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posted by Fnord666 on Wednesday July 29 2020, @03:46AM   Printer-friendly
from the golden-parachutes-are-not-for-enginners dept.


Intel is revamping its technology leadership in a bid to turnaround its manufacturing unit after announcing delays in its 7nm processes.

Last week, Intel said on its second quarter earnings report that its 7nm products would be delayed. Rival AMD is already on 7nm as is TSMC. Since Intel's earnings report and market cap hit, analysts have been speculating that the chip giant may leave manufacturing.

In other words, Intel needed to revamp its technology organization. Under Monday's reorg, Dr. Ann Kelleher will lead technology development. She had led Intel manufacturing. Kelleher will focus on developing 7nm and 5nm processes. Murthy Renduchintala, Intel's chief engineering officer, will depart Aug. 3.

Intel is also separating its Technology, Systems Architecture and Client Group unit into teams focused on technology development, manufacturing and operations, design engineering, architecture, software and graphics and supply chain.

Safe to say Intel will be best positioned to fire 3 executives at the next slippage - I guess that may make the stock rebound faster than firing a single one.

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  • (Score: 2) by takyon on Thursday July 30 2020, @02:36AM (2 children)

    by takyon (881) <> on Thursday July 30 2020, @02:36AM (#1028441) Journal

    Many of Intel's sales are to OEMs, datacenters, etc. They are certain to be charging a lot less to some of those customers than what official/tray prices would suggest. Things are happening behind the scenes, and Intel is no stranger to anti-competitive behavior [].

    While Intel's "14nm" CPUs are notably worse than AMD's "7nm" CPUs in some ways, especially power efficiency, the "14nm" process is very mature. They are getting great yields and pumping those things out as fast as they can sell them. Intel is "winning while losing".

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  • (Score: 2) by sjames on Thursday July 30 2020, @12:16PM

    by sjames (2882) on Thursday July 30 2020, @12:16PM (#1028558) Journal

    All of that bolsters my point. Intel doesn't know how to be the budget brand. With all the problems with their latest and greatest, they're still marketing as if they're infallible. They're making it on momentum for now, but that can only go on for so long.

    That's not to say they'll be closing their doors any time soon, behemoths like that take decades to die.

  • (Score: 2) by rleigh on Friday July 31 2020, @07:59AM

    by rleigh (4887) on Friday July 31 2020, @07:59AM (#1029176) Homepage

    The Intel strategy is to target the high-value end of the market and abandon the low end. The low end is completely lost to ARM and other low-cost CPUs and MCUs. The middle is increasingly taken by AMD. They lost their deal with Apple. They don't really have anywhere to go, do they? The future of the cloud is custom ARM systems like Graviton. It will save the cloud providers billions.

    I see them going the same way as IBM as they had to abandon their PC lines, until they were left with the big iron only. They too, chased after the most profitable sectors even to their long-term detriment. These companies have astronomical overheads in personnel and facilities, their strategy makes sense in preserving what they have for as long as they can do so. But CPUs have become a commodity item. It's no wonder other smaller and more nimble companies can undercut them with a better product. Any company which desires one can get their own custom ARM, Sparc or MIPS CPU fabbed with all the custom features they desire, or even custom amd64 silicon from AMD. Or they can adapt an off-the-shelf one. Intel doesn't allow any of that flexibility. In some ways, their fall from dominance is both entirely predictable, and long overdue. They distorted a healthy CPU market for decades, and their anticompetitive practices killed off their competitors and reduced progress.