Florin Lungu’s Post

Although many experts believed that Chips and Science acts would lead to reviving US supremacy in semiconductors by regaining Intel's lost glory, over the last 3 years, upon losing more than $150 billion market cap, Intel is about to disintegrate. Instead of engaging in firefighting through massive subsidies and triggering chip wars, what could have been a better management strategy for Intel?

Intel Corporation New Strategy: Increasing Collaboration with TSMC Intel Corporation is placing more orders with TSMC to expand production capacity for its Arrow Lake series processors. While this step indicates a decline in Intel's confidence in its own manufacturing facilities, it reveals that Intel is entering a challenging period not only in the consumer market but also in strategic areas such as data centre and artificial intelligence. Strengthening Cooperation with TSMC According to the report published by Ctee, Intel is following an important strategy to maintain its competitive advantage by increasing its orders to TSMC for the next generation Lunar Lake and Arrow Lake processors. In particular, the Arrow Lake ‘Core Ultra 200’ series stands out as a product line that symbolises Intel's decision to outsource. These models stand out as the first processor series where Intel's own production capacity is insufficient. Preparing for Next Generation Technologies: Foveros 3D Packaging and TSMC's 3nm Manufacturing Process Intel aims for higher efficiency by using Foveros 3D packaging technology in Arrow Lake processors. In the meantime, TSMC's 3nm manufacturing technology is also an important foundation for Intel's next-generation ‘Falcon Shores’ artificial intelligence GPUs. While this development indicates that Intel may become a larger TSMC customer in the future, according to some analysts, it also raises the possibility of Intel divesting its manufacturing division. The Future of Intel Foundry Until recently, Intel aimed to turn its own manufacturing unit, Intel Foundry, into a giant business line. However, it has had to postpone some of its plant projects due to recent huge investments and global financial difficulties. Intel Foundry's difficulty in even producing its own processors puts Intel in a difficult position to attract large customers. The 18A (1.8 nm) production process, which is planned to be commissioned in 2025, is seen as a turning point for Intel Foundry. Intel aims to take the lead again with this technology and states that the production process is progressing as planned. #Intel #TSMC #ArtificialIntelligence #ProcessorManufacturing #TechnologyTrend #Foveros3DP packaging #18A #LinkedInShare #linkedin

After a long conversation with old friend at Intel on the beach I was convinced Intel is in better shape then it seems. Based on public info(if you believe it) and my thoughts only: 1. Intel Lunar lake if mostly produced in TSMC, Design/fabrication decouple is completed. this is huge and makes intel stronger and more flexible. 2. The P cores are strong competitors to best ARM in ... Battery life, nothing I would think possible within the same performance. I initially thought intel has double product problems (design and fabrication), and leading product edge usually means downwards spiral. it seems that at least in design front Intel is doing well, even better than expected (Kudos IDC). Yet, The troubles are deep since the company cash flow has a big hole in it and it just lost a bunch of super talented people (the only thing more important then product, is the team building it), Intel should and likely will: 1. give significant retention to the staying talent. 2. Release cash from dreams(even ones that are going well): MobileEye, Alterra and other expensive "hobbies". 3. Sell 1 or 2 "half baked" FABs. Intel is built to last, I find it hard to believe it will disappear, though the risk is bigger than ever.

#Intel has faced several significant challenges in recent years that have led to a decline in its stock and concerns about its future: 1. Technological Lag: Intel was a dominant player in the processor market for a long time but has fallen behind in producing more advanced chips. For example, it couldn't implement 7nm technology as quickly as #AMD and #TSMC, making Intel's products less competitive. 2. Competition: AMD, its main competitor, has strengthened its position with the release of processors based on the Zen architecture, capturing more market share in both server and consumer processors. Additionally, #Apple transitioned to its own chips (Apple Silicon), leading to Intel losing a major client. 3. Management Issues: Internal management problems and leadership changes during critical times severely impacted Intel's strategy. The company missed opportunities to remain a leader in the semiconductor market, contributing to its technological lag. 4. Global Chip Shortage: The #COVID-19 pandemic caused a global semiconductor shortage, exacerbating Intel's problems. Competitors handled the crisis more efficiently, while Intel continued to lose ground. 5. Production and Quality Issues: Delays in releasing new processors, quality problems, and discrepancies between actual and advertised performance have hurt Intel's reputation among consumers and corporate clients. 6. Decreased PC Demand: The declining interest in personal computers and slower hardware upgrade cycles also negatively impacted Intel's revenue. Possible Consequences and Risk of #Bankruptcy: At this point, Intel's bankruptcy is unlikely, as the company still holds strong market positions and has substantial financial resources. However, to recover, Intel needs to take the following steps: Investment in Manufacturing: The company has already announced significant investments in modernizing its factories and developing new chips, which should help reduce its technological lag. Expanding Product Line: Intel is betting on new markets, such as autonomous vehicles and artificial intelligence. Reducing Dependence on U.S. Manufacturing: Investing in international factories, especially in Europe, could help Intel diversify its supply chain and reduce costs. While Intel is facing significant challenges, the company needs time to implement large-scale reforms and regain investor trust. And here is the image representing Intel as a sinking company.

