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Intel Postpones Innovation 2024 Event, Cites Poor Finances

P

prime007

Active member
The stream of bad news for Intel just seems keep on coming...
www.anandtech.com

Intel Postpones Innovation 2024 Event, Cites Poor Finances

www.anandtech.com www.anandtech.com

Add to Moody's downgrading of Intel yesterday (making borrowing money more expensive)...thank you, @hist78

And now a new legal problem (in additional to the all-but-certain class action lawsuit on behalf of 13th/14th-gen chip customers)...
www.tomshardware.com

Intel hit with lawsuit over $32 billion loss, shareholders complain company hid problems

Was Intel hiding its big problems all along?
www.tomshardware.com www.tomshardware.com

If this wasn't bad enough, there are signs that:
1. the US economy is slowing and may enter into a recession
2. A weak market for Intel's products. A possible CPU glut? (according to @Paul2) No high-demand AI products.
3. Intel will need CHIPS Act 2. Given our divided government, who actually knows if/when that legislation will pass?

Gelsinger famously stated that "I've bet the whole company on 18A". Given recent reports of Intel's cancelled investments in Italy/France, suspension of its planned expansion in Israel, the planned 15% cut to its workforce, and high demand for TSMC's competing N2 node...how much foundry business will be left for Intel 18A?!
www.tomshardware.com

Intel cancels fab investment in Italy and R&D facility in France — chipmaker remains committed to other European expansions

Plans in France and Italy changed.
www.tomshardware.com www.tomshardware.com

I'm no financial analyst but these things really make me believe the "Intel is in a death spiral" narrative.
 


Intel-Inovation-Day-624x275.jpg


Last week, semiconductor giant Intel reported weak quarterly earnings, with announcements made on a massive 15% cut of workforce and an over 20% reduction on capital expenditures in 2024. Now the company seems to make up its mind on cost-cutting, as it has begun started notifying attendees that its fall Innovation 2024 trade show has been postponed, according to a report by AnandTech.

The event, which is previously scheduled in late September, is now rescheduled for some time in 2025, according to a message the company posted on the Innovation 2024 website. However, Intel did not provide a clear timeline for when the event will return.

www.trendforce.com

[News] Intel Delays Innovation 2024 Event amid Financial Challenges, Arousing Public’s Curiosity on 18A | TrendForce Insights

Last week, semiconductor giant Intel reported weak quarterly earnings, with announcements made on a massive 15% cut of workforce and an over 20% reduc...
www.trendforce.com www.trendforce.com
 
Hmmm.. a lot of people were also thinking Arrow Lake unveil at this time.

Occam’s Razor it could just be an internal decision because of the layoffs and the chaos and optics that brings and not due to product problems.
 
prime007 said:
I've read Pat is a devout Christian so that's probably normal although I don't know what he's quoting on "X" 😅
Click to expand...
He's written (or co-written) two books on the subject of faith and family, and his third book is being released in a couple of weeks.
 
prime007 said:
The stream of bad news for Intel just seems keep on coming...
www.anandtech.com

Intel Postpones Innovation 2024 Event, Cites Poor Finances

www.anandtech.com www.anandtech.com

Add to Moody's downgrading of Intel yesterday (making borrowing money more expensive)...thank you, @hist78

And now a new legal problem (in additional to the all-but-certain class action lawsuit on behalf of 13th/14th-gen chip customers)...
www.tomshardware.com

Intel hit with lawsuit over $32 billion loss, shareholders complain company hid problems

Was Intel hiding its big problems all along?
www.tomshardware.com www.tomshardware.com

If this wasn't bad enough, there are signs that:
1. the US economy is slowing and may enter into a recession
2. A weak market for Intel's products. A possible CPU glut? (according to @Paul2) No high-demand AI products.
3. Intel will need CHIPS Act 2. Given our divided government, who actually knows if/when that legislation will pass?

Gelsinger famously stated that "I've bet the whole company on 18A". Given recent reports of Intel's cancelled investments in Italy/France, suspension of its planned expansion in Israel, the planned 15% cut to its workforce, and high demand for TSMC's competing N2 node...how much foundry business will be left for Intel 18A?!
www.tomshardware.com

Intel cancels fab investment in Italy and R&D facility in France — chipmaker remains committed to other European expansions

Plans in France and Italy changed.
www.tomshardware.com www.tomshardware.com

I'm no financial analyst but these things really make me believe the "Intel is in a death spiral" narrative.
Click to expand...
While I agree that all of this stuff is bad, and I'm not convinced Intel needs another CHIPS Act, I don't believe Intel is in a death spiral. Intel has run into roadmap, competitive, and business problems several times, including:

- The switch from memory to logic chips in the 1980s.
- The Pentium FDIV bug, and Intel's initial response failure.
- The Itanium strategic fiasco.
- Various US and Euro anti-trust rulings against Intel.
- Allowing AMD to pull ahead in 64bit processors (and then implementing AMD's strategy).
- Late to CPU virtualization support, behind AMD (again).
- The billions wasted on the so-called merger of "computers and communications", which involved numerous networking acquisitions which never added long-term value.
- Pushing WiMax and the investment in Clearwire, in a misguided attempt to thwart LTE cellular.
- Missing the mobile and handheld markets altogether.
- Not agreeing to be Apple's fab.
- The business decision not to integrate memory controllers in CPUs in the 2000s, which led to an AMD competitive advantage for a number of years.
- Various GPU-related missteps, which contributed to the rise of AMD and Nvidia GPUs. (Though integrated CPU graphics were a strategic win.)
- Intel's acquisition spree in 2010s, none of which has resulted in the market segment leadership promised, and key examples have been spun out (Altera, Mobileye) or shutdown at a total loss (Nervana, Barefoot Networks).

