Intel delays manufacturing in Ohio

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In a note published yesterday to Intel’s Newsroom, titled Ohio One Construction Timeline Update (recommended reading), the company announced that its
[See the full post at: Intel delays manufacturing in Ohio]

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rick41, Fred, kandb, KB6OJS, Alex5723

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Isn’t Intel on the verge of selling its Fabs to TSMC… ?

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Alex5723 wrote:

Isn’t Intel on the verge of selling its Fabs to TSMC… ?

Unclear. That’s been reported, but there’s been no further information. And anything involving the fabs will get the Feds involved.

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Alex5723

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That is very sad news indeed. I have extended family in OH but I don’t know if this affects them or not, at least directly; I’ll have to ask around to see.

I do know that AMD’s processors seem to be in higher demand than the Intel chips, as they are less expensive and more prevalent in the packaged-to-go consumer-level computers. I mainly look just at laptops these days, because (1) I’m retired, so I’m not looking at desktops; and (2) I’m mainly looking at laptops for myself and my family. Choosing an Intel chip on most consumer-level systems instead of the AMD processor kicks the price up by about $50 to as much as $100, if memory serves (and at my age, it often doesn’t ).

For myself, I prefer an Intel chip and other mid- to high-end options (display resolution and size, RAM, disk size and graphics) for performance, but for my wife and kids/grandkids I usually go for the less-expensive options because they generally don’t make their computers go through as many hoops as mine.

//Steve//

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Charlie

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OK… I read Will’s post and the link included; didn’t spend a lot of time analyzing the link information for some underlying meaning that one would have to think through as the link came from Intel corporate and that makes me think of “weasel wording” as in there’s some hidden meaning in the wording.  Well, the “fab” (new term for me) in on hold for years in Ohio and 28 bazillion dollars is a tremendous investment to now learn from corporate and publish “well folks we’ve got to stand down for a while”.  Aren’t there some really so-called intelligent people in that operation that could have/should have figured out the long range better than to start this huge project and then slow to a crawl because the company now finds the future doesn’t look so positive for chip manufacturing.

I thought of the attempt to onshore Craftsman hand tools manufacturing a few years ago with the large campus aka a plant in Fort Worth, Texas.  A beautiful building and area constructed and the operation hardly happened.  While construction jobs were created and workers were paid, I’m on board with that, the fact that very few tools ever rolled out the door and all the land that was plowed under in favor of what is an empty “campus” that’s for sale, when I last checked, is tragic.  The land loss alone is deplorable (https://www.dailymail.co.uk/news/article-12326785/Craftsmans-90M-plan-bring-manufacturing-Texas-flopped-faulty-robots.html).

I certainly will hope the Intel facility will not suffer the same fate but to know will take years.  I also wonder if the business climate Intel commented on and their realignment, etc has anything to do with the current Washington administration.  That also will take time to know.

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rick41, SueW

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https://www.askwoody.com/forums/topic/intel-reports-fourth-quarter-financial-results/#post-2748670

..and following post

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kandb wrote:

“fab”

I worked for semiconductor manufacturer General Instrument in the ’70s. Although I was not involved in chip fabrication, I visited fabrication facilities on several occasions to consult on some software issues. I had certainly heard the term before that, but everybody at that time simply called chip manufacturing plants “fabs.” It’s not new slang.

kandb wrote:

28 bazillion dollars

I think that’s the point. Slow down the construction project and you slow down your cash flow. Such actions usually result in a higher long-term cost, but assuming that Intel is on the block, buyers may prefer to make those long-term decisions themselves.

kandb wrote:

the company now finds the future doesn’t look so positive for chip manufacturing.

The future of chip manufacturing is very strong, and essential. The only question is Intel’s future role.

kandb wrote:

the current Washington administration.

The CHIPS act was passed with strong bipartisan support during the previous administration. I believe that the current administration has even stronger concerns about onshore manufacturing and the national security implications of chip manufacturing. My opinion is that no political problems will ensue. There may be closer scrutiny of the money, but the amount allocated to Intel is a small fraction of the appropriation.

However things work out with Intel, I believe these new fabs will be completed.

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How if anything does this delay relate to any CHIPS act funding Intel got? I definitely can understand Intel has a serious capital problem right now and probably do want to hold off on investments. I mostly have always used Intel CPU’s but my last couple Raptor Lake ones probably will be my last.

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https://www.askwoody.com/forums/topic/intel-reports-fourth-quarter-financial-results/#post-2744503

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TSMC pitched Intel foundry JV to Nvidia, AMD and Broadcom

TSMC (2330.TW), has pitched U.S. chip designers Nvidia (NVDA.O), , Advanced Micro Devices (AMD.O), and Broadcom (AVGO.O), about taking stakes in a joint venture that would operate Intel’s (INTC.O), factories, according to four sources familiar with the matter.
Under the proposal, the Taiwanese chipmaking giant would run the operations of Intel’s foundry division, which makes chips adapted for the needs of customers, but it would not own more than 50%, the sources said. Qualcomm (QCOM.O), has also been pitched by TSMC, according to one of the sources and a separate source…

https://www.investing.com/news/stock-market-news/tsmc-pitched-intel-foundry-jv-to-nvidia-broadcom-and-amd-reuters-3922610

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Intel hires former board member as new CEO in struggling chipmaker’s latest comeback attempt

Struggling chipmaker Intel has hired former board member and semiconductor industry veteran Lip-Bu Tan as the latest in a succession of CEOs to attempt to turn around a once-dominant company that helped define Silicon Valley.

Tan, 65, will take over the daunting job next Tuesday, more than three months after Intel’s previous CEO, Pat Gelsinger, abruptly retired amid a deepening downturn that triggered massive layoffs and raised questions about the chipmaker’s ability to survive as an independent company..

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Intel, TSMC tentatively agree to form chipmaking joint venture

Intel (INTC.O), and Taiwan Semiconductor Manufacturing Co (2330.TW), have reached a preliminary agreement to form a joint venture to operate the U.S. chipmaker’s factories, the Information reported on Thursday, citing two people involved in the discussions.
TSMC, the world’s largest contract chipmaker, will take a 20% stake in the new company, the report said…

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Intel to reportedly fire 20 per cent of its staff this week

Intel may fire 20 per cent of its staff this week

The layoffs are reportedly aimed at streamlining management

It would be the first restructuring move since CEO Lip-Bu Tan took over

Intel is firing 20 per cent of its staff this week, according to a report by Bloomberg. These layoffs are reportedly aimed at “eliminating bureaucracy”, streamlining management, and rebuilding a more engineering-focused culture. This marks the first major round of job cuts under new CEO Lip-Bu Tan, who took over leadership of the company last month. While the exact number of impacted employees or the timing of the layoffs remains unclear, the cuts could affect thousands of workers globally…

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