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> Intel hasn't seriously been in the low margin embedded chip business in decades... I don't see this as them getting into low margin chips. This is them sell

by elihu 6y ago

> Intel hasn't seriously been in the low margin embedded chip business in decades... I don't see this as them getting into low margin chips. This is them selling manufacturing capacity to someone who wants what in ordinary times might be low margin chips. And some of them might not actually be all that low margin; I assume modern cars have one or two computers that are more like smart phones than Arduinos.

blihp 6y ago
Try talking to an American automotive supplier some time... it's generally a lousy business to be in. Fortunately for Intel, it's likely to only represent a tiny sliver of their business and the American autos are pretty desperate right now having emptied a few rounds into their own feet.
- deleted 6y ago
  [deleted]
gumby 6y ago
Have you ever worked in the embedded space? The technical work is often fun while the business side is miserable. I worked with Toyota when they were literally trying to shave a ¥100 from the engine control unit of a new vehicle. A new design! Once they entered production they were going to shave the cost even more on the backs of their suppliers. There's a reason why Intel got out of this business. Ever wonder why AMD can use x86? They got that license back when nobody would design in your part unless there was a second supplier of the identical part. So they got a license so that Intel could sell parts. Intel abandoned that world without a backwards glance.
- reducesuffering 6y ago
  > "literally trying to shave a ¥100 from the engine control unit of a new vehicle. A new design! Once they entered production they were going to shave the cost even more on the backs of their suppliers." Nothing like the possibilities of massive economies of scale. There's a reason Toyotas are such good values.
  - KirillPanov 6y ago
    Wut? Toyotas are not "good value" because they're cheap -- just look at the prices for new Toyota Tacomas! They're a good value because of the exceptional engineering, and they sell at a premium because of it. People need to stop drinking this stupid "scale is all that matters" kool-aid.
- KirillPanov 6y ago
  > Ever wonder why AMD can use x86? AMD can use x86_64 because they invented it.
  - belval 6y ago
    He said x86, not x86_64 (AMD64). Intel most definitely invented x86 since the x86 is itself a reference to the Intel 8086.
- HeyLaughingBoy 6y ago
  > Have you ever worked in the embedded space? The technical work is often fun while the business side is miserable. This is such a perfect description, it make me want to cry.

by elihu 6y ago

blihp 6y ago

Try talking to an American automotive supplier some time... it's generally a lousy business to be in. Fortunately for Intel, it's likely to only represent a tiny sliver of their business and the American autos are pretty desperate right now having emptied a few rounds into their own feet.

deleted 6y ago
[deleted]

gumby 6y ago

Have you ever worked in the embedded space? The technical work is often fun while the business side is miserable. I worked with Toyota when they were literally trying to shave a ¥100 from the engine control unit of a new vehicle. A new design! Once they entered production they were going to shave the cost even more on the backs of their suppliers. There's a reason why Intel got out of this business. Ever wonder why AMD can use x86? They got that license back when nobody would design in your part unless there was a second supplier of the identical part. So they got a license so that Intel could sell parts. Intel abandoned that world without a backwards glance.

reducesuffering 6y ago
> "literally trying to shave a ¥100 from the engine control unit of a new vehicle. A new design! Once they entered production they were going to shave the cost even more on the backs of their suppliers." Nothing like the possibilities of massive economies of scale. There's a reason Toyotas are such good values.
- KirillPanov 6y ago
  Wut? Toyotas are not "good value" because they're cheap -- just look at the prices for new Toyota Tacomas! They're a good value because of the exceptional engineering, and they sell at a premium because of it. People need to stop drinking this stupid "scale is all that matters" kool-aid.
KirillPanov 6y ago
> Ever wonder why AMD can use x86? AMD can use x86_64 because they invented it.
- belval 6y ago
  He said x86, not x86_64 (AMD64). Intel most definitely invented x86 since the x86 is itself a reference to the Intel 8086.
HeyLaughingBoy 6y ago
> Have you ever worked in the embedded space? The technical work is often fun while the business side is miserable. This is such a perfect description, it make me want to cry.