News Intel Foundry and Arm to Collaborate on 1.8nm Mobile SoCs

[bit_user]

That 23bil is their spending money, the amount they made or are investing/spending short-term.
Retained earnings is what they saved up since they opened up.

That's double-counting, as far as I can tell. From the same page you linked, look at assets:

Current assets:
Cash and cash equivalents $11,144
Short-term investments $17,194
Accounts receivable $4,133
​

I think Retained Earnings is just a designation given to the profit they carry forward, but it doesn't mean they don't do anything with that money. What cash they actually have is listed under Assets.

Indirectly, by everything you say.

Well, then either you're not reading everything I say or maybe you're interpreting it through some kind of extreme partisan lens. I praise or criticize companies when I think they deserve it.

I've been one of the main defenders of Intel's hybrid desktop strategy (P+E cores), of late. Furthermore, I've actually been pretty defensive of Gelsinger, and I know you've seen some of that, so maybe it's more a case of selective memory. I never once accused Intel of incompetence - just underinvestment in R&D (before Gelsinger).

You think that they made plans to build up that many FABs without having any idea of what they are going to do with them...

No, I think they planned to grow their IFS division by attracting lots of customers, and then spin it off to operate as a completely independent business.

 

[TerryLaze]

That's double-counting, as far as I can tell. From the same page you linked, look at assets:

Current assets:
Cash and cash equivalents $11,144
Short-term investments $17,194
Accounts receivable $4,133
​

I think Retained Earnings is just a designation given to the profit they carry forward, but it doesn't mean they don't do anything with that money. What cash they actually have is listed under Assets.

Any of the assets left over at the end of the fiscal year and are not put back into the company automatically become retained earnings.
It's not being double counted.

You can call it what you want but still, at the end of 2022 intel had 70bil in their back pocket, if they do something with it or not, and personally I wouldn't call anybody with 70 bil desperate for anything.

If they do use that money then they are even less desperate.

No, I think they planned to grow their IFS division by attracting lots of customers, and then spin it off to operate as a completely independent business.

Yeah, that's what I'm talking about.
So you think intel saw the market that, outside of covid boom, was pretty much covered 100% by existing FABs and in your mind intel seeing this said hey, you know what the market that is 100% covered for FABs needs?! A new FAB service!
How does that make any sense?!
That's why you think that intel is desperate for ARM and anybody else, because you think that intel started the FABs because PAT was bored that morning and had nothing better to do.

 

[bit_user]

Any of the assets left over at the end of the fiscal year and are not put back into the company automatically become retained earnings.
It's not being double counted.

It's not assets that become retained earnings. It's net income (or losses) that gets transferred over to retained earnings. It's just an accounting label that's used to track that money. They draw down on retained earnings with dividends. It's done for the purpose of showing that the dividends aren't liquidating the company.

The actual money goes into cash, investments, and property, etc. And all of that stuff is accounted for. It's not like they keep $70B under a mattress.

You can call it what you want but still, at the end of 2022 intel had 70bil in their back pocket,

No, they don't.

Finance isn't my area of expertise, but I'm sure I'm not wrong about this. Maybe @Endymio or @palladin9479 can back me up.

So you think intel saw the market that, outside of covid boom, was pretty much covered 100% by existing FABs and in your mind intel seeing this said hey, you know what the market that is 100% covered for FABs needs?! A new FAB service!

I basically already explained how I think they arrived at their current plan, which was to look at the trend of R&D investment + CapEx required by each new node. It's increasing on an exponential scale, which they could see would increasingly eat into their profitability. At that point, you have 2 choices: 1) stop making your own chips; 2) increase volume by expanding your manufacturing arm beyond your own IP. They picked #2, because I guess they had confidence in their ability to stay competitive and felt more comfortable about that than depending on TSMC and Samsung for all the capacity they'd need.

That's why you think that intel is desperate for ARM and anybody else, because you think that intel started the FABs because PAT was bored that morning and had nothing better to do.

I never said anything of the sort. You're starting to put a lot of words in my mouth. This is arguing in bad faith and will not be tolerated.