Intel will shut down its automotive business, lay off most of the department’s employees

[hist78]

"Intel will shut down its small automotive business and lay off the majority of the workers in that segment, the latest step in the chipmaker’s dramatic downsizing.

“Intel plans to wind down the Intel architecture automotive business,” the company told employees Tuesday morning in a message viewed by The Oregonian/OregonLive. The company said it will fulfill existing commitments to customers but will lay off “most” employees working in Intel’s automotive group."

Intel will shut down its automotive business, lay off most of the department’s employees

It's the latest step in the chipmaker's dramatic downsizing.

www.oregonlive.com

 

[osnium]

"Intel will shut down its small automotive business and lay off the majority of the workers in that segment, the latest step in the chipmaker’s dramatic downsizing.

“Intel plans to wind down the Intel architecture automotive business,” the company told employees Tuesday morning in a message viewed by The Oregonian/OregonLive. The company said it will fulfill existing commitments to customers but will lay off “most” employees working in Intel’s automotive group."

Intel will shut down its automotive business, lay off most of the department’s employees

It's the latest step in the chipmaker's dramatic downsizing.

www.oregonlive.com

Is it because Intel is not competitive or is it an issue with margins?

 

[MKWVentures]

Good move. Get out a businesses that are not making a difference.

 

[hist78]

Good move. Get out a businesses that are not making a difference.

These are small cuts compared to Intel’s overall size. Others with a bigger impact, such as the foundry operations for external customers, might also be part of the downsizing plan.

 

[osnium]

These are small cuts compared to Intel’s overall size. Others with a bigger impact, such as the foundry operations for external customers, might also be part of the downsizing plan.

If Intel shuts down foundry for external customers, it’s basically means that they will stop scaling because the cost structure won’t support it.

 

[siliconbruh999]

These are small cuts compared to Intel’s overall size. Others with a bigger impact, such as the foundry operations for external customers, might also be part of the downsizing plan.

These may be based on external customers that never panned out so they are letting them go.

 

[hist78]

If Intel shuts down foundry for external customers, it’s basically means that they will stop scaling because the cost structure won’t support it.

At what cost? Intel could lose economies of scale and be less profitable if it doesn't receive orders from external foundry customers. But the company could go bankrupt if it cannot recover the massive Capex investments made for external foundry operations.

Right now, Intel's top priority is survival.

 

[XYang2023]

From analyst comment today: