Intel Needs to Pull an AMD….

5 hr meeting on Aug 2….couple of possibilities:

) They will announce corporate restructuring (with layoffs) to help keep “Intel Profitable “. Hard message to hear but needs to happen and a LOT of people agree. Unfortunately, no real good way to do this, morale will suffer and so might stock depending on what earnings look like on Aug 01.

) The scenario which they really need to do is pull an AMD. Spin off the fabs and saddle them with all the debt, Intel proper gets scaled down to a design and technology (software) company who has their chips made at the lowest cost foundry (i.e. TSMC…with some contractual supply from their former fabs). Fabs made sense 20 yrs ago, not anymore. Of the fabs file bankruptcy because they cannot stay afloat, it doesn’t touch Intel’s credit worthiness or stock. For shareholders, this is the right move which will have broad ramifications unfortunately.

Either way, pay attention to earnings and which way the stick slides (up/down). My honest guess is an earnings miss with announcement of restructuring/ spin-off to help keep shareholders interested and happy. Su-ks that they use people’s livelihoods to balance the books…..

Comment! It's anonymous!

13 replies (most recent on top)

Earnings pushed out 2 weeks most likely because of VSP. The volunteers were locked in on 12–July and they need the extra time to figure out how much of a restructuring charge to take in Q3. Likely also layoffs as part of that calculation, because no way did they even get close to target headcount with VSP.

@1fhu - good catch lol then again it could be coincidence

If anyone notices, earnings have been pushed out by a week. Would have been in last Thursday of July normally.

DZ is busy.

1pam - chips act money will not keep intel afloat. $8.5b? intel is burning thru that every 6 months. the government is not going to keep handing intel money. i don't get why intel employees follow pat down this death march. jim jones style.

It might a good idea to spin-off Fabs in USA and let Government buy a controlling stake. That way it will be a win-win for both Intel and national interest of USA in terms of semiconductor supply chain security.

arrow lake is tsmc 3b and zen 5 on tsmc 4. zen 5 is still destroying arrow lake in performance leakes.

@dtc
How much time do you want to wait?
Pat has had 3.5 years.
5 years is HALF A DECADE!

That’s an eternity in the tech world.
Meanwhile revenue and margins are cratering as major markets decline and are under attack from competitors from all directions using superior transistors from TSMC. It’s hard enough to compete on a level playing field and impossible when you’re down a node or two.

If you believe Pat’s blue sky promises, you’re in for a very rude reality check.

The cut/paste didn’t work well for the OP. He meant 90 minutes… or 1 and a half hours…

Only Intel would think that a 5 hour meeting would be productive. Is this a corporate map day? slide deck preparation must be running in high gear .

5 years is a lifetime in today's market.
Walmart will be buying intel facilities for their online warehouse business.

No way they're spinning off the fabs. The fabs are the only reason Intel is getting CHIPS act money, and govt money is the reason Intel is staying afloat.

You’re so full of it. This is a 5 more year plan. It takes time. It’s a great strategy and the U.S. and the west will have a more resilient supply chain.

Do you have experience or running a fab or company? If you would have this much experience and gusss then certain need to utilize the skill

Thread regarding Intel Corp. layoffs

Intel Needs to Pull an AMD….

13 replies (most recent on top)

Post a reply