Thread regarding Intel Corp. layoffs

An Absolutely Glorious Rant by Ben Thompson on the Incompetence of Intel’s Board: “Disgusting for Twenty Years”

&, I think, 100% correct. Addressed to the appreciative audience of Anderw Sharp. At 50:40:

Here is the interview:
https://sharptech.fm/member/episode/gelsinger-out-at-intel-20-years-of-structural-challenges-and-strategic-blindspots-the-board-and-whats-next

A closer look at Intel's fall from grace in the wake of CEO Pat Gelsinger's sudden retirement and with the company facing a fresh round of questions about its future. Topics include: Ben's overview of a 20-year run of paradigm shifts and strategic missteps, Gelsinger's strengths and weaknesses, CHIPS Act funds and a looming inflection point, and the murky path forward for American made chips…

Ben’s basic point is that Intel’s troubles starting in 2021 were the result of decisions and missteps taken in 2011, and will require a timespan of the same order to correct. To hire Gelsinger as CEO, declare that you are 100% behind him, and then can him after 3 1/2 years, blaming him for his failure to have done the impossible in a short time period—that is just malpractice. I can see a case for revisiting Gelsinger’s plans at the end of 2025, after Intel 18A is well-launched and we have something of a market verdict on it. But that is fully a year away.

You can argue—and Ben does—that the board should not have hired Gelsinger 3 1/2 years ago because the task he thought he could accomplish was in fact impossible. You can argue—and I do—that Gelsinger’s plan was (probably) bad for shareholders, good for stakeholders as a whole, a wonderful thing for the country, and the best thing that could be done with Intel for the world. But in either case—or if you think Gelsinger’s plan was probably good for shareholders as well—once in, you are in. In the (perhaps apocryphal) words of Napoléon Bonaparte: “if you set out to take Vienna, take Vienna!”

Source:
https://braddelong.substack.com/p/biweekly-briefly-noted-for-2024-12

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| 1731 views | | 5 replies (last December 7, 2024) | Reply
Post ID: @OP+1vQWZ7tj

5 replies (most recent on top)

The board and some big funds don't know what they're doing. This also helped to the mess Intel is now in

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Post ID: @1mto+1vQWZ7tj

Ben gets it a bit wrong on the innovation front.

Samsung and TSMC were ahead of Intel on GAAFET (ribbonfet) development.

Also, backside power was pioneered at TSMC but was not a good fit for mobile processors and so was deferred to A16.

The truth is that customers drive process innovation at foundries since they directly fund R&D and partner on requirements.

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Post ID: @don+1vQWZ7tj

that was fun to listen to

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Post ID: @kdu+1vQWZ7tj

The top culprit would be Vanguard which strangely enough Blackrock owns a piece of.

Top Shareholders

Vanguard
321,097,444
Institution

  1. 44%

7,051,299,870

Vanguard Index Funds
270,750,891
Institution

  1. 28%

5,945,689,566

iShares
249,947,349
Institution

  1. 80%

5,488,843,784

SPDR
160,569,413
Institution

  1. 72%

3,526,104,309

Invesco
143,427,702
Institution

  1. 33%

3,149,672,336
Theofanis Kolokotrones
77,267,112
Institution

  1. 79%

1,696,785,780

Fidelity Concord Street Trust
71,606,149
Institution

  1. 66%

1,572,471,032

Vanguard Chester Funds
47,340,148
Institution

  1. 10%

1,039,589,650

VanEck
44,252,184
Institution

  1. 03%

971,777,961

Vanguard World Fund
31,342,162
Institution

  1. 73%

688,273,878

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Post ID: @qvd+1vQWZ7tj

Share holders should take a proxy vote and force turning over the board for playing their part in diminishing their investment value and ruining an American iconic company.

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Post ID: @qig+1vQWZ7tj

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