now that the halt news has past, I'd like to comment on Intel firing 12,000 employees.
consider for a moment: this is the year that intel falls behind in semiconductor process technology.
Intel has been enjoying a comfortable lead, but this year TSMC opens up a 10nm fab.
Intel recently disclosed that they wont be able to open up a 10nm fab until at least the end of NEXT year (I don't believe their press-release hype) ... I'd bet that internally, Intel forecasts big trouble for itself from here on out, because they just do not have the lead in technology anymore (if you have Intel stock, consider whether you really want to keep it).
things would be different if Intel was running a Pure-play or IDM business model, but because they aren't there is no way that they will be able to keep their fabs busy when Pure-Play and IDM fabs have the same or better process technologies.
on top of all this, Intel had locked in lower yields than everyone else in their rush to be first to a 14nm fab.
when AMD can buy time on TSMC's 10nm fab while Intel can't buy time on anyone's fabs tells the story (it is technically possible for Intel to buy time on another manufacturers fabs, but it would be suicide for that company, as they will lose their PP/IDM status).
this truly sounds like a good opportunity for AMD to take some market share from Intel.
if Intel ends R&D by massive layoffs, spends TENS of Billion$ on buying crappy companies (McAfee, Altera, etc.) and focuses just on trendy overhyped fads (cloud, experience, and IoT), they are doomed. Krzanich seems to be following Microsoft's footprints on a journey from market dominance, to mediocrity, to destruction.
laying off your own core competency engineers and buying up companies to plug together some quick, sketchy business model has had ... "problems" in the past, demonstrated over and over and over.
they are laying off people because their own forecasts are grim. they lost the lead in fab process, and by the time they finally get a 10nm fab up and running they will only be catching up to the two other semiconductor manufacturers that have already had 10nm fabs running off chips for a year or more.
Intel hasn't actually gotten good yields from either of their last 2 shrinks, and the next shrink isnt scheduled until the end of 2017.
meanwhile TSMC opens up a 10nm fab this year.
imo, Intel is as fragile right now as Motorola was near the end.
perhaps one day in the not-so-distant future, as the dust settles around the husk of the behemoth-formerly-known-as-Intel, POET (perhaps with Consortium+Angel_MegaCo) will acquire Intel's patents (if there remain any relevant ones that aren't obsolete).
see you on May 16th.
GLAL,
R.
