Out of the Box Thinking for Intel

Over the last year, there have been many stories about how Intel has lost market leadership in process technology and has had trouble meeting some of the demand for PC and server chips as both markets heated up in 2020.

Intel is still at least two years away from moving to 7 nm while TSMC and Samsung are already at 7nm and working on 5 nm for 2023. At the same time, demand for processors is rocketing due to higher demand for chips beyond PCs and servers for use in the auto industry that is moving rapidly to electric cars, IoT, and edge computing devices, and high interest in digitizing just about everything we use in our daily lives.

Intel is investing in upgrading their current fabs and expanding their current fab in Viet Nam, but my good friend, Jim McGregor, a Principal at Trias Research, wrote a piece for EE Times this week that theorizes a way for Intel to expand their fab strategies faster.

The entire article is worth a read but here is the crux of his theory:

The Plan (in theory)
“Now, everything I said until now indicates that it’s a bad time and a huge challenge to spin-off Intel’s manufacturing, so I propose going the other way. Rather than spinning off its manufacturing group, Intel should instead acquire GlobalFoundries.

This would give Intel instant access to more fab capacity for some of the product lines that are already outsourced and even some Intel products that can be manufactured on older process nodes. GlobalFoundries has fabs in Germany, Singapore, and the US. And although GlobalFoundries has stepped away from competing with TSMC and Samsung on the latest process node, it is still one of the top three semiconductor foundries in the world and the most geographically dispersed.

For GlobalFoundries’ largest investor, the Abu Dhabi Government through the Advanced Technology Investment Company (ATIC), the company’s progress to success has been slow and any hopes of building semiconductor fabs in Abu Dhabi appear to be gone. Now that GlobalFoundries is profitable, it can no longer be purchased at a bargain price, but I am sure the Abu Dhabi government would be interested in investing in other industries more likely to diversify the region’s economic base.

Through the acquisition, Intel would gain a management team that understands how to be successful as a foundry, and personnel accustomed to working with outside semiconductor customers. So, I would propose that the GlobalFoundries team lead the integration and eventual transition to being a foundry. Intel could continue to invest in more capacity, including at GlobalFoundries’ newest site in Malta, New York, which has the infrastructure and land for additional fab capacity.

Then, when Intel is in a good position competitively and has extra capacity, it could spin off the manufacturing group while maintaining an interest as both an investor and its largest customer. This would free Intel from the financial and capital overhead of being a semiconductor manufacturer while assuring that it has ample fab capacity for at least the foreseeable future. Intel would still have the option of leveraging TSMC as a manufacturing partner as well as providing the company with a dual foundry capacity with what would likely be the two largest foundries in the world.”

In the article, Jim did point out that the Intel and Global Foundries cultures would likely clash but that this could be managed. More importantly, Intel could gain, in the short and long term, more capacity to meet the increasing demand for processors needed to power our future digital world.

As I read Jim’s article, which I agree in theory could be an interesting strategy for Intel to at least explore, I could not get a sense of how incoming Intel CEO Pat Gelsinger would view this idea.

Pat Gelsinger is one of the smartest people I know. I got to know him when he was Andy Grove’s technical assistant and as he rose through the ranks at Intel until he left 11 years ago to EDS and then become CEO of VMWare.

He does not start in the CEO role until Feb 15th but I am sure he has been in discussions on how to move Intel forward at a time when they have lost ground to AMD and the competition for chips of all kind are accelerating.

Knowing how much Gelsinger is loved inside Intel, his transition to becoming their new CEO should be seamless. However, he will inherit one of the biggest challenges in Intel’s history and he may need to consider many non-traditional ways of doing business if he is to set Intel back on solid ground and moving forward again.

Perhaps acquiring Global Foundries could be one of those out-of-the-box ideas worth serious consideration.