What a depressing list!

And yet Intel always managed to get up, dust itself off, and regain leadership for a time. I'm not sure if Intel can do it again, and I'm not confident PG is the right leader for the circumstances, but I don't believe that the current troubles are more existential than a couple of items on the list above. If anything, the first item on my list was the worst.
 
I think the speculation that this is tied to product release timelines is off the mark. What’s likely is that them firing 35% of their marketing headcount means they can’t actually put on a huge production like this (it’s probably chaos across their teams scrambling to restructure). Not to mention big flashy conferences are costly and counter to the belt tightening narrative.
 
| Gelsinger famously stated that "I've bet the whole company on 18A".

This may explain execution issues with existing products. (including multiple lawsuits pending)
 
ChrisGar said:
| Gelsinger famously stated that "I've bet the whole company on 18A".

This may explain execution issues with existing products. (including multiple lawsuits pending)
Click to expand...
I've thought about this a bit.

Normally these shareholder lawsuits are just shakedowns that get settled for a few million dollars, with lawyers getting most of it... but Pat coming out and saying "I bet the whole company on 18A" basically opens up the door to legal discovery on how 18A is doing and if the shareholders were misled on it, and that discovery is something I think Intel will want to avoid, so I would expect a pretty big settlement on it.
 
count said:
I've thought about this a bit.

Normally these shareholder lawsuits are just shakedowns that get settled for a few million dollars, with lawyers getting most of it... but Pat coming out and saying "I bet the whole company on 18A" basically opens up the door to legal discovery on how 18A is doing and if the shareholders were misled on it, and that discovery is something I think Intel will want to avoid, so I would expect a pretty big settlement on it.
Click to expand...
I doubt it. Intel has one of the biggest legal teams in US industry. I have confidence they'll delay and divert for a long time before settlement discussions start.
 
coldsolder215 said:
You know you're screwed when your CEO is quoting the bible on twitter.
Click to expand...
This take is simply lazy, and lame to boot. Quoting books - whether the Bible or otherwise - is quite common for many executives. And us regular people. It's hardly a death knell, especially if you actually read & (attempt to) understand the quoted verses:
"Let your eyes look straight ahead; fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways," Proverbs 4:25-26.
Focus. Keep your hand steady and your perspective straight. Don't be distracted - say by the noise surrounding you and tough decisions.
Hardly a religious mantra and could be (or has been) stated similarly by many business or other leaders in various situations.

Lack of respect for or understanding of the Bible doesn't make the quote a bad thing, nor an inevitable crutch and sign of weakness or pending doom.
 
count said:
I've thought about this a bit.

Normally these shareholder lawsuits are just shakedowns that get settled for a few million dollars, with lawyers getting most of it... but Pat coming out and saying "I bet the whole company on 18A" basically opens up the door to legal discovery on how 18A is doing and if the shareholders were misled on it, and that discovery is something I think Intel will want to avoid, so I would expect a pretty big settlement on it.
Click to expand...

Not just shareholders. At least a couple of law firms are soliciting Intel customers to put together lawsuits for 2 different CPU quality/reliability issues over the last year.
 
Intel is indicating the event cancellation does not impact (desktop) Arrow Lake’s 2024 launch:

Update – Intel has provided us with the following statement regarding their Arrow Lake CPU launch. As expected, the postponement of Intel Innovation 2024 will not impact the company’s Arrow Lake desktop CPU launch plans. Intel will make “significant announcements this fall”, and Arrow Lake will launch this year.

There are no changes to Intel’s launch plans, timing, or product readiness. We are excited about the new product announcements and momentum we have in store, including significant announcements this fall. We’ll share more details on our next-gen desktop processor products, codenamed Arrow Lake, later this year.
– Intel to OC3D
Click to expand...

Source: https://overclock3d.net/news/cpu_ma...innovation-2024-event-citing-poor-financials/
 
chipsntexas said:
This take is simply lazy, and lame to boot. Quoting books - whether the Bible or otherwise - is quite common for many executives. And us regular people. It's hardly a death knell, especially if you actually read & (attempt to) understand the quoted verses:
"Let your eyes look straight ahead; fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways," Proverbs 4:25-26.
Focus. Keep your hand steady and your perspective straight. Don't be distracted - say by the noise surrounding you and tough decisions.
Hardly a religious mantra and could be (or has been) stated similarly by many business or other leaders in various situations.

Lack of respect for or understanding of the Bible doesn't make the quote a bad thing, nor an inevitable crutch and sign of weakness or pending doom.
Click to expand...
sos-save-me.gif
 
coldsolder215 said:
You know you're screwed when your CEO is quoting the bible on twitter.
Click to expand...
I’m assuming this was meant to be funny — but fwiw Gelsinger came from the “Amish country” of Pennsylvania. This area is highly religious (and conservative) - with the Amish themselves also eschewing a lot of forms of technology. IIRC was raised rural in this area, so very likely it’s part of his family and identity.

Personally I’m a non believer / non religious so I just look the other way at this stuff, but he’s definitely free to share his thoughts on his holy day, using his own account. Whatever people think, he probably needs some calming and reassurance given the humongous task he has to try to turn Intel around, not to mention the impact this is having on people’s lives.
 
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