News Intel slapped with class action lawsuit over foundry revenues — litigants allege securities fraud

[kjfatl]

It is clear to anyone familiar with the business that Intel Foundry, or its equivalent has been losing money over the last 5 years. TSMC without government subsidies also loses money. Intel made multiple strategic mistakes and lost big time. About 5 years ago Intel recognized this and began righting the ship. Simply put, their foundry services will not make money until they have multiple fabs building leading edge and newer processes.
Four years from now, it is likely that Intel will be a full generation in front of TSMC and will be able to charge a premium for their high end processes.

 

[dalek1234]

Just like every other "class action" lawsuit.

Pretty much. I owned stock in a company that cooked its books. Lost $1,500 (about 3k in today's money). Got a letter from a layer that there is a class action lawsuit against the company to have them compensate investors who lost money (in stock value) during this "cooking" period. At the end, I got about $10 in compensation. Lawyers kept the the $1,490 to cover their fees.

Lawyers get paid first from these settlements. The plaintiffs get the leftover scraps. Class Action lawsuits are a scam. Only the lawyers win.

 

[Roland Of Gilead]

It is clear to anyone familiar with the business that Intel Foundry, or its equivalent has been losing money over the last 5 years. TSMC without government subsidies also loses money. Intel made multiple strategic mistakes and lost big time. About 5 years ago Intel recognized this and began righting the ship. Simply put, their foundry services will not make money until they have multiple fabs building leading edge and newer processes.
Four years from now, it is likely that Intel will be a full generation in front of TSMC and will be able to charge a premium for their high end processes.

Hmmmm. Intel's 5N4Y master plan.

So, they have just rolled out the 3rd node (or have they?) and have 2 nodes left to achieve by the end of 2025. With such low usage (I remember it being about 30% capacity for current fabs) I'm really not sure how this will be profitable even after 2025. Of course, whilst Intel are living this dream, TSMC are just sitting around twidling their thumbs. Doing nothing. No advancements being made, no targets, They'll just sit by and watch Intel take over!. Yeah, for sure 🤔

 

[cyrusfox]

Hmmmm. Intel's 5N4Y master plan.

So, they have just rolled out the 3rd node (or have they?) and have 2 nodes left to achieve by the end of 2025.

The 3rd node Intel 3 (Granite Rapids, Sierra Forest), only server products, that are to release this year
4th node 20A is Arrow lake expected release H2 2024,
5th node is 18A for products Panther Lake and Clearwater Forest expected 2025.

With such low usage (I remember it being about 30% capacity for current fabs) I'm really not sure how this will be profitable even after 2025. Of course, whilst Intel are living this dream, TSMC are just sitting around twidling their thumbs. Doing nothing. No advancements being made, no targets, They'll just sit by and watch Intel take over!. Yeah, for sure 🤔

Intel has made expensive bets on High NA tools buying out all tools this year, the which TSMC will not pursue till 2030 (TSMC will use litho tricks and process refinements to keep up). No one thinks TSMC is sitting idle, they are the #1 fab player, and Intels goal is only to become #2 by 2030(Default by all scenarios is still TSMC #1).

As for the 5 nodes in 4 years bit, I also don't see that being profitable in the near term (no customers and unproven). But that was needed to catch up in process technology and it looks like they plan to make them available at different cost tiers for external customers to slowly claw back the Investment from the graphic they released during their Foundry day [IFS direct connect].

I see positive signs coming out of Intel in terms of execution, Pat has made a lot of difficult decisions and it hinges on their ability to execute according to this plan. While Intel is not formidable yet, they appear to be on track to be competitive option.

The entire "not in Taiwan" angle has helped Intel secure $10's of Billions from Governments, this coupled with new fabs will position themselves to be a viable alternative option to current Foundry players.