist on a “get” (e.g no mass layoffs , that is fundamental to Congress).

There is NO FREE LUNCH in this political exchange . Intel has become a subsidy junkie. Not only is it the opposite of being a Technology Leader , but it is ties the recipients in knots.

I know for a fact that Bruce Andrews and his Team know this but that they are not explaining it to ELT as it would take the sheen off the open goal they scored with the Chips Acts . I know for a fact that Pat and Keyvan don’t realise it as their judgement has been clouded by dollar signs in their eyes .

They can always hire Murthy back

Won't fix Intel's gap to TSMC... and any win Intel gets will be negative gross margin and only make things worse. The business model is broken and the cost structure is an anchor.

@cbw

It’s also not good for government handouts and contracts

And that's how you get constipation and a slowed down metabolism.

The optics of a massive layoff clearly ain't good for attracting customers, so PG holds the sh-t in.

Intel CEO Pat Gelsinger said on a call with analysts the company still sees "persistent weakness" in all segments of its business through year-end, and that server chip sales won't recover until the fourth quarter. He also said cloud companies were focusing more on securing graphics processors for AI instead of Intel's central processors.