12-31-2020, 08:32 AM
https://www.extremetech.com/computing/31...-own-chips
Quote:Some of Third Point’s… points are hard to disagree with. It’s true that Intel has struggled to execute in recent years. It’s been long enough, frankly, that “recent years” doesn’t really capture the scope of the problem. Intel’s 14nm was the first node to be delayed due to manufacturing issues, which means you can argue that the company has been struggling with node transitions for the past six years. That’s not trivial.
But there are a few specific reasons to think Third Point is stirring the pot. First, Intel has already stated that it’s considering tapping third parties for cutting-edge CPU production. The company is going to have to talk about these issues in its investor presentations in 2021 — there’s no way to avoid it.
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Second, it’s not clear that splitting Intel’s foundries from the design aspect of the company makes sense for either. Intel’s manufacturing rules are specifically designed for Intel microprocessors. Intel does not always use the same design rules for a given node that TSMC did, and it emphasizes high-performance silicon rather than ultra-low-power chips. The company had trouble finding customers for its client foundry business because Intel’s design rules are restrictive.
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Intel’s biggest problem is that confidence in its manufacturing prowess has waned to the point that conversations like this are happening at all. Semiconductors require long investment cycles that pair poorly with the quarterly focus of the market. Before it delayed its 7nm node, Intel had announced it would regain process leadership with its own 5nm node in 2023. Presumably, the best-case date for that now is 2024. If 5nm were to shift outwards again, Intel might need until a hypothetical 3nm to regain superiority, with an extremely theoretical launch date of somewhere between 2026 and 2028.
All of these facts are already weighing on Intel based on comments made by Bob Swan when he announced the 7nm delay. The case Third Point makes for a spinoff isn’t as cut and dry as the company would like to make it sound, but whatever decision Intel makes on these issues will have a profound impact on the company in years to come, for good or ill. We’ll almost certainly hear more about these issues during the company’s quarterly conference call in January 2021.