What is wrong with Intel?

1 year ago
88

Everyone is talking about how Nvidia has become America’s most valuable semiconductor company and is approaching a $1 trillion market capitalization. Nvidia is fabless meaning it designs but does not manufacture semiconductors. In contrast, Intel both designs its own chips, as well as manufacturers both its own chips and other company’s chips.
Intel rose to power in the 80’s and 90’s making CPUs. In the 2000s, the company failed to make progress producing chips for cellphones and computer graphics.
The current situation stems from a botched transition in how chips are made.
Intel’s current plan is to expand factories and create foundries to attract orders.
Currently there is a glut of chips in the market.
On April 27th, the company posted its worst quarterly loss in its history. It’s undertaking aggressive cost cutting. A $200 million research center in Israel was scrapped as well as a $700 million lab in Oregon.
The goal is to make Intel the second biggest contract chip maker after TSMC.
To be transparent, I own TSMC, I like TSMC, but I acknowledge the risk of a mainland invasion of Taiwan. If this invasion does happen, that might help Intel.
Works Cited:
https://www.wsj.com/articles/intel-gelsinger-nvidia-turnaround-30febac6?mod=hp_lead_pos5
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