Published by

Tim Bajarin

Tim Bajarin is the President of Creative Strategies, Inc. He is recognized as one of the leading industry consultants, analysts and futurists covering the field of personal computers and consumer technology. Mr. Bajarin has been with Creative Strategies since 1981 and has served as a consultant to most of the leading hardware and software vendors in the industry including IBM, Apple, Xerox, Compaq, Dell, AT&T, Microsoft, Polaroid, Lotus, Epson, Toshiba and numerous others.

1,001 thoughts on “Out of the Box Thinking for Intel”

  1. Hey! I know this is kinda off topic however I’d figured I’d ask.
    Would you be interested in exchanging links or maybe guest authoring
    a blog post or vice-versa? My site covers a lot of the same subjects as yours and I believe we could
    greatly benefit from each other. If you are interested feel free to send me an e-mail.
    I look forward to hearing from you! Excellent blog by the way!

  2. Very good blog! Do you have any tips and hints for
    aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything.
    Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many choices
    out there that I’m completely confused .. Any suggestions?
    Bless you!

  3. Do you mind if I quote a few of your articles as long as I provide credit and sources
    back to your website? My blog is in the very same niche as yours and my visitors would certainly benefit from a lot of the information you provide
    here. Please let me know if this okay with you. Cheers!

  4. When I originally commented I clicked the “Notify me when new comments are added” checkbox
    and now each time a comment is added I get three emails with the same comment.
    Is there any way you can remove people from that service?
    Bless you!

  5. Thank you for some other informative web site. Where else may I am getting that
    type of info written in such an ideal manner? I’ve a venture that I am just now running on, and I have been at
    the look out for such information.

  6. I’ve been exploring for a little for any high quality articles or
    weblog posts on this kind of house . Exploring in Yahoo I finally stumbled upon this web site.
    Reading this information So i am glad to exhibit that I have an incredibly good
    uncanny feeling I discovered exactly what I needed.
    I most for sure will make sure to don?t forget this web site
    and provides it a glance regularly.

  7. Magnificent goods from you, man. I have understand your stuff previous to and
    you’re just too fantastic. I really like what you’ve acquired here, certainly like what you’re stating and the way in which you say it.

    You make it entertaining and you still care for to keep it smart.

    I can’t wait to read much more from you. This is actually
    a terrific website.

  8. Great post but I was wondering if you could write a litte
    more on this topic? I’d be very thankful if you could elaborate a little bit
    more. Appreciate it!

  9. You actually make it seem so easy with your presentation but I
    find this topic to be actually something that
    I think I would never understand. It seems too complicated and very broad for me.
    I am looking forward for your next post, I will try to get the hang of it!

  10. Terrific work! This is the type of info that should be shared across the internet.
    Disgrace on the seek engines for now not positioning this post upper!
    Come on over and visit my website . Thank you =)

  11. I know this if off topic but I’m looking into starting my own weblog
    and was wondering what all is needed to get setup? I’m assuming having a blog like yours would cost a pretty penny?
    I’m not very web savvy so I’m not 100% sure. Any
    suggestions or advice would be greatly appreciated.
    Thank you

  12. You really make it seem so easy along with your presentation however I in finding this topic to be really one thing that I feel I’d never understand.
    It sort of feels too complex and very vast for me.
    I am having a look ahead in your subsequent put up, I will try to get the hang of it!

  13. Yeni nesil diş protezi, son teknoloji ve malzeme gelişmeleriyle diş eksikliği sorununa modern çözümler sunar. Yeni nesil diş protezi hafif ve dayanıklı malzemelerle üretilir. Bu protezler, estetik açıdan doğal bir görünüm sağlar. Bilgisayar destekli tasarım ile kişiselleştirilen Yeni nesil diş protezi, daha rahat bir kullanım ve doğal çiğneme yeteneği sunar. İmplant teknolojisinin entegrasyonuyla güvenilir bir tutuş sağlayan yeni nesil diş protezleri, kullanıcıların konforunu artırarak günlük yaşamlarını kolaylaştırır. Diş hekimleri tarafından özenle tasarlanan Yeni nesil diş protezleri, bireylerin estetik ve fonksiyonel ihtiyaçlarına modern, çağdaş ve etkili bir yanıt sunar.

