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IMHO this is just Intel hiding rather than solving its problems. It gives the appearance of management doing something but it's the wrong thing. If we've learn
by cletus 5y ago
IMHO this is just Intel hiding rather than solving its problems. It gives the appearance of management doing something but it's the wrong thing.
If we've learned nothing else, the big winners are at the cutting edge and vertically integrated. Splitting design and fab seems like a good idea: force fab to compete for design business. But middle management will take over and create perverse incentives where neither fab nor design radically improves.
I've heard tales of Intel being rife with politics, fiefdoms and empire-building. This is classic middle management run amok in the absence of real leadership. I honestly think the best thing Intel could do is fire everyone above the director level and start over.
Intel dominated when their fab was cutting edge and no one else had access to it. Splitting this means if their fab improves then everyone has access to it.
There's clearly an organizational problem here but this split isn't going to solve it.
- threatripper 5y agoIMHO it's the same pattern of the time when Intel gave up on their memory business and entered the CPU business. Citing from memory: "If you were the new CEO what would you do to save the company?" - and he immediately knew the answer - "Then let's go back in the boardroom and do that." Judging from that it seems like their fab business doesn't have any long term future, the outside world just doesn't know it yet. Now they put on a show until they are ready to fully convert to other fabs. After all, the current fabs are still cranking out chips that make them billions each month.
- JumpCrisscross 5y ago> their fab business doesn't have any long term future It has a fine future, just not in a 60%+ margin business. Intel should bite the bullet and spin out its fabs. Let it compete and grow as a separate company from Intel’s design units. Stratchery is spot on, as he’s been about Intel from day one.
- notswiley2 5y agoIsn't this kind of thing part of what killed the PalmPilot?