Rumour. Intel May Be About to Lay Off Thousands of People Bloomberg is reporting that Intel is preparing to announce a new wave of redundancies that could affect thousands of people within the company.   The publication, which quotes people close to Intel, says that the news could be shared over the next few days. Even though the company reported a 9 per cent growth in revenue last quarter, it is believed that this quarter's results will not follow the same trend and the company will feel obliged to take action. It's important to emphasize that Intel is feeling increasing pressure from competitors such as Nvidia and AMD, with the company's aim now being to invest in semiconductor development and regain market share. https://ift.tt/EkS8usn

Rumor: Intel cutting forecast for Gaudi 3 by 30%? On one hand, a 30% cut in the shipment target—from 300,000-350,000 units to 200,000-250,000—signals a notable adjustment in strategy, likely in response to shifting market dynamics and internal assessments. This reduction could be seen as a negative indicator for Intel's AI ambitions, particularly given the competitive landscape dominated by NVIDIA. However, viewing this through a more optimistic lens, the projected revenue from Gaudi 3 in 2025 could still represent significant growth. With anticipated revenues of $3.1-$3.9 billion based on the revised forecast, this marks a substantial increase from the estimated $500 million in 2023. If Gaudi 3 performs well and meets its original targets, the revenue could even surpass $5 billion. While these numbers may seem modest compared to NVIDIA's expected $100 billion in revenue, they nonetheless could provide a crucial boost to Intel's data center business. This growth could be particularly important as Intel prepares for the future with its Falcon Shores GPU. The impact on the supply chain is notable as well. Companies like TSMC and ASE might not feel the pinch as severely due to high demand for advanced process capacities, but firms like Alchip, which specialize in ASIC design services for Gaudi, may face more significant challenges. This disruption could affect their stock prices and overall business health. Besides, brand manufacturers such as ASUS and Gigabyte have also been affected. The shipment rhythm of AI server products originally planned to be equipped with Intel chips will be disrupted. Semiconductor /drone broker: YM Innovation Technology (Shenzhen) Co.,Ltd Email: [email protected] [email protected] #HPC #5nm #Intel https://lnkd.in/gEAaytg4

💻 Intel: Leading the Charge for US Semiconductor Sovereignty 🇺🇸 As the semiconductor industry evolves, Intel finds itself at the forefront of the United States’ mission to secure technological self-sufficiency. Backed by the CHIPS and Science Act, Intel is poised to reshape global chip production and strengthen domestic manufacturing. Key Highlights: ⚡ CHIPS Act funding positions Intel as a cornerstone of US semiconductor strategy. 🌐 Geopolitical urgency: Taiwan’s reliance underscores the critical need for domestic alternatives. 🧩 Future technology: Intel’s 18A node, set for 2025, aims to leapfrog TSMC’s 3nm technology. 📊 Challenges ahead: Convincing Apple, Nvidia, and AMD to switch from TSMC to Intel. With US Commerce Secretary Gina Raimondo’s support, Intel’s role extends beyond manufacturing—it’s about ensuring national security and technological resilience. As geopolitical risks rise, Intel’s success could define the next chapter in global semiconductor leadership. 🔗 Read more about Intel’s transformative strategy and the future of the semiconductor industry on our website. https://lnkd.in/dN7yq5wp 🚀 Explore premium market insights with our 14-day free trial ➡️ https://lnkd.in/dYY8sjdf 💬 Stay updated on key market developments in our free Telegram group ➡️ https://lnkd.in/d243TCtz #Intel #Semiconductors #CHIPSAct #TechInnovation #USManufacturing #GeopoliticalRisk #InvestmentStrategy #TechnologyLeadership #SignalMasterMind #MarketInsights #SemiconductorIndustry #NationalSecurity

