News Intel mulls spinning off its manufacturing division

[Admin]

Intel is working with investment banks over strategic options regarding its manufacturing operations.

Intel mulls spinning off its manufacturing division : Read more

 

[Marlin1975]

More wow from intel. AMD did this as they were so far behind and needed cash bad, like near bankrupt bad.
How bad are things really at intel if this is on the board as an option?

 

[ezst036]

Intel is in deep trouble.

 

[Notton]

More wow from intel. AMD did this as they were so far behind and needed cash bad, like near bankrupt bad.
How bad are things really at intel if this is on the board as an option?

Yeah, AMD had a bad architecture in 2008, and their foundries were also garbage.
The spun-off side, Garbage Flounderies still remains, but it's pretty clear they are way behind and still produce hot running chips to this day.

 

[A Stoner]

I was an Intel fan for a long time. I think I owned Intel exclusively from around 1990 to last year. I have a AMD 7950X3D as my latest computer. I always wanted to switch to AMD, but they were always behind the bell curve by enough that I just was not willing to take the leap until the X3D processors came along.

While I am glad AMD and Intel are currently trading blows at the top end, it almost seems like Intel is on the way towards being second tier and we will eventually lose the competitive nature of the fight. I hope both companies can keep things humming along and keep the competition fierce so that growth is as fast as possible.

Maybe having Intel stick to just designing by getting rid of their fab will help. I guess time will tell. I think the thing that finally got me to step out of the Intel ecosystem was the thermals of their products. My computer room was just running way too hot.

The thing that attracts me most about AMD is the longevity of their platforms. My current motherboard and RAM should be valuable for several more years, whereas I would already be forced to upgrade at least the motherboard if I wanted to upgrade an intel processor.

gah lots of edits. 7950X3D not the unreleased 9950X3D LOL!

 

[MacZ24]

More wow from intel. AMD did this as they were so far behind and needed cash bad, like near bankrupt bad.
How bad are things really at intel if this is on the board as an option?

Maybe it's just that Intel foundries don't have enough clients because the prospective clients are weary of Intel having a look at their designs ? Going fabless would put a wall between design and production ? Just a theory.

 

[tracker1]

From my understanding of Intel's approach to CPU design, I'm not sure that this will help at all. They're to used to the mfg side hand holding them through the process. Will have to see how tsmc mfg chips works out for Intel.

Also if concern is the mfg itself. How well positioned are they to deliver say arm and other processors. They just literally offloaded their arm holdings which was a bad move in this light IMO.

 

[2Be_or_Not2Be]

If China takes over Taiwan, does the US really want Intel to be a design-only, no-manufacturing company? The risk you take with spinning off the manufacturing side is that they may choose to move some/all manufacturing to Malaysia/Vietnam/etc. to get back into the black (well, expand with those they're already in). The U.S. likely needs to preserve as much manufacturing in-house/in-country as possible, so perhaps the gov't might need to investigate a "sovereign" fund to put some financial stakes into Intel's manufacturing.

 

[DS426]

If Intel completely fails, as in bankruptcy proceedings (and this would be because they don't let go of IFS), I'm going to assume that nVidia will acquire them to fill in the rest of the vacuum beyond the additional market share that AMD gains. It's no secret that nVidia wants more action in the CPU market, and although ARM ISAs or more broadly RISC appears to be their teenage crush, x86 isn't going to be dead anytime soon.

 

[thestryker]

Intel has gotten slammed by "investors" who don't have a clue for years now. The problem right now is that they've taken real financial hits as Gelsinger has tried to repair the damage done by having finance people in charge of a capital intensive tech company. I highly doubt spinning off the fabs would fix anything at Intel and would likely kill off the foundry as leading edge. From what I've been able to gather there's likely internal restructuring that needs to be done and all selling off the fabs does is potentially help stock price.

 

[Gururu]

Investors right now have merely slapped Intel's wrist. Wall street is very detached from the Vmin issue and any other enthusiast complaint. The US has too much intellectual property at stake with Intel and the market knows this. If Intel loses, China wins. With upside to the current restructuring with regard to profits and good rep with its new chip line up, they will be stronger than ever next year if only because the US bails them out.

 

[SonoraTechnical]

nVidia might want to buy Intel... but would the US justice dept allow it?

these guys are not doing well... rings of AMD selling fabs off to Global Foundaries. The relationship between AMD as the designer and GF as the manufacturer didn't endure.

GF got allot of money and built those fabs in Malta, NY when Sec H. Clinton was investing in NY's 'Tech Valley'. Now GF is stuck at 14nm processes and larger at that facility. No more super hi-tech stuff there. AMD has turned to others for years for production.

Is that where Intel's fabs are now? perhaps too far behind others.

 

[vanadiel007]

I would have this message for Intel: never look for advice from banks, as they are going to provide advice on whatever makes them money.

Simply look at what went wrong, learn from and correct your mistakes. And make sure to keep your customers happy.