Stratechery Intel Problems
Jan 19, 2021
This discussion dives into Intel's ongoing market challenges and the urgent need for strategic transformation. It highlights Intel's past successes and current struggles, particularly in mobile technology, while facing stiff competition from TSMC and AMD. The impact of geopolitical factors on semiconductor manufacturing is examined, along with possible solutions like operational separation and government support to re-establish competitiveness. A thorough analysis reveals the complexities of navigating a rapidly evolving tech landscape.
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Mobile Misstep
- Intel's struggles in mobile are deeper than lost profits.
- The increasing cost of processors requires higher revenue, which mobile provided to competitors but not Intel.
Server Success
- Intel disrupted the server space with x86 processors, benefiting from Google's need for scalable, failure-tolerant systems.
- Their superior manufacturing and design solidified Intel's dominance in servers.
Missed Transformation
- Unlike Microsoft, Intel avoided being completely shut out of servers, delaying needed change.
- Microsoft’s growth came from embracing the cloud and Linux, something Intel needs to learn from.