Thursday, January 21, 2021 [Tweets] [Favorites]

Intel Problems

Ben Thompson:

In fact, the x86 business proved far too profitable to take such a radical step, which is the exact sort of “problem” that leads to disruption: yes, Intel avoided Microsoft’s fate, but that also means that the company never felt the financial pain necessary to make such a dramatic transformation of its business at a time when it might have made a difference (and, to be fair, Andy Grove needed the memory crash of 1984 to get the company to fully focus on processors in the first place).

[…]

This is why Intel needs to be split in two. Yes, integrating design and manufacturing was the foundation of Intel’s moat for decades, but that integration has become a strait-jacket for both sides of the business. Intel’s designs are held back by the company’s struggles in manufacturing, while its manufacturing has an incentive problem.

Ian Cutress (Hacker News):

We’re following the state of play with Intel’s new CEO, Pat Gelsinger, very closely. Even as an Intel employee for 30 years, rising to the rank of CTO, then taking 12 years away from the company, his arrival has been met with praise across the spectrum given his background and previous successes. He isn’t even set to take his new role until February 15th, however his return is already causing a stir with Intel’s current R&D teams.

News in the last 24 hours, based on public statements, states that former Intel Senior Fellow Glenn Hinton, who lists being the lead architect of Intel’s Nehalem CPU core in his list of achievements, is coming out of retirement to re-join the company. (The other lead architect of Nehalem are Ronak Singhal and Per Hammerlund - Ronak is still at Intel, working on next-gen processors, while Per has been at Apple for five years.)

See also: Nvidia’s Integration Dreams.

Previously:

Update (2021-01-22): John Gruber:

Gelsinger, speaking in early 2021, knows that Intel fell behind years ago — in an industry where it’s notoriously hard to catch up. He’s taking over a ship that already hit an iceberg and is in need of saving. Sometimes you talk trash about your opponent because you’re an idiot. But other times, you talk a little trash to fire up your own team.

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