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Intel is doing multi-year billions cost cutting. I believe Intel is intentionally to reduce both the cost and unprofitable/noncompetitive business. They hope the revenue lost on the traditional processors business can be offset by the new IDM revenue. That's a tall order.
Yes indeed, Intel has been pushing to finally reduce their costs by ~ 10B$/year and already ~3B$ in 2023 through many points, also including the reduction of some employees salaries and hugely decreasing huge number of employees and recruitments of new ones…
But to also reduce employees rather than only the amounts of expenses of equipment/fabs increasing production capacity as it has been done by many other companies (like TSMC who reduced 2022 investments to ~36B$ vs the 44B$ initially expected and now 32 ~36B$ expected for 2023, which is anyway still much higher than their previous historical ~10B$/year…) is very critical to be able to efficiently/quickly deploy their new business operations…
And concerning their evolution to strongly enter in foundries, Intel after loosing in 2021 the possibility to acquire ~ 30B$ their “big” initial target GlobalFoundries, they then tried in February 2022 to acquire ~ 5.4B$ Tower Semiconductor but without yet any visibility on its finalisation/approval from all required regulators from ~7 countries…
Any more details? Not hard to believe considering how obvious it was that TSMC is going to be right in the middle of all computer related development for as long as one can project out. It's so hard to know who the winners will be, so why not bet on the horse everyone is going to need to compete in this race in the first place (TSMC).
