"Intel Corp?s plan to outsource manufacturing is the end of an era in US tech When most other US chip companies shut or sold domestic plants years ago, I ntel held out, a strategy that is now in tatters, with the company? s factories struggling to keep up."
CEO Bob Swan made the stunning announcement on Friday, during an earnings call. It sent Intel down 16%, AMD up 16%. Bottom line, Intel first screwe d
10nm, they are only now recovering and catching up on that. Meanwhile Swan announced that 7nm is all screwed up, yields are terrible, it has slipped another 6 months on top of at least six months earlier. Intel won't be in production until 2022/23. MEanwhile AMC is producing 7nm via TSMC right now. By the time Intel is on 7nm, TSMC will be on 3 nm. In short, Intel has gone from being a node ahead to a node behind. And Swan says the answer is Intel is considering outsourcing production to other companies!I remember discussing this here a couple years ago, warning that this is what happens when you let accountants take over high tech companies. I remember the usual suspects here arguing it was no big deal, it's just "managing". Well, the idiot bean counter from Ebay that somehow would up running Intel sure has screwed this up really badly. It's unlikely Intel will ever recover. And it validates AMD being apparently right and early to get out of fabs years ago and Apple choosing to ditch Intel. It's a sad day for the future of high tech in America.