News Intel’s new CEO gets a $1 million salary plus $68 million in bonuses

[bit_user]

You made my point......
They can and did stop expanding and they can use 18A to recover financially.
(and either keep expanding right away if it's a big success or postpone it a few years.)

Current schedule is for the Ohio fab to come online in 2030. It was originally scheduled to come online in 2025. So, that's something they sunk a bunch of money into, and will require a lot more, before it even begins paying for itself. In the meantime, it's just sitting there.

https://www.tomshardware.com/tech-i...xt-decade-first-fab-now-coming-online-in-2030
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There's a reason they planned for it to come online in 2025. That's because they needed its production volume for successful execution on IFS's financial plan. With it being delayed until 2030, how much production volume will Intel even be able to offer 3rd party customers? Less volume means less ability to recoup the R&D costs of 18A and fund development of future nodes.

 

[Gururu]

You made my point......
They can and did stop expanding and they can use 18A to recover financially.
(and either keep expanding right away if it's a big success or postpone it a few years.)

If 18A kicks off with good silicon production this year, the company value will skyrocket guaranteed.

 

[TerryLaze]

Current schedule is for the Ohio fab to come online in 2030. It was originally scheduled to come online in 2025. So, that's something they sunk a bunch of money into, and will require a lot more, before it even begins paying for itself. In the meantime, it's just sitting there.

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https://www.tomshardware.com/tech-i...xt-decade-first-fab-now-coming-online-in-2030​

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There's a reason they planned for it to come online in 2025. That's because they needed its production volume for successful execution on IFS's financial plan. With it being delayed until 2030, how much production volume will Intel even be able to offer 3rd party customers? Less volume means less ability to recoup the R&D costs of 18A and fund development of future nodes.

Funny how the article you post says something different, they slowed it down because they don't expect enough volume for them to open it before 2030.
They DID NOT need its production volume for successful execution on IFS's financial plan, they just saw an opportunity for more money, but the market changed so they slowed it down but can ramp the building up again when they need to.

 

[bit_user]

Funny how the article you post says something different, they slowed it down because they don't expect enough volume for them to open it before 2030.

It's hard to know how much of that is spin. My point remains that they still need to sink a lot more money into it, before it earns them any income. And whether they don't need it because they don't have customers or whether they won't get enough customers because they're tight on fab capacity - it shows how far off they are from the original IFS plan.

the market changed so they slowed it down but can ramp the building up again when they need to.

The market didn't change. There's still pent up demand for TSMC N2, with customers complaining it's too expensive.

And I definitely think it's spin, the way they say they can bring in the target date. I think that's a coded message to funding sources, like the US Government, that they could pick up the pace if more money were made available. Otherwise, there's still too much work left to do for them to complete it in a timeframe truly based on market demand. Customers will reluctantly buy wafers maybe a year ahead-of-time, but not much more than that.