Re: Intelís Stumble Signals AMDís Gain
Its an awkward situation using an outside foundry for Intel's most advanced chips. At some point, it needs to decide to either dump its foundries and be at the mercy of independent foundry companies or invest whatever it takes to bring itself back to the state of the art. Foundries are always very expensive. Running a halfway operation is the worst of both worlds: trying to spend the money to keep up with technological advancement while providing fat margin contracts that fund your competitor foundry's R&D to keep ahead of you. I have zero confidence in Intel management making a rational choice. Management has had this problem for years and wastes time on "diversification" while ignoring the fact that its core strength in foundries is being destroyed by neglect. Rational management would do a serious shakeup and peruse a patent exchange/licensing deal with Samsung(preferred) or TSMC to catch up technology wise. A joint venture with Samsung to leapfrog to 5nm or 3 nm technologies together(with Intel providing disproportionate JV capital to offset their inferior technology position) would make a lot of sense.
Intel's management incompetence reminds me of the old IBM--once the worlds most advanced chip maker, computer designer, hard disk maker among a long string of superlatives. All destroyed by short sighted management including the great Louis Gerstner applauded as a management genius for increasing short term cashflow while destroying the worlds greatest computer and semiconductor company.