Such an iconic company with some of amazing technologies in advanced packaging (EMIB, Foveros). I don’t think Intel will be acquired by any other company. They still have much left to contribute to world technology.
7 replies (most recent on top)
Never heard of a company cannot be failed because of national security. Is Intel some kind of secret government spy agent?
For national security reasons, Intel will not be allowed to fail. That’s not to say foundries won’t be removed from the books as a separate entity, 15000 people won’t be laid off, but it wont be allowed to fail. If you also believe this, I’m wondering when’s a good entry to purchase shares before it pumps
Wrong comparison to retail (sears and k-mart)
They cannot burn cash as fast as we can do
Are you seriously comparing Intel to toy r us, sears, even Kmart?
This is the same feeling people had about Toys R Us, Radio-shack, Sears and Kmart. Mismanagement can & will doom any company no matter how successful or how much they had to contribute.
It’s none of the reasons you mentioned: it’s about the bottom line and at this rate, INTC is burning cash like no other and if the business doesn’t improve pronto, it risks going bankrupt.
While EMIB and Foveros are impressive technologies, they don’t seem to be as widely adopted as CoWoS. Are they really cost-competitive? With Samsung developing SAINT and panel-level packaging on the way, I’m not sure they offer enough differentiation to sustain the Foundry. I’d be happy to be proven wrong!
Intel has a large footprint, if the cleanroom space is not utilized, how are they going to keep the lights on? how many quarters have we had a loss? how many more can we sustain? I really like Louis Rossman point of view on this and I think it is right on point:
https://www.youtube.com/watch?v=UvfT0K9t5zQ
Summary of video:
Louis Rossmann expresses serious concerns about Intel's viability as a business. He notes that the company's profit margins have drastically declined, dropping from 25% to as low as 3.1%. This financial instability means that even small mistakes could lead to significant losses, jeopardizing Intel's future. He warns that if Intel has to issue refunds for defective products, they could face an existential crisis, further weakening their ability to invest in innovation and compete effectively in the market. Rossmann concludes that this situation poses a risk not just to Intel, but to consumers, given the limited number of major processor manufacturers.