intel Intel discusses Exit From Manufacturing Chips - Stock prices drop 20%

[tagKnife]

Summary

Intel Corp. Chief Executive Officer Bob Swan spent almost an hour on Thursday discussing an idea that would once have been unthinkable for the world’s largest semiconductor company: Not manufacturing its own chips. Intel’s shares tumbled as much as 18% Friday morning.Outsourcing is the norm in the $400 billion industry nowadays, but for 50 years Intel has combined chip design with in-house production. And until recently, Intel was even planning to churn out processors for others.

 

Quotes

Quote

"To the extent that we need to use somebody else’s process technology and we call those contingency plans, we will be prepared to do that,That gives us much more optionality and flexibility. So in the event there is a process slip, we can try something rather than make it all ourselves." Swan told investors

 

Sources

https://finance.yahoo.com/news/intel-considers-once-heresy-not-013625863.html

[Kisai]

1 minute ago, tagKnife said:

Summary

Intel Corp. Chief Executive Officer Bob Swan spent almost an hour on Thursday discussing an idea that would once have been unthinkable for the world’s largest semiconductor company: Not manufacturing its own chips. Intel’s shares tumbled as much as 18% Friday morning.Outsourcing is the norm in the $400 billion industry nowadays, but for 50 years Intel has combined chip design with in-house production. And until recently, Intel was even planning to churn out processors for others.

 

Quotes

 

Sources

https://finance.yahoo.com/news/intel-considers-once-heresy-not-013625863.html

It's almost as if AMD was right about something.

 

But I don't see them exiting all chip manufacturing, just ones that they may have competitive issues in such as CPU's.

[themaniac]

If they went through with this, then this would have to be their biggest mistake in their entire lifetime imo

[FakeNSA]

A surprise, to be sure, and not a welcome one.
But seriously, this could change the game forever, even if they only stop their manufacturing of high-end CPU silicon.

I wonder if this means they are cancelling their Scottsdale (Phoenix, AZ) fab plans?

[porina]

To my understanding Intel's comments were about adding external capacity on top of their own capability, not to replace their own with it. A very big difference there. 

[FakeNSA]

3 minutes ago, porina said:

To my understanding Intel's comments were about adding external capacity on top of their own capability, not to replace their own with it. A very big difference there. 

Good to know, thanks.

I wonder what their five year plan would look like in this case.

[TVwazhere]

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