Thread regarding Intel Corp. layoffs

How much of Intel's products are produced by Intel Foundry?

Around 50%

Let that sink in.

No, it’s economic headwinds.
Just wait until 2026… err, no wait until 2030.
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Pat lied and he believed the lies himself.

AMD showed the way. Split into two companies.

I supposed if Intel was also building missiles, then a choice could be made between that and building fabs, assuming the company had the money to build either (note: it doesn't).

If the company had any reason to forecast the need for additional capacity then by all means at least put up a shell and when it is appropriate, equip the shell.

But to add multiple facilities at a time when external customers are merely kicking the tires and asking for engineering samples..that is an awesome way to go bankrupt.

Pat (with the Boards blessing) bet the company on an overly aggressive capacity expansion, only different from what happened at F42 (empty shell for many years) in scale (exponential F42).

It was reckless and stupid. You'd think the hubris of the 1990s would have wore off by now, but clearly the potential for stupid continues.

Don't worry about excess capacity. When Taiwan reunites with the Mainland China, all the US companies will transition to domestic fabs. They would do it slowly anyways now if Intel foundry is a separate company. It takes years to ramp a new node and product lines, etc. Companies will be fine with porting over 5 to 10% of their product production just to get Intel foundry healthy so when they do want to switch to high volume production it would be possible.

Yes, I mean US got can always blow up some TSMC fabs ... just like it blew up the NORD pipelines. Anything to give the US advantage.

Dropping $50B taxpayer money on building bleeding edge high tech manufacturing is worth it! I'd rather do that than spend $2M per missile blowing up $30K Houthi Drones in the middle east. Or blowing up dirt in Ukraine to save a corrupt government which is doomed to fail sooner or later.

Basically global companies want Intel foundry to succeed, it's just none of them want to carry the risk all by themselves ... I bet not one of them will complain if US Govt tells them all to do 5 to 10% of their product production with Intel in order to help get healthy on the latest tech nodes ... they want it badly to succeed. They are bleeding out of their a-s being charged $40K per wafer from TSMC. To them, there is no "excess capacity" problem.

But there is excess logic wafer starts capacity right now and I would think we are at the peak for AI demand right now! What the he-l were we ever going to fill Ohio with in the first place? There is no market demand for it right now.

Were we going to tell TSMC..."hey, we built this new fab in ohio, you know, ...so can you please shut one of yours down and turn away customers so we can get some orders. It is our turn we are entitled to it". It doesn't work that way no matter how much free government money comes your way.

Sammy is also idling and hot bagging lines because of no customers. What made us think we were going to get orders? Government pressure?

This whole foundry thing really never made any sense to me from the beginning.

The alternative is TSMC.... Monopoly on us soil. Which I suppose is fine.... If america is ok with no domestic semi company producing latest nodes.

Socialist... So funny. Extreme capitalism is the same. Nearly everyone becomes slaves. Any extreme leads to very few with power and wealth and eceryone else slaves.
Don't be brainwashed. The best is incentivize hard work and make sure each generation has a viable path to a good life.

He put all the chips on a war that so far didn’t materialize.

Two more issues: Intel has not been in the business of servicing varied customers (TSMC knows how to run a business like this). Intel also needed to demonstrate how it would manage customer overlap in timing/volume, many differing requirements and delays in production.

If you build excess capacity, they will not come.

Any (socialist) notion that companies will be mandated to do business with Intel Foundry just got voted out of office.

Not trying to be harsh and it is not just Intel facing a harsh reality check. The whole country is high on the squandering of our national wealth.

Building fabs is fine the problem is hobbling the product groups.

The real problem is companies don't want to use Intel foundry but at the same time they NEED intel foundry to succeed. Best way is to pay a bit for a public good, say 5 to 10% of their revenue production will be at Intel so it helps Intel develop and catch up but not enough so that it may hurt their own product health in the marketplace and if all companies are mandated (strongly pushed) by the govt then it will feel fair and be the best for ALL parties in the long run.

Fabs take a long lead time to build, equip and ramp. If you build it they will come. And they will, just need help from the govt and some consortium of large tech companies to work together so they don't make TSMC a monopoly.