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Intel Corporation Message Board

  • semiwiki semiwiki Apr 27, 2013 10:18 AM Flag

    Should Intel Change Strategies?

    Article from Motley Fool that I actually agree with:

    "Although Intel earns a higher gross profit margin than TSMC, by the time it reaches the bottom line, Intel is about 42% less profitable than TSMC. Clearly, designing and manufacturing chips doesn't come cheap. As a result, the market has given TSMC a valuation more or less in line with the S&P 500 and has discounted Intel by about 35%. As investments, TSMC and Intel differ greatly in scope."

    The fabless semiconductor ecosystem exists for a reason, the traditional semiconductor companies moved too slow and did NOT innovate, simple as that. If you think that is going to change, if you bet against the fabless semiconductor ecosystem (TSMC, ARM, QCO, etc....) you will lose.

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    • semiwiki agrees with motley fool, enough said...BTW Nenni, I heard you are the butt of the joke around here.

    • Is that why Intel is 4 years ahead of everyone else? Because they do not innovate? Motley fool is funny as they are BS.

    • Well then, soon enough everyone will be fabless. Who will be left with the fab? Intel.

    • I thought the fabless ecosystem existed because the cost of the "next fab" became too expensive for them to individually afford. The "too slow and did NOT innovate" was as simple as their "tiny wallet" wasn't it?

      • 2 Replies to alexander.dumbass
      • "Well then, soon enough everyone will be fabless. Who will be left with the fab? Intel."

        Don't forget Samsung. They are the real threat for Intel. Maybe Wallis can do one of his famous comparisons like he did with Intel versus ARM. Even though ARM is an IP company and Intel is a semiconductor company.

      • No, innovative people got tired of working for old school semiconductor companies and spun out on their own. Xilinx was the first. From the article: A Brief History of Field Programmable Devices (FPGAs)

        "It is a familiar Silicon Valley story, Xilinx co-founder Ross Freeman wanted to create a blank semiconductor device that could be quickly programmed based on an application’s requirements. Even back then semiconductors cost millions of dollars to design and manufacture so this was not only a cost savings, FPGAs also dramatically reduced time to market for electronic products. Fortunately for us, Ross’s employer Zilog did not share this vision and Xilinx was created in 1984."

        "To minimize start-up costs and risk, the Xilinx founders decided to leverage personal relationships with Japan based Seiko Epson Semiconductor Division. Seiko started manufacturing the first FPGAs for Xilinx in 1985 using a very mature 1.2m process. The first Xilinx FPGA was a 1,000 ASIC gate equivalent running at 18MHZ. Xilinx also pioneered second sourcing for the fabless semiconductor market segments using multiple IDMs for manufacturing to keep costs and risks in check. One of the more notable second sources was AMD who’s CEO at that time, Jerry Sanders, made the infamous statement “Real men have fabs!” AMD is now fabless of course."

    • So you are saying to go Long or stay Long at ARMH 45 and QCOM 62. Let's see how your recommendation plays out.

 
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