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Vertical integration is great if it generates synergies. It’s really bad if the tie into the internal customer hinders the development of each part of the busin

Vertical integration is great if it generates synergies. It’s really bad if the tie into the internal customer hinders the development of each part of the business. Intel is not remotely robust as it’s almost completely dependent on x86 and needs to catch up with TSMC. It lost smartphones in part because of x86. Now it’s fallen behind AMD because of manufacturing weaknesses. Hence a P/E ratio of 9 vs c20 for TSMC. TSMC on the other hand has a huge variety of customers at a wide variety of nodes.

LegitShady 5y ago
Intel never had smartphones to lose. Inetl can generate all the same advantages as amd by simply buying Chips from TSMC if they want (and they already do for some chipsets) so there is no operational disadvantage. Intel is already mostly caught up to amd and will be making significantly more per chip than amd very soon. TSMC is competing for something Intel doesn't want to sell. Intel even when it was in the lead wasn't tabbing it's newest process for 3rd parties. You're declaring TSMC Victor in a game Intel never played. And in a handful of years if Intel gains back process advantages you will likely still declare them the loser for not playing the cutting edge fab for other companies game they don't want to play. TSMC is not playing the same game Intel is, and in 2021 when by all accounts Intel was behind TSMC and and, they still managed to make similar profit to TSMC and laugh at AMD's inability to buy enough chips to make anything close to competition for either Intel or Nvidia. Now they're also getting into graphics cards and have largely caught uP with amd designs. Their future is bright.
- posguy 5y ago
  The Intel graphics offerings have consistently under-preformed the rest of the industry, ending up at low end to midrange GPU: https://wccftech.com/intel-arc-alchemist-a770-gaming-desktop-graphics-card-pugetbench-geekbench-benchmark-leak/ https://wccftech.com/intel-arc-alchemist-a770-gaming-desktop... Intel has consistently tried to build a top tier GPU and failed year after year. Expecting them to suddenly break away from their history is extremely optimistic.
  - LegitShady 5y ago
    They're just starting to get into the business. It will improve. They don't have to have the best cards, they just have to compete in some segments from the start. It's all upwards from here. That's the thing about experience - you keep accumulating it.

LegitShady 5y ago

Intel never had smartphones to lose. Inetl can generate all the same advantages as amd by simply buying Chips from TSMC if they want (and they already do for some chipsets) so there is no operational disadvantage. Intel is already mostly caught up to amd and will be making significantly more per chip than amd very soon. TSMC is competing for something Intel doesn't want to sell. Intel even when it was in the lead wasn't tabbing it's newest process for 3rd parties. You're declaring TSMC Victor in a game Intel never played. And in a handful of years if Intel gains back process advantages you will likely still declare them the loser for not playing the cutting edge fab for other companies game they don't want to play. TSMC is not playing the same game Intel is, and in 2021 when by all accounts Intel was behind TSMC and and, they still managed to make similar profit to TSMC and laugh at AMD's inability to buy enough chips to make anything close to competition for either Intel or Nvidia. Now they're also getting into graphics cards and have largely caught uP with amd designs. Their future is bright.

posguy 5y ago
The Intel graphics offerings have consistently under-preformed the rest of the industry, ending up at low end to midrange GPU: https://wccftech.com/intel-arc-alchemist-a770-gaming-desktop-graphics-card-pugetbench-geekbench-benchmark-leak/ https://wccftech.com/intel-arc-alchemist-a770-gaming-desktop... Intel has consistently tried to build a top tier GPU and failed year after year. Expecting them to suddenly break away from their history is extremely optimistic.
- LegitShady 5y ago
  They're just starting to get into the business. It will improve. They don't have to have the best cards, they just have to compete in some segments from the start. It's all upwards from here. That's the thing about experience - you keep accumulating it.