Didn’t they like cancel a bunch of factory projects recently?
Who possibly saw that if you kill your manufacturing and buy from a company with monopoly power, they could write there own profits.
Sometimes big companies are really dumb.
While in reality TSMC gave Intel a 40% discount, a discount that was only discontinued, because Gelsinger trash talked TSMC!
So you are right they were dumb, but you are completely wrong about the why and how.
But of course based only on this article, it’s impossible to get that part right.
Or TSMC was always planning to raise the price and Gelsinger just gave them an excuse to do so sooner while not losing face or worrying other clients too much.
If you can offer a 40% discount and still make profit, your prices are probably 3 times the cost.
If you cannot go to another supplier, you have vendor lock in.
I’m an AMD guy, so I got no skin in the game defending Intel, but if you’re shilling this much for TSMC, you aren’t really bringing an unbiased opinion.
If you can offer a 40% discount and still make profit
Maybe they didn’t? Or at least maybe not much.
if you’re shilling this much for TSMC
What? How am I shilling for TSMC? And I’m 100% an AMD guy myself, I freaking stuck to AMD during the whole Buldozer shitty period, because I didn’t want an Intel monopoly. And I bought AMD stock when they revealed Ryzen.
So I do NOT encourage a TSMC monopoly either.
This is a pretty dumb take, honestly. Intel for basically forever operated using their own fab exclusively. After failures to maintain good yield rates at their 10nm node, they had the option of continuing to delay new product lines and be eaten by the competition in AMD, or give in to TSMC temporarily while they worked on fixing their fab in parallel. In fact, they were criticized greatly for not switching to TSMC much earlier.
The key word is temporarily. How long ago was this?
Calling people dumb then throwing a weak argument doesn’t make it stronger.
They’re on wafer thin margins with vendor lock in. The strategy was not successful.
It was a bad take. Intel has not been using TSMC long.
That said, it’s pretty broadly agreed that Intel needs to toss its manufacturing arm into a subsidiary, and then possibly make that subsidiary completely independent. That’s what AMD did with Global Foundries, and it worked very well for them. This process seems to have already started at Intel.
How long do you think fabs take to build and upgrade? Intel was working on fixing 10nm for years, this isn’t a software situation where turnaround times are measured in days or weeks. Going from tapeout to silicon for a single line is a 6 month process after the technology process is solidified, forget if you’re doing it while trying to figure out yield problems.
Break free from the solution they resorted to in the pursuit of profits? Too bad that backfired, but it’s okay since Intel can keep making subpar products as long as the government has their back.
Good days are coming for Intel.
Meanwhile stock prices going down, down, down.
Failing company eroding its work force get a temporary bump in stock price.
Bullish 🤡
They have a big market share and can improve margins with big state subsidies and firing people. Bug corps always fine. Workers are the ones that suffer.
Don’t crack out the violins for Intel just yet. The reporting is hyperbole, and if you can’t digest the facts through the sensationalism. A media break might be a good plan.
Good luck!
