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Apple's Johny Srouji likely on Intel's new CEO short list

1 points by ksec 2y ago

ksec 2y ago
I thought about Apple buying Intel but that was impossible from an asset light perspective. But now this raise an interesting question. Could Apple control Intel enough to its own advantage? Effectively making Apple as Intel Foundry's largest customer. While Apple getting a seats on its board. Apple currently ship ~330M devices per year. That is 330M SoC, WiFi Bluetooth and 280M Modem, or roughly 1B chip per year. They also order a lot of CPU for their Datacenter. Apple also have the most important card that is cash. Apple has more cash than they know what to do with it. And giving Intel access of cheap ( not free ) access of capital would help them with their foundry ambitious which is capital intensive. It also help US to build its foundry and technology capability in house. This is a big bet but could potentially play out the same way as TSMC over taking Intel as leading Edge. Without Apple TSMC will need to find customer who is willing to pay up front on Capital intensive leading node R&D. And without Apple Qualcomm, Nvidia, Mediatek would have to pay for that. Ultimately leading to more expensive SoC for Android, which happens to be a market without a lot of room for margin. But Tim Cook isn't the type of person to place huge bet. And that is on the assumption Johny could fix Intel. Unless the shareholder vote in majority to allow certain flavours to Apple such as buying a large percentage of shares along with many board seats. I know not sure the stupidity of Wall Street is willing to entertain the idea since they only want Intel for its dividends.
aurareturn 2y ago
Why would Johny Srouji go to Intel? It doesn't make much sense. Intel would have to pay him a ton of cash because the chance of Intel's stock options increasing is quite low. This is at a time when Intel is low on cash. Johny has a cushy job at Apple and Apple Silicon is just getting started. Apple needs to start building chips for AI and that seems like a job that will continue to be very interesting for Srouji. At Intel, he's just going to have to go through the pain of cutting tens of thousands of jobs, potentially splitting Intel, and selling Intel's non-primary assets such as MobileEye. That doesn't seem like a job that is great. For Intel, it could make sense because that significantly increases the chance of Intel bringing Apple on as a fab customer.
- oldpersonintx 2y ago
  [dead]
gnabgib 2y ago
Original source: https://www.bloomberg.com/news/newsletters/2024-12-08/apple-sony-talk-playstation-vr-ps-vr2-hand-controller-support-for-vision-pro https://www.bloomberg.com/news/newsletters/2024-12-08/apple-... .. which granted has a non-obvious title, and the scoop is about 60% of the way through Apple’s Johny Srouji will likely be on Intel’s short list for a new CEO https://news.ycombinator.com/item?id=42367248 https://news.ycombinator.com/item?id=42367248

1 points by ksec 2y ago

ksec 2y ago

I thought about Apple buying Intel but that was impossible from an asset light perspective. But now this raise an interesting question. Could Apple control Intel enough to its own advantage? Effectively making Apple as Intel Foundry's largest customer. While Apple getting a seats on its board. Apple currently ship ~330M devices per year. That is 330M SoC, WiFi Bluetooth and 280M Modem, or roughly 1B chip per year. They also order a lot of CPU for their Datacenter. Apple also have the most important card that is cash. Apple has more cash than they know what to do with it. And giving Intel access of cheap ( not free ) access of capital would help them with their foundry ambitious which is capital intensive. It also help US to build its foundry and technology capability in house. This is a big bet but could potentially play out the same way as TSMC over taking Intel as leading Edge. Without Apple TSMC will need to find customer who is willing to pay up front on Capital intensive leading node R&D. And without Apple Qualcomm, Nvidia, Mediatek would have to pay for that. Ultimately leading to more expensive SoC for Android, which happens to be a market without a lot of room for margin. But Tim Cook isn't the type of person to place huge bet. And that is on the assumption Johny could fix Intel. Unless the shareholder vote in majority to allow certain flavours to Apple such as buying a large percentage of shares along with many board seats. I know not sure the stupidity of Wall Street is willing to entertain the idea since they only want Intel for its dividends.

aurareturn 2y ago

Why would Johny Srouji go to Intel? It doesn't make much sense. Intel would have to pay him a ton of cash because the chance of Intel's stock options increasing is quite low. This is at a time when Intel is low on cash. Johny has a cushy job at Apple and Apple Silicon is just getting started. Apple needs to start building chips for AI and that seems like a job that will continue to be very interesting for Srouji. At Intel, he's just going to have to go through the pain of cutting tens of thousands of jobs, potentially splitting Intel, and selling Intel's non-primary assets such as MobileEye. That doesn't seem like a job that is great. For Intel, it could make sense because that significantly increases the chance of Intel bringing Apple on as a fab customer.

oldpersonintx 2y ago
[dead]

gnabgib 2y ago

Original source: https://www.bloomberg.com/news/newsletters/2024-12-08/apple-sony-talk-playstation-vr-ps-vr2-hand-controller-support-for-vision-pro https://www.bloomberg.com/news/newsletters/2024-12-08/apple-... .. which granted has a non-obvious title, and the scoop is about 60% of the way through Apple’s Johny Srouji will likely be on Intel’s short list for a new CEO https://news.ycombinator.com/item?id=42367248 https://news.ycombinator.com/item?id=42367248