BIIC ELECTRONICS’ Post

💡Intel’s Future 💡 In the dynamic world of technology, where continuous transformation is essential, I recently read an insightful article on Intel’s future in Fortune. Former Intel board members propose a bold restructuring as a path to revitalizing America’s most critical semiconductor company—a move reminiscent of AMD’s strategy when they created GlobalFoundries, securing a stable long-term supply chain but also ensuring customer privacy controls are well managed within the Foundry business. As a finance professional focused on modernization, this perspective resonates deeply—especially the emphasis on agility, innovation, and alignment. A more streamlined structure could allow Intel to sharpen its strengths, setting a strong foundation for growth and resilience.

Special report: Inside Intel, CEO Pat Gelsinger fumbled the revival of an American icon -Gelsinger's comments offended TSMC, which did not honor discount -Revenue and stock price have declined sharply under Gelsinger -Intel's 18A chip process faces delays and technical issues Pat Gelsinger took the reins as Intel (INTC.O) CEO three years ago with hopes of reviving the American industrial icon. He soon made a big mistake. Intel had a sweet deal going with Taiwan’s TSMC (2330.TW), the giant manufacturer of semiconductors for other companies. TSMC would make chips that Intel designed but could not produce. And it was offering deep discounts to Intel, say four people with knowledge of the agreement. Instead of nurturing the relationship, Gelsinger – who hopes to restore Intel’s own manufacturing prowess – offended TSMC by calling out Taiwan’s precarious relations with China. “You don't want all of your eggs in the basket of a Taiwan fab,” he said in May 2021, using industry jargon for a chip fabrication plant. That December, encouraging U.S. investment in U.S. chipmakers, he said at a tech conference: “Taiwan is not a stable place.” In public, TSMC downplayed the comments, with its founder calling Gelsinger “a bit rude.” Privately, TSMC said it would no longer honor the discount, the sources said: about 40% off the $23,000, 3-nanometer wafers on which TSMC would print chips for Intel. Intel had to pay full price, shrinking its profit margin on the deal. The bet on which Gelsinger staked Intel’s future came less than two months into his tenure: a global foundry that could vie with TSMC. In March 2021, he promised to invest $20 billion in two Arizona factories. That July, he said Intel also would develop five manufacturing processes in four years. Among them was 18A, a bundle of technologies under development that he hoped would restore Intel’s manufacturing excellence. Intel’s ambitious new process for making chips for other firms – 18A – also remains a question mark. Some customers have been disappointed by what they’ve seen of 18A. When one big prospect, chip and software company Broadcom (AVGO.O), sent foot-wide wafers through Intel’s 18A process, the process was not ready for high-volume production for external customers, Reuters reported in September. No more than 20% of the chips printed via 18A passed Broadcom's early tests, two people briefed on the results said. That is low compared to TSMC’s early-stage yields. Broadcom told Reuters it has “not concluded” its evaluation of whether to use Intel’s foundry. Apple (AAPL.O) and Qualcomm (QCOM.O), among other potential clients, have passed on 18A for technical reasons, three people with knowledge of their decisions said. Both companies declined to comment. Another toxic leader bites the dust https://lnkd.in/g3HxYqy6

Intel keeps making moves that weaken its competitive stance - and likely ability to survive as an independent company. Intel is facing declining revenues—from $79 billion in 2021 to $54 billion in 2023, with a $16.6 billion loss in the third quarter of 2024. Intel now plans to spin off its core foundry business into an independent subsidiary. The foundry is the heart of Intel’s manufacturing innovation and IDM 2.0, which is crucial to Intel’s future – not to mention tied to billions in federal funding around chipmaking and national security. At this point the question appears to be who will buy what is left of Intel?

Intel's strained relationship with TSMC, fueled by CEO Patrick Gelsinger's comments about Taiwan's stability, has had significant consequences. Gelsinger's remarks, aimed at securing US subsidies, alienated TSMC and resulted in the withdrawal of a substantial 40% discount for the 3nm process. This setback, coupled with internal challenges and external doubts about Intel's 18A process, raises concerns about the company's ability to regain manufacturing leadership. #Intel #TSMC #TechGiants #Foundries #Chips #ChipMaker #Semiconductor #Semiconductors #SemiconductorManufacturing #SemiconductorIndustry #Technology #Innovation #Business #Geopolitics

Includes good description of IDM and Foundry Model as well.

