Odd Lots Lots More on the Ongoing Mess That Is Intel
Oct 4, 2024
Stacy Rasgon, a semiconductor analyst at Bernstein Research, and Mackenzie Hawkins, a Bloomberg News reporter, dive into Intel's pressing challenges as it navigates a competitive landscape. They discuss Intel's struggles with its fab operations amidst the U.S. push for domestic semiconductor manufacturing. The conversation highlights the impact of government subsidies, missed opportunities in AI, and the critical role of leadership in shaping Intel’s future. Additionally, they explore Intel's ambitious vision for 2030 and the complexities of restoring its market position.
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Intel's Struggles
- Intel's core business is deteriorating, making it hard to support its manufacturing expansion.
- This deterioration is due to several factors, including macro trends, market share loss, and missing the AI revolution.
Intel and the CHIPS Act
- Intel is the largest beneficiary of the CHIPS Act and its success is crucial for the Biden administration.
- The company's awards are tied to milestones, but its technology isn't fully proven yet.
Government Aid and Intel
- Government aid helps Intel's cash flow, but grants are milestone-based and require successful projects.
- While Intel is important for US semiconductor efforts, choosing them as the sole champion might not be the most effective strategy.