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Exactly. Ctrl-F “EUV” in the article and notice nothing comes up. Intel made a couple very bad engineering decisions and fell behind on process technology. Tha

Exactly. Ctrl-F “EUV” in the article and notice nothing comes up. Intel made a couple very bad engineering decisions and fell behind on process technology. That’s it. Share repurchases have nothing to do with it.

elihu 5y ago
You don't think that Intel spending substantially more on stock buybacks and dividends than TSMC and Samsung over the last twenty years had any notable impact on their competitiveness? To me, the article seems spot-on.
- onepointsixC 5y ago
  Then why is Apple doing so well with its M1 chips with more than 10X the buy backs of Intel?
  - elihu 5y ago
    It's a different kind of business. Apple doesn't fab the chips, that's done by TSMC.
- xadhominemx 5y ago
  No, not really. Intel’s R&D spending dwarfed TSMC’s. Their execution was poor.
lwkl 5y ago
A good point the article made is that Intel now wants subsidies to finance their R&D. Which is basically the government subsidizing the stock buybacks. I think in a situation like that the subsidies should come in form of the government buying bonds from the company or Intel offering a stake in the company so the government can profit from their investment in the future. Otherwise it's just redistributing money to capital owners, which is stupid and gives an incentive to make bad business decisions.
- onepointsixC 5y ago
  They are asking for them, but it's important to contextualize that the entire chip industry is receiving boat loads of cash abroad. Case and point South Korea has announced $451Bn in chip subsidies [1]. Which dwarfs the measly $52bn American Chips Act subsidies [2]. America could sit it out and risk South Korea killing American fabs like it killed American Commercial Shipyards in the 80's or it can respond with subsidies of its own. [1]: https://asia.nikkei.com/Business/Tech/Semiconductors/South-Korea-plans-to-invest-450bn-to-become-chip-powerhouse https://asia.nikkei.com/Business/Tech/Semiconductors/South-K... [2]: https://www.semiconductors.org/chips/ https://www.semiconductors.org/chips/
  - deleted 5y ago
    [deleted]

elihu 5y ago

You don't think that Intel spending substantially more on stock buybacks and dividends than TSMC and Samsung over the last twenty years had any notable impact on their competitiveness? To me, the article seems spot-on.

onepointsixC 5y ago
Then why is Apple doing so well with its M1 chips with more than 10X the buy backs of Intel?
- elihu 5y ago
  It's a different kind of business. Apple doesn't fab the chips, that's done by TSMC.
xadhominemx 5y ago
No, not really. Intel’s R&D spending dwarfed TSMC’s. Their execution was poor.

lwkl 5y ago

A good point the article made is that Intel now wants subsidies to finance their R&D. Which is basically the government subsidizing the stock buybacks. I think in a situation like that the subsidies should come in form of the government buying bonds from the company or Intel offering a stake in the company so the government can profit from their investment in the future. Otherwise it's just redistributing money to capital owners, which is stupid and gives an incentive to make bad business decisions.

onepointsixC 5y ago
They are asking for them, but it's important to contextualize that the entire chip industry is receiving boat loads of cash abroad. Case and point South Korea has announced $451Bn in chip subsidies [1]. Which dwarfs the measly $52bn American Chips Act subsidies [2]. America could sit it out and risk South Korea killing American fabs like it killed American Commercial Shipyards in the 80's or it can respond with subsidies of its own. [1]: https://asia.nikkei.com/Business/Tech/Semiconductors/South-Korea-plans-to-invest-450bn-to-become-chip-powerhouse https://asia.nikkei.com/Business/Tech/Semiconductors/South-K... [2]: https://www.semiconductors.org/chips/ https://www.semiconductors.org/chips/
- deleted 5y ago
  [deleted]