Intel contemplates outsourcing advanced production, upending Oregon’s central role

dl324

Joined Mar 30, 2015
16,846
Intel doesn't need to convince anyone. The US government sees too much reliance on TSMC and Samsung as a national security issue. Even auto manufacture is being slow by the lack of chips.

Schumer is going to get money for GF and Intel just announced a $20B investment in new fabs in AZ.

Gelsinger claims Intel has solved it's issues at 7nm, which IC Knowledge LLC claims is comparable to a TSMC 4.1nm process. Intel made a mistake when they let TSMC claim process superiority with marketing propaganda.
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TSMC cheated when they first implemented finFETs. They changed base layers, but left metal dimensions the same, so they got device improvement with virtually no density improvement. Intel doesn't play those games. TSMC doesn't care as much about yield or density because they pass those costs on to their customers. They just need to look competitive to Samsung and Intel even if it's just marketing hype.
 
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ApacheKid

Joined Jan 12, 2015
1,533
To me this seems like a bad idea.

Some years ago I worked with a UK company designing and manufacturing ventilators for the medical market. Although not majorly high tech, the boss of the company knew he could move production to Asia and increase his profits. But he also knew that if he did, he would almost certainly find copycats of his products on the market, available cheaper because they did not have to bear the development costs (and would possibly be devoid of any legally required medical approvals).
Intel's days are numbered anyway though, even as we speak they are no longer the powerhouse they once were. Lots of big companies in this situation focus on salvaging market share, regaining stock price, reducing very expensive R&D.
 

ApacheKid

Joined Jan 12, 2015
1,533
I didn't know he had hardware background with Intel, especially with the jump to software at VMware.
I've never known an exec that can manage both, as like I say hardware and software are two totally different birds.

If Intel could not go into damage control mode and slash/cut/outsource, just stay the course even just keeping manufacturing up, look at the present wafer shortage, they could add American stability. I'd say their product lines are a sloppy mess and not competitive. FOCUS.
Intel bet the entire farm on X86 and the monopoly they had for that. They missed mobile, they missed GPUs, the missed RISC, they abandoned DRAM.

Meanwhile Nvidia and AMD are enjoying a windfall as prices for their stuff skyrockets.
 

ApacheKid

Joined Jan 12, 2015
1,533
Intel just announced a $20B investment in new leading edge factories in AZ.
This is news about IBM investing 3.5 Billion 25 years ago, who actually sees or uses or works with IBM these days?

In the second quarter of 1995 IBM launched a hostile bid for Lotus[2] with a $60-per-share tender offer, when Lotus' stock was only trading at $32. Jim Manzi looked for potential white knights, and forced IBM to increase its bid to $64.50 per share, for a $3.5 billion buyout of Lotus in July 1995
Of course companies will spend, they spend when times are good and when times are bad.
 

dl324

Joined Mar 30, 2015
16,846
This is news about IBM investing 3.5 Billion 25 years ago, who actually sees or uses or works with IBM these days?
Have no idea what you're talking about. I didn't mention IBM or anything happening 25 years ago.

Companies who are on their last legs don't invest $20B in new fab capacity. Even the big boys in the industry would be hard pressed to come up with that kind of capital. Intel pays out over $6B a year in dividends. Can you name a competitor who has the profits to pay out that kind of money?
 
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