TSMC founder says firm to see 'most severe' challenges from US restrictions: report (TSM, NVDA, AAPL) Taiwan Semiconductor Manufacturing (TSMC) founder Morris Chang said the company faces its "most severe" growth challenges as the U.S. restricts advanced chip exports to China. "TSMC is now truly a turf all major powers want to secure," Chang said, noting that "free trade of semiconductors, particularly the most advanced semiconductors, has died." “In such an environment, our challenge lies in how to continue to drive growth”, he added. TSMC, which supplies top AI chips globally and is a major supplier to Apple and Nvidia, is limited from selling its most advanced AI chips to Chinese customers as part of U.S. efforts to curb China’s technology access. China accounts for 10% of TSMC's revenue. #TSMC #TSM #TSMStock #TaiwanSemiconductor #TaiwanSemiconductorStock $TSM

Is Intel Considering a Major Shift in Its Manufacturing Strategy? Intel is at a crossroads in its business strategy, as one of its executives recently hinted at the possibility of spinning off its manufacturing unit. This potential move could reshape the semiconductor industry and redefine Intel's position in the global market. Key Highlights: "Open Question" on Spinoff: Intel's executive suggests that separating its manufacturing business is under consideration, aiming to streamline operations and maximize efficiency. Current Strategy: Intel has been heavily investing in its Integrated Device Manufacturing (IDM) 2.0 strategy, balancing its chip design and manufacturing businesses. Impact on the Semiconductor Industry: A spinoff could create ripple effects across the supply chain, impacting competitors, suppliers, and industry dynamics. Competitors’ Influence: Companies like TSMC, which focus exclusively on chip manufacturing, have gained a competitive edge in recent years. Intel’s potential move might be a strategic response. Opportunities and Risks: While spinning off the unit could attract new investments and focus, it could also pose challenges in maintaining tight integration between chip design and manufacturing. What’s Next? Intel’s decision could signal a significant shift in its long-term strategy. This "open question" is sure to spark debate among industry leaders and investors alike. 💬 What do you think about Intel potentially spinning off its manufacturing unit? Will it strengthen their position in the semiconductor industry, or create new challenges? Share your thoughts! 📢 Join our VLSI Connect News channel on Telegram: https://lnkd.in/gk4gyWvt 📰 Stay updated with VLSI Connect News on LinkedIn: https://lnkd.in/g5aYa3Cp 🔗 Explore more on our website: https://vlsiconnect.com/ 🎧 Listen to our Weekly news on Spotify: https://lnkd.in/gr2Dj66M https://lnkd.in/geujqzNT

Intel rejects Arm's approach for product division: Report - The Economic Times https://lnkd.in/gVwnRN4J As many can see, the only reasonable future Intel Corporation has is by keeping design and products in a fabless company and spin off the manufacturing into another company (not just a separate entity) Arm probably thought the same and it seems approached Intel CEO Pat Gelsinger and the board of Intel to acquire the non-manufacturing piece. For whatever reasons (I think self-preservation is a pretty strong reason) this, if the offer did come, has been spurned. Earlier there was news of similar offer from Qualcomm, also it seems spurned. Intel management may not do the right thing unless forced into it.

🗞 Electronic News! 🗞 Intel has approached both former board member Lip-Bu Tan and Matt Murphy, CEO of Marvell, about taking the CEO post following the departure of Pat Gelsinger earlier this week, according to Reuters. The news agency reported that these two are among a “handful” of semiconductor industry executives who are being considered for the post. However, speaking at a UBS financial conference, David Zinsner, CFO and an interim-CEO at Intel, has said the next CEO will have experience both in manufacturing and chip product as Intel’s core strategy remains intact. This was also reported by Reuters. #electricalengineering #electronics #embedded #embeddedsystems #electrical #computerchips Follow us on LinkedIn to get daily news: HardwareBee - Electronic News and Vendor Directory

"Mr Gelsinger’s response was to split the design and manufacturing sides of the business, allowing the former to choose the best foundries for its needs while freeing the latter to serve other chip designers. He declared, optimistically, that Intel’s new foundry business would become the world’ssecond-largest by 2030, behind only TSMC. The strategy has fallen apart spectacularly. To turn Mr Gelsinger’s foundry vision into reality, Intel splurged $100bn on production sites across four American states—just as its profits were evaporating. Its core business of central processing units has slowed as AMD, a long-time rival, has nabbed customers, and it has failed to gain traction with its Gaudi AI chips." https://lnkd.in/gaP8Vuf5