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by coded
2155 days ago
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The “stunning failure” and “end of era” are good clickbait phrases for a headline, but it’s made by an analyst. Gotta consider the source. It’s definitely not surprising to see the competition close in on Intel, but it’s also not the end of an era. |
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TSMC's 7nm process is mature and superior to anything that Intel can currently produce in volume, and their 5nm process has nearly double the transistor density of 7nm (and over 4x the density of Intel's mature 14nm process). Samsung isn't far behind.
That Intel's CEO is telling investors that they may be manufacturing cutting edge products elsewhere is a clear signal that they're getting ready to pivot. This is on top of the earlier steps that Intel took to make their processor architectures more portable between manufacturing processes.
Semiconductor manufacturing, especially at the leading edge, requires massive economies of scale to be sustainable. While Intel didn't explicitly say they were bowing out, the steps that Intel's leadership is taking clearly point to them recognizing that they have no viable path forward as a leading-edge manufacturer.
Within the next 3 years, barring a government bailout, or TSMC/Samsung's 5nm processes failing in a similar fashion (which at least for TSMC, seems unlikely), I expect Intel to spin off its manufacturing business into a separate company and go fabless.