To
@hkwint and
@VCT,
There are things in Intel's earnings report I don't understand. Using CCG as an example.
Deploying new manufacturing technologies may increase expense but they are always amortized to multiple years (say five years) by taxing and accounting rules. Intel is not a startup company and they know how to handle it. Intel did explain why CCG's expense increased but didn't explain convincingly why CCG revenue stays flat, $40.5 billion in 2021 vs. $40.1 billion in 2020.
On the other hand Intel managed to increase CCG 2020 revenue by 8% from 2019 under the horrible supply chain disruptions during the 2020 Covid-19 pandemic. Then in 2021 under the assault of Covid-19 all top 17 semiconductor companies (except Intel) experienced double-digit growth! Intel is still blaming this staggering CCP 2021 revenue to Covid-19 and supply chain problems. Why Intel is so different from other? I don't expect CCG to grow as much as AMD's 65% but I don't think 5% to 10% is unreasonable for Intel to has achieve in 2021.
View attachment 638
Source:
https://semiwiki.com/forum/index.ph...o-have-10-0-billion-in-sales-this-year.15237/
In addition to Intel's official explanations, my
guess/speculation about the staggering 2021 CCG revenue and its increased expense is as follows:
1. Intel might offer various incentives to CCG customers in order to compete against AMD and maintain volumes. Those incentives might not impact the revenue and reduce the ASP at all. For example, offering some joint marketing/advertising money to PC manufacturers.
2. Intel's CCG products doesn't have a good lineup to meet market demand.
3. Intel's manufacturing capacity and yield limited CCG's growth.
3. AMD is eating into some Intel's market.
4. Intel decided to let CCG to shoulder more cost to help DCG (Data Center Group). Intel DCG 2021 revenue was down 1% from 2020. Again DCG's 2021 negative growth is against the performance of the whole semiconductor industry achieved.