Earlier quoted context omitted.
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It really doesn't matter - show me a DEI scheme that has actually had success and didn't revert to saying "it's the funnel"
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Intel to Receive $8.5B in Grants to Build Chip Plants
181–190 of 657 posts
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#182We're living through the silicon age and Intel has made a total dog's breakfast of it. Stagnant revenues, falling profits. Both should have been growing geometrically. Just compare these companies: https://valustox.com/INTC https://valustox.com/AMD https://valustox.com/AVGO https://valustox.com/AMAT Even Qualcomm has seen good growth: https://valustox.com/QCOM This is how it's done: https://valustox.com/NVDA EDIT the…
How do you come off with a straight face attempting to compare a bunch of fabless design houses with a company that actually owns the infrastructure and processes to make tangible products, even if not the prevailing sexiest thing? You're living in a bubble if you think the biggest money printer in the world actually cares about the historical performance of your cherry-picked stock comparisons.
Not 100% sure what you mean or why you're so antagonistic. Who's the money printer in your comment?
Why are my stock comparisons cherry-picked? The companies I listed make money from chips. Besides - any investor can compare any two companies for market cap, revenue, and profit, even if one makes chips and the other sells sugary drinks.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#183Right now one of the biggest blockers in on-shoring semiconductor fab at any kind of reasonable price-point and timescale is the lack of a skilled workforce. This legislation has dual objectives: train new people to get into sophisticated manufacturing AND to build out the actual infrastructure itself. That almost guarantees it won't be the most efficient way to actually get these chips on American soil. Whether we l…
> Whether we look back in 20 years and think "wow glad we took that hit upfront" is anyone's guess Globalization is breaking down quickly. Chips are crucial to national security and our economy. The supply chain for advanced chips is heavily dependent on East Asia which is a geopolitical powder keg and a demographic time bomb. The only thing more expensive than whatever we end up with is chips unavailable at any pric…
>Globalization is breaking down quickly
Is it? I don't know if there's a concrete way of measuring "amount of globalization", but I'd guess that right now we're probably the most globalized we've ever been. "More things that you use are made outside your own country" has only been growing, and with the advent of full remote companies that also includes much more software than before -- it used to be that only huge corporations would offshore software development, now everybody can do it.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#184Earlier quoted context omitted.
No shock that profits are failing when they are investing heavily
I'm not an accountant but they should be able to capitalize expenses incurred when it's an investment, ie, since it's not really a normal expense profit should not be affected. I'm not sure how that works with R&D engineering salaries - that might impact their profits even if it's an investment. I feel like a large technology company should spend a large but consistent amount of money on R&D - I don't like wild swing…
Also not an accountant, but i believe you two are talking differently about gaap and nongaap profit. The latter can immediately write of R&D, where as GAAP has rules around deprecation of investments.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#185I think actually the problem with this program is not the recipient (I mean, Intel is literally the only American company building fabs in the US) but the structure. The problem with US fans is that the skilled Taiwanese workforce is simply willing to work for less and more flexibly. We could easily solve that problem if we were willing to do what China is doing, which is paying Taiwanese PhDs, engineers, and technic…
> Taiwanese PhDs, engineers, and technicians to come to the US
Isn't this already present in H1B and other Skilled / extraordinary persons programs?
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#186> The Biden administration, equipped with $39 billion in subsidies to distribute,
IMO this is the major problem in American politics (maybe world too)- That we have the government picking and choosing winners before the game is even played.
IMO we should be rewarding the winners in a after a fair game with rules tailored to what we want to incentivize. Eg: A per chip, per TFLOP or other intelligent metric reward AFTER the item is produced and sold on the free market. IMO The government should not be financing or changing the capital structure of any corporation, instead investors should take the risk and use financial structures available to chase the rewards.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#187Earlier quoted context omitted.
Well, you can chase short term profit and send your designs off to TSMC, or you can own your own foundry. This is exactly why it's in the interest of the US government to ensure that Intel doesn't totally abandon US manufacturing just like AMD did years ago.
Not saying INTC isn't valuable - just saying they seem to have missed the boat in a big way and changes are in order. The US does of course need on-shore chip foundries for strategic reasons.
It was not obvious to Intel leadership that the future of manufacturing was to become a contracted fabricator of the design of other companies. Vertical integration and total control over both design and manufacture of chips was the obvious (and, until recently) successful path. What board would keep an Intel CEO that presented the idea of shifting the primary focus of the company to manufacturing the designs of other companies whose products are in direct competition to Intel?
Intel is a perfect example of why companies need to regularly kill their old selves in order to survive. But it's also a perfect example of why so many companies fail to do so, since it often involves making what appears to be a terrible decision at the time, and convincing a bunch of people who know better to back you up. Very few leaders have the clout to pull this off.
The success of TSCM was the result of an interesting confluence of events: including the existence of ARM; Apple deciding that they were going to design their own hardware and outsource its manufacture; Nvidia developing CUDA; and the machine learning/AI revolution that drove demand for Nvidia cards.
If you take away any of those pieces, I think TSCM doesn't become the powerhouse it is today.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#188WRT to lack of a skilled workforce, here is an interesting anecdote. I remember back in the late 90's, Intel had to fire most line workers in their FABS, and hire people with Ph.D.'s in solid-state physics. I actually knew one of these people who were fired: She was our housecleaner. And--like the supper-smart garbage man of the Dilbert Cartoons, she was very smart. Smarter than me. I know because she helped me solve…
Maybe too much money is exactly the problem? I rarely see people tackling hard problem for money, because it is not an efficient way of making money.
Too much money in what context? It can be an extremely effective motivator for solving a business problem - hire smart people to work on it, they'll happily go work for double their pay.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#189We're living through the silicon age and Intel has made a total dog's breakfast of it. Stagnant revenues, falling profits. Both should have been growing geometrically. Just compare these companies: https://valustox.com/INTC https://valustox.com/AMD https://valustox.com/AVGO https://valustox.com/AMAT Even Qualcomm has seen good growth: https://valustox.com/QCOM This is how it's done: https://valustox.com/NVDA EDIT the…
Intel can save a lot of money by getting rid of incompetent folks in higher management, closing a lot of projects/teams that do not add value, a lot of middle management, simplifying processes that slow down the teams that are actually doing job, changing culture where working 10hr/wk is not tolerated. They need to do some variation of what Elon did to twitter. I have seen many of these things first hand.
I don’t think twitter is a really good example considering its equity value has fallen precipitously under his reign.
Re: Intel to Receive $8.5B in Grants to Build Chip Plants
#190Often politics and fine print gets in the way. It’s hard to find qualified talented people to build and run a fab Now imagine all the DEI requirements that are added into this grant.
If it is really a national security issue to get onshore fans here in the US they really need to drop all the social equity attachments.