This month, Intel made a major announcement: their Intel 18A process technology is on track for high-volume production in the second half of 2025. This development isn’t just a milestone for Intel – it’s a game-changer for the entire semiconductor industry. But what does this mean? 🤔 Intel 18A brings two groundbreaking innovations that will revolutionize the way we think about chip performance and efficiency: 1️⃣ RibbonFET Gate-All-Around Transistors: A new architecture that increases transistor density while improving power efficiency and performance. This is a major leap forward from traditional FinFET designs. 2️⃣ PowerVia: Intel's industry-first backside power delivery system. By shifting power delivery to the back of the chip, it enables better performance scaling, lower power consumption, and improved signal integrity. For Intel’s Foundry customers, these advances mean access to cutting-edge technology that will drive future innovations. Think faster, more efficient chips across a range of industries—from AI and cloud computing to consumer electronics. As we look toward the future, the Intel 18A process is set to propel the semiconductor industry into a new era of performance, scalability, and efficiency. 💡 #Intel18A #SemiconductorInnovation #RibbonFET #PowerVia #ChipTech #FutureOfTech #Foundry

In early 1980s, Intel had 60% global market share of the memory chip market and memories accounted for 90% of revenue. Andy Grove, the CEO, was a super star in the tech world and the business world.   Around that time, Japanese manufacturers got into the business. They invested heavily in technology, manufacturing, and design to create a much superior and cheaper product and became a major disruptor and competitor Intel fought back by focusing on making products better, more sales focus, more advanced tech. The Japanese fought back by improving their quality even more at even lower prices. In 1985, the cost of one memory product fell from $17 to $4.50. Memories soon became a commodity. Inventories piled as did losses. Share price cratered. Andy and his team struggled with the path forward. Soon the Japanese had > 50% of the global market while Intel sank to 2%. The first line of the company’s 1985 annual report read: “It was a miserable year for Intel and the rest of the electronics industry.” The first line in the 1986 annual report read, “We’re pleased to report 1986 is over.” Andy realized that Intel was no longer relevant in memories. They needed to shift to microprocessors, a technology they had developed, that was in it’s growth and had huge potential. But it was a very tough choice. The culture of Intel viewed memory as “core technology”. He himself struggled with the idea of abandoning the business that Intel had started.   Andy asked Chairman Gordon Moore, “If we got kicked out and the board brought in a new CEO and Chairman, what would they do?” Gordon answered without hesitation, “They would get us out of memories.” Andy replied, “Why shouldn’t you and I walk out the door, come back and do it ourselves?” The revolving door test is about facing reality. About realizing that emotional investment in the past makes decisions about the future tougher. Andy’s decision to leave memories and focus on microprocessors was a brave and visionary one. Under him, Intel’s profits went from $78 Million in 1979, to -$173 million in 1986 to $1.9 Billion in 1997; and revenues went from $1.9 billion in 1979 to more than $26 billion in 1997. If you were fired tomorrow and a new, equally smart person was brought in your place, what would he/ she do differently? What would they stop and start doing? What tough decisions will they take that you won’t? #leadership #transformation #story #change #sunkcost #competition #storiesbythefireside *************************************** Short stories for leadership Stories by the Fireside is a collection of short stories for speakers, leaders, presenters, and facilitators. o A curated, ever-expanding collection of stories for your use. o Each story takes <3 minutes to read. o You can modify it, tell parts of it, skip what is not relevant o Convey the key message based on your objectives o The best resource for presentations that always wins

What is Wrong with #Intel? Intel’s board has faced major strategic missteps over the past two decades, including questionable #CEO hires and firings (e.g., Paul Otellini, Brian Krzanich, Robert Swan, Pat Gelsinger). Poor leadership choices have compounded Intel's challenges. Intel's strategy to challenge TSMC head-to-head has proven costly and ineffective, with billions of dollars wasted in failed efforts. The IDM model, while strong, faces immense competition from TSMC’s pure-play foundry model. Intel’s best path forward may involve, thought by Daniel Nenni: -Be acquired by Broadcom. -Bringing back Pat 2.0 and replacing the board of directors is another option. -A third option is for the U.S. Government to step in and prioritize semiconductor manufacturing. -Maybe Elon Musk can help Intel sort things out (kidding/not kidding). (Elon Musk often appears to be an omnipotent force, shaping industries with his bold vision and actions) #leaderships Semiconductor /drone broker: YM Innovation Technolgy (Shenzhen)Co.,Ltd Email: [email protected] [email protected] https://lnkd.in/gERumMMZ