Posted on 04/28/2023 4:44:31 AM PDT by FarCenter
Intel CEO Pat Gelsinger has defended the company's plan to become a chipmaker for hire after the company's profits plunged 134 percent year over year and it recorded a $2.8 billion loss during the first quarter of 2023.
Intel has traditionally built fabrication plants to manufacture its own chips, but has seldom built silicon for third parties. Gelsinger reversed that policy, deciding that Intel must develop a substantial foundry business.
"While everyone understands that we are establishing an internal foundry model, I'm not sure we have fully explained the importance and impact of this change," he said, insisting that hiring out its chipmaking chops will drive efficiencies, reduce development and design costs, and allow the company to better compete with chipmakers that rely on rival fabs.
The comments come as Intel pushes ahead with plans to invest roughly 30 percent of its annual revenues into capex to support of its massive foundry construction projects.
Despite Gelsinger's enduring confidence in the company's Integrated Device Manufacturing 2.0 strategy, the benefits of the plan are yet to become apparent: Intel's Q1 revenues, announced Thursday, fell 36 percent year-on-year to $11.7 billion. This decline, while not as bad as predicted, permeated Intel's product range during the quarter with all but one of the company's business units posting double-digit declines.
Gelsinger characterised the numbers as "solid first-quarter results, representing steady progress with our transformation."
Once again, Intel's Datacenter and AI (DCAI) and Client Computing (CCG) groups saw the largest dips, sliding 39 and 38 percent year over year to $3.7 billion and $5.8 billion respectively. In both cases, Intel CFO David Zinsner cited elevated inventory levels compounded by a contraction in overall demand for CPUs.
(Excerpt) Read more at theregister.com ...
Dependency on cheap foreign labor has catastrophic consequences.
More diversity hiring and promotions needed to swing it back to truly horrible.
“Dependency on cheap foreign labor has catastrophic consequences.”
Dependency on Microsoft consumer operating systems crafted by overpaid foreign labor...
Intel leadership is right about the fab business given what I see of Microsoft consumer operating system software.
Intel is willing to spend billions to right itself. Microsoft?
A good article on TSMC:
https://time.com/6102879/semiconductor-chip-shortage-tsmc/
Apple is its top customer.
Teams
... revenues 11.7 BILLION - holy cow!
On a casual note I often wondered how a CPU that reads out data from each word in it’s memory from right to left ever got so popular. That is not logical to me as it’s so very Chinese doing it that way ...
This latest generation of chip manufacture, or “node,” will leave U.S. firms like Intel and GlobalFoundries at least two generations behind. “That’s disgraceful for Intel,” says Daniel Nenni, co-author of Fabless: The Transformation of the Semiconductor Industry. “It’s just very disappointing that they lost leadership.”
“More diversity hiring and promotions needed to swing it back to truly horrible.”
That’s more true than you know. (Ex-Intel employee here) And this crash couldn’t happen to a nicer group of Essholes.
The best way to understand the meaning of a new process node is to think of it as an umbrella term. When a foundry talks about rolling out a new process node, what they are saying boils down to this:
“We have created a new manufacturing process with smaller features and tighter tolerances. In order to achieve this goal, we have integrated new manufacturing technologies. We refer to this set of new manufacturing technologies as a process node because we want an umbrella term that allows us to capture the idea of progress and improved capability.”
https://www.extremetech.com/computing/296154-how-are-process-nodes-defined
INTC up 4.81% right now... why??
.
The foundry spinoff has been a badly kept secret for a few months.
I own AMD stock and they will report earnings next tuesday afternoon. Expect.. well hope, it gets back to $100 where it was 1 month ago.
The stocks stopped their slide this week from one month ago. AMD UP the last 3 days.
Today’s tech stocks I look at, all UP.
Symbol Last Price Change
AMD 89.37 1.93 2.21%
144.01B
TSLA 164.31 4.12 2.57%
520.781B
NVDA 277.49 5.23 1.92%
685.4B
AAPL 169.68 1.27 0.75%
2.685T
QCOM 116.8 2.88 2.53%
130.232B
INTC 31.06 1.2 4.02%
129.553B
MU 64.36 2.46 3.97%
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