Thread regarding Intel Corp. layoffs

A More Rational Look on The State of Intel

I was ISP'd last week and have read lots of articles on this site and elsewhere. It would be helpful to take a 10,000 foot view of the situation.

In the beginning .. there was the humble PC, then the Workstation, then the Datacenter Server ...

The market starting shifting towards smaller compute devices (PDAs, Initial Version of Smart Phone -- Palm Treo etc). Intel's initial foray into Phone SOC's was the Xscale processsor, which they sold off to Marvel in 2006. The Intel Brass initiated the design of a low power IA chip -- Silverthorne. This was initially a two chip solution a "CPU" chip plus an I/O chip. This design was started in 2006 (2005 ??) under the auspices of Paul Otelini, then Intel CEO. The Silverthorne and Lincroft designs were slated for Ultra Mobile PCs and Mobile Internet Devices (MID). Then came Penwell (all components in one SOC), Cloverview, Valleyview, Tangier, Anniedale, Cherry Trail, and Broxton (which may live on as another product). In 2013ish, Intel also started work on the Sofia platform.

The upshot... Cloverdale appeared in phones made for overseas markets, Valleyview in Tablets, Tangier in the Fossil smartwatch, Anniedale in the Asus Zenphone. So, Intel was getting some traction for their efforts. In fact, Intel sold 40 million tablet SOC's. However, due to contra revenue and R&D costs, the phone and tablet SOC divisions operated at a loss (to the tune of 3 - 4 billion for each of 2013 and 2014). The goal was to get Intel SOC's into the market , refine the process so as to make money. But, at the end of day, Intel was 7 - 10 billion in the hole on phone and tablet SOC's. At some point, you have to stanch the bleeding. There is no amount of getting around this fact.

Now, then lets stop beating up BK and Aicha Evans. The SOC bleeding cannot be laid at the foot of BK. The SOC development was started under Paul Otelini. BK made a good faith effort to continue SOC development. IA SOC development started in 2006, BK became CEO in 2013. That's 7 years. Plenty of time for things to run afoul before BK became CEO. When you've spent 7 - 10 billion on something ... its hard to beleive that could be made up in a reasonable amount of time. The release of the Qualcomm snapdragon 820 was the nail in the coffin. Read the description of the chip on Q's website.

Built from the ground up as a Phone/Table SOC.

Yes, i have spent several days pissed at being ISP'd, yet I also noted a year ago that this could happen. A year ago, you could see other areas of the company making handsome profits.

It makes sense to play to your strengths. Right now Datacenter markets, IOTG, FPGA in Xeon CPUs, and memory are the hot spots.

And lastly, stop beating up the workers from India. Its pointless. The Indian coworker in my dept knew the PM stuff cold. He could recite the registers and the required settings of off the top of his head.

And that's my take on this .....

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| 2997 views | | 10 replies (last May 6, 2016) | Reply
Post ID: @OP+HejWUq6

10 replies (most recent on top)

@1yxi - strongarm = xscale

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Post ID: @2svt+HejWUq6

Regarding the sale of Xscale to Marvell, that happened not too far after the time that Steve Jobs was frustrated with Intel's slow pace and apparent lack of desire to create a chip for their little project called "iPhone"...oops, big miss? We would have had the iPhone, we would have had a lot of IP to leverage from Xscale to flood the smart phone market....oh well.

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Post ID: @1cae+HejWUq6

IOT billions in spending will be the next casualty 5-10 years from now when Intel finally admits defeat (years after it actually lost). The market is going to ARM for energy efficiency and SW ecosystem and Intel's "if we build it they will come" model just doesn't work. Servers was the last market Intel will ever dominate. The Intel king is dead, long live the ARM king.

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Post ID: @1kft+HejWUq6

don't forget strong arm. Intel got it when they bought the Fab in HD from DEC. It was the fastest arm processor on the planet in 1997. it wasn't ia, so it didn't fly. The just let it go....just imagine the possibilities.

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Post ID: @1yxi+HejWUq6

I'm surprised it took this long to actually throw in the towel. Otellini, Krzanich, James and Evans are all at fault.

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Post ID: @1otk+HejWUq6

Keep in mind, BK and Renee rose to power on the promise of tablets and phones. They're as culpable as PO. They just didn't see the market flatten as suddenly as it did.

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Post ID: @1ooj+HejWUq6

some of us were there in 1996

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Post ID: @qfl+HejWUq6

BK is the Obama of CEO's. Everything he gets involved with disintegrates.

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Post ID: @qba+HejWUq6

Yes OP but... all of the $ and man-hrs of some of the best design engineers in the world working on THE best process technology in the world and we can't come up with a single viable unsubsidized product!!!? What does this tell you? It tells me that IA may not be able to scale to the same energy efficiency needed for small form factors and that Intel in it's arrogance wasted billions to try to do it when it was impossible. Who should get the blame? It hardly matters at this point. What matters is that the same arrogance drives poor decisions within the company today (IOT for example).

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Post ID: @ltt+HejWUq6

Thank you. This is well said and agrees with what I have sensed.

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Post ID: @wew+HejWUq6

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