  14. Parapsikoloji ve Psişik Yeteneklerin Keşfi
    Psişik fenomenler ve ruhsal yeteneklerin incelendiği bir platformdur. Burada Parapsikoloji sitesinde parapsikoloji konularında derinlemesine bilgi bulabilir, farklı psişik yetenekler hakkında keşifler yapabilir ve ruhsal gelişiminizi destekleyen yöntemler öğrenebilirsiniz.

    Parapsikoloji Nedir?

    Parapsikoloji, olağan dışı fenomenleri, psişik yetenekleri ve paranormal olayları inceleyen bir bilim dalıdır. Bu alandaki araştırmalar, telepati, telekinezi, telepaţi, ruh çağırma, durugörü, prekognisyon (geleceği önceden görme) ve benzeri konulara odaklanabilir. Parapsikoloji, geleneksel bilim metodlarından farklı olarak, daha ziyade olağan dışı fenomenlere yaklaşarak onları anlamaya çalışır.

    Parapsikologlar, bu tür fenomenleri bilimsel yöntemlerle incelemeye çalışırlar, ancak parapsikoloji genellikle bilim camiasında tartışmalı bir konudur ve bilimsel yöntemlere tam olarak uymadığı düşünülen birçok yöntem içerir.

    Bu alandaki araştırmalarda, laboratuvar ortamlarında yapılan deneylerden saha çalışmalarına kadar çeşitli yöntemler kullanılır. Ancak, parapsikoloji genellikle bilim camiasında eleştiri ve şüpheyle karşılanmıştır, çünkü birçok deneyin tekrarlanabilir olmaması ve sonuçların genellikle istatistiksel olarak anlamlı olmaması gibi nedenlerle bilimsel standartları karşılamada zorluklar yaşanmıştır.

    Parapsikoloji, bilimsel yöntemlerle çalışma iddiasında olmasına rağmen, birçok bilim insanı tarafından bir “sınır bilimi” olarak değerlendirilir ve hâlâ bilim camiasında kabul görmemiş bir alandır.

  15. There are very few negatives when it comes to Party Casino. While you do need an account to fully navigate the site, you’ll discover an attractive interface that is easy to navigate. The welcome offer at Party Casino is not onerous to achieve compared to other online casinos, checking in at an 8x wagering requirement, but the amount that is available and the unique distribution is interesting. As with most online casinos, it does come down to the games. Jackpot slots offer the best cashback rates of 0.5%, but the 0.25% cashback on regular slots and instant win games is a touch lower than rival NJ casinos. Roulette (0.10%) and blackjack video poker (0.05%) bring up the rear. Be wary, though; if you don’t play on the PartyNJ site for 90 days consecutively, your cashback will be forfeited.
    https://affinity-space.com/community/profile/2812cccliii219c/
    An online casino no deposit bonus is not like this. All you have to do, is register an account with the online gambling platform and you are given the casino no deposit bonus for free! This is what makes no deposit bonus casinos USA some of the best online gambling platforms available. Sweden PayPal Casinos: Sweden is renowned for its delightful nature and its tolerant laws that work for web-based gambling as well. Luckily, Sweden is mentioned for the short rundown of the nations with PayPal being a potential alternative for casinos deposits that are web-based. Accordingly, you may make any amount of deposit in cash into the Swedish PayPal casinos in practically no time. As usual, the coolest casinos in Sweden with PayPal acceptance are included our rundown of PayPal casinos. PayPal works like a separate checking account for use at online vendors. A user will deposit money into their PayPal account via bank transfer, debit card or credit card and then use the money at online casinos. It’s the fast, easy, and safe choice for players.