While BK may not have been the best CEO, if he goes, then it seems that VR would become CEO, given that all other experienced or capable hands have left. VR knows something about markets & design, but not process development, or manufacturing. He created a group in India where he is said to be paying way more than the going rate for engineers, and there are rumors that certain execs where enticed to join, with exorbitant sign in bonuses. If one were to guess, a VR CEO-ship would mean layoffs in America (remember his alleged role in ACT, two years ago), and a transfer of technology and jobs to India. Think what you may, but look at history. AG (as good as he was) created a large branch in his country of ultimate allegiance, and so will every non-American-born CEO. The best scenario is if a capable American who understands markets, design, semiconductor process development, and some manufacturing is picked as a CEO. Someone with the good of Intel and this country on his or her mind. However, given the composition of the board, I am not so optimistic.
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OP has a point. VR has been brought in to effect cost savings by bringing in his Bangalore/Hyderabad operational skills. Hence DH was brought in as his 1st hire. Of course, he also was expected to change the loss making ICDg fortunes, which he has not done so far nor will he ...till 2019/20 !!?? Poor show of execution for a 25M hire. Back to the OP topic, yes VR has increased Bangalore to 12k and has announced a Hyderabad site.I think post Trump‘ corporate tax cuts which is to ensure American job creation and sustaining the American economy, Intel had better not misuse these benefits and create jobs in India. VR does not care about the US economy ( he is British) and would focus on an India centric operation that would give him more leverage & clout and make him indispensable to Intel in terms of India control (he tried the same in QC - which is what enabled him to trigger a major attrition when he left and hold QC to ransom in a way). I truly hope Intel clears this mess and is really successful once again. US, Bangalore and Israel will continue to be important sites. Aalborgh would a victim in 1-2 years and Munich would become a smaller satellite execution centric site.
"VR knows something about markets & design, but not process development"
LOLOL it doesn't matter because process won't matter much in a few years
You think these things are just gonna keep shrinking forever?? LOLOL
Pretty soon it's gonna be ALL ABOUT "MARKETS & DESIGN"
OP can‘t be an Intel employee. I read his post and kept thinking: Who the F is VR? Then finally I realized who it is supposed to be. I mean, seriously, nobody calls him VR.
🍔🍟🥤 supersized! Lots of good stuff here 🤭
Manufacturing isn’t in Oregon
Leading edge design isn’t there either
Intel profits last few years was from old stale 14nm. Proves you don’t need leading edge.
Now GF, Samsung and TSMC all caught up on process as TMG is two plus years late. Gone have been the last two decades of a generation lead. A generation, 2-3, years doesn’t sound like much but it is worth 10-20% in real world power performance and at least 20-30% in die size. In the past two decades intel crappy designers had that advantage over the world, but not any more! Now TSMC, Samsung and GF are with-in a year of intel and AMD and Apple new designs are schooling the old school intel designers. No duh intel needs a few outsiders that know how the real world competes.
As to does intel need TMG. Interesting as TSMC and Samsung now have lots of capacity to offer. One can ask is it really better to manufacture in high cost little TMG factory or a huge foundry depreciated and R&D paid by huge cell phone volume. Lots of 12nm capacity out there and probably far cheaper to secure and guarantee than what is tied up in 10nm from the last 5 years
This wouldn’t even be a debate TMG had kept their lead, but the lead is gone, interesting discussions the BoD are thinking and hope they make the right one!
Step one purge the old TMG intel insiders
Indians will do to USA, what they did ti UK, buy British comanies, like Jaguar, Brit Steel, Mittal Steel, Indiana make up 25% of top 15 richest Brits. They will bring cost down i.e. cell calls are 1/6 cent per minutes. In reality you won't lose your job to a Indian but to AI
Huh
It's a nice idea to release TMG folks but think again; Intel's advantage was to have both leading edge design AND manufacturing capability in place, in ONE LOCATION, Portland, OR. Now, Assume if you release TMG engineers, who do you think these process engineers would go. TSMC/GF/Samsung; this will make TSMC far more stronger in process technology front, so this will just make Intel far less advantageous. Say if Intel does release like what IBM did with GF, Intel might have to pay huge chunk of money, which means far more costly for Intel. So Intel still have to maintain manufacturing capability within it, no matter what. what Intel can only do is to lower profit margin much lower, other than increasing dividend on a visible aspects along with other cost saving attempts, which has been what they're doing recently/continuously.
And this makes sense since desktop/laptop CPUs are now very much commodity. If Intel can make any other new business to fly as an alternative revenue source to CPUs, then they "might" survive, but very likely they'll have to be put into a situation they can't do anything, thin spread resources of cheap products, just like back in 2000.
So, I don't have much hope for Intel at this point for long term.
TMG was a competitive adnatage a few years ago but a failure the past four years!
If it wasn’t for TMG failures Canon already in market place and Ice ramping as well as who know what other great products.
AMD was set free when they dumped manufacturing and loom at Apple and Nvidia kicking a$$. Time to dump TMG and cut head count 50k and set the design house to pit Samsung, TSMC, and GF against TMG.
Stock worth 60 bucks for design and -25bucks for TMG
Yep.