Intel is in big trouble (financially) yet again ....... Intel is cutting 11% of their personnel and are cutting their new project stuff left and right to get some cash flow moving again. Pat Gelsinger is TRYING to get Intel's spending in line with his much lower income for this year, but he is WAY OVERCOMMITTED by his Biden promises from this past year.
https://www.tomshardware.com/news/intel-sunsets-network-switch-biz-kills-risc...In an attempt to trim their own overblown spending, Intel has abruptly abandoned most of their main program initiatives from last year and have curtailed all Intel dollar spending on their long list of "planned new fabs" that were actually had their land cleared and were partially started. These are survival type decisions that reflect the severe financial constraints that Intel is under.
The Republicans have cut off most of the future spending on Biden's promised 84 Billion $$$$ in "bring the tech back home" bailout bucks, so apart from further illegal Democrat spending that stuff is all done now.
Intel has only placed orders on a very few graphics processors to run off TSMC's most modern second generation 3nm processor lines. Intel may have an ASML scanner order in progress to build a few Intel 3nm lines of their very own, but this is very unclear at this time if this was just some Intel PR smoke or something more tangible.
Intel sales of existing Intel 10nm and 7nm processors are strongly tanking right now, leaving Intel to cut prices and profitability to simply move their overstocks of existing already built processors.
Both AMD and Intel are seeing a very slow moving sales of new finished processors, movement only takes place when a new "temporary" major price cut is announced.AMD right now is simply holding on to their raw chiplet allocations as raw chiplets and are
only assembling the finished processors that they actually have firm orders for. This allows AMD to minimize their working inventory and improve their fiscal results accordingly.
Intel meanwhile still has to build out their entire finished Intel CPU processor, and then Intel must warehouse these very expensive jewels until they can move them on somehow.
Intel is still building out a brand new entire line of new processors and offering them to Intel's contractually bound box makers. Intel's scrap rates are far higher than AMD/TSMC's rates, and this affects profitability.
Intel is losing money hand over fist due to their marketing plan not keeping track or being in line with the current realities in the embargoed Chinese computer market. Intel is still making chips for the Chinese market, chips they are no longer allowed to ship directly to China. Intel ships them to certain Indochinese companies (ones not currently under embargo) who then send them on to China on the sly. This will be stopped shortly.
https://www.youtube.com/watch?v=uLP02jAJq3w&ab_channel=Moore%27sLawIsDeadNews for 1/31/23Intel just lost another 11-13% of their stock value as yesterdays news hit on Wall Street. AMD stock value also went down as stock holders have been made antsy by Intel failing so hard and so repeatedly in the last 60 days. Because AMD lacks the massive set of issues that Intel is blessed with, AMD's stock price will cycle back up relatively faster.
(as of 2/1/23 AMD had already bounced back from their hit while Intel stayed under water)Here is a financial analysis of Intel's true market share and fiscal position.
https://seekingalpha.com/article/4573781-intel-q4-earnings-delusion-and-intervention
Yes, AMD is choosing to not supply all that they could supply as they are 1) keeping their unit sales price up and 2) maintaining a steady large stockpile of their chiplets prior to assembly (maintaining AMD's contractual inventory as a backup inventory of unassembled chiplets which is a smart thing to do in a very uncertain environment).
Chiplets are far less costly to inventory than finished unsold processors --- this move makes AMD's financials better just by doing this simple trick.2/3/23 INTEL'S BOARD OF DIRECTORS JUST CUT THEIR CEO PAT GELSINGER'S BASE SALARY BY 25% ALONG WITH MANY OTHER UPPER EXECUTIVES PAY RATES. These were performance based incentives that turned out were never earned in hard reality.