Posted on 11/05/2022 6:08:05 AM PDT by FarCenter
With a major downturn in revenue and profitability over the past six months, Intel has some tough decisions ahead as it seeks to make billions of dollars in cuts while the beleaguered semiconductor giant tries to enact its grand comeback plan.
As announced last week, the American chipmaker plans to reduce spending by $3 billion annually starting next year and then ramping that up to $10 billion by 2025.
While a good deal of these spending cuts will come from laying off a "meaningful number" of people, the company has also said that it will also look at "portfolio cuts." This means Intel will look to cut loose some of the products it makes and sells.
In some cases, Intel may look to offload products to a willing buyer, like it has with the sale of its NAND flash and solid-state drive business. But in other cases, the company may decide to discontinue products and write them off, like it did with its Optane memory business back in July.
"We remain committed to optimizing our value creation efforts through portfolio honing; reallocation of resources to higher returns, higher-growth businesses; M&A; and, where applicable, divestitures," Intel CEO Pat Gelsinger said on the company's third-quarter earnings call a week ago.
While we don't yet know where Intel will make product cuts, we decided to make some educated guesses for where the company can slim down its portfolio.
Habana AI chips
Blockscale ASIC
RealSense stereo cameras
NUC mini PCs
The reason for Intel is to make money.
Action to increase corporate value are appropriately welcome by stock holders.
Samsung has a virtual quality/image monopoly on solid state drives. 970,80 and now 990 drives really are quality and I don’t know how you break into that.
I never fully understood Optane other than people saying “It’s a cool concept.”
No money in manufacturing the chips for auto’s and other industries that are hindered by not having an ample supply to get finished product out the door?...Not worthwhile to build plants back here in the U.S. even with all of the monetary enticement’s?
Intel is not really a player in automotive chips.
The Top 5: Biggest Automotive Semiconductor Manufacturers
Read more at: https://www.saurenergy.com/solar-energy-news/the-top-5-biggest-automotive-semiconductor-manufacturers
Infineon, NXP Semiconductors, Renesas, Texas Instruments, ST Micro.
An excellent place to start would be firing their entire DEI bureaucracy.
>Samsung has a virtual quality/image monopoly on solid state drives. 970,80 and now 990 drives really are quality and I don’t know how you break into that.
I had a bad batch of EVO870 Samsung drives. All failed within a year. Not a fun time. They were all minted in S. Korea around Jan/Feb 2021. Needless to say, I’m leary of Samsung SSDs.
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