https://www.tomshardware.com/pc-components/cpus/intel-plans-sale-and-leaseback-of-its-150-acre-folsom-california-campus-releasing-capital-but-maintaining-operations-and-staff
Sale campus only helps in very short term, running empty fab costs you billions each Q. Intel needs to stop the bleeding from fabs first.
@3ug… it is a business. Selling your core assets only to lease them back is a sign of desperation. It doesn’t matter what business you are in.
Wait, wait… someone on this thread is seriously comparing Intel to Red Lobster.
No Falcon Shores success will be the end of Intel. Sad but true.
The government is not handing out money for unstable chip design. But they will fund a FAB that can't make chips.
You could sell RNB to Great America next door.
They could open the INTC stock ride.
Rapid drops for the thrill seekers in your family.
The fabs are empty because nobody wants to work with us and we don't understand how to market our strengths or work with external customers(worst customer service for a semi). Even the few external customers we have are likely taking us for a ride, and we are paying for it in gaining experience. But you are absolutely right, empty fabs and lack of production is the biggest cost of this slump. Even Intel products would rather use TSMC...
Parking meters on all campuses. Force all employees to return to work 7 days a week, and then deduct from paychecks a daily amenity fee like resorts charge for hoteling spots, internet access, printer usage, and free coffee. Charge $20 to get a paper copy of reviews, etc.
Put stairs on the outside of RNB and lease out two floors that now sit empty to AMD. Or better yet, sell all santa clara properties including RNB and tell everyone to move to Folsom. The stock market doesn't count intel in technology companies, it doesn’t need a presence in silicon valley.
Many of the campuses have only partially used space, and many of them are now in dense urban areas, so there is a lot of potential value locked up.
But the motivation seems to be more about getting higher utilization of the the remaining office spaces, as Intel has still not gone RTO like some other tech companies have done.
Also consider that x86 is increasingly losing market share to ARM, and eventually to RISC-V, so the company needs to consolidate and won't need so much lab space as market share shrinks.
Fabs on the other hand can generally be fitted with the next node. They've built too much capacity for the relatively slow external customer growth of IFS. They were way too optimistic about the willingness of potential customers to use IFS when it was in any way connected to the product divisions.
Separating the two and potentially spinning off IFS will solve that issue and if there is enough runway left then IFS will become profitable. But the product divisions are facing a potentially existential crises with ARM and RISC-V.
That is where the big pivot is needed, like what Grove did in the mid 1980s. It's about time to burn the ships and move on to RISC-V..
It seems pretty bizarre that INTEL is transforming into a real estate company.
I thought we were supposed to become a world class foundry or something ?
Selling the property and then leasing it back is one of the things put red lobster into chapter 11. The money raised by the sale will be quickly spent and the new lease will increase operating costs. Intel is taking every step possible to go out of business.
We need a fab every few blocks. That should stop china.