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I think that this organizational setup makes the problem even worse.
The problem is that new nodes are becoming exponentially more expensive to develop AND require more processing time per wafer. Intel is trying to write off the same CapEx as TSMC is, but over 8 times fewer wafers.
Intel needed to be making the move to separate IFS and compete head-to-head with TSMC 10 years ago to avoid the current problem.
Of course, the math is simple while resolving the issue is clearly not.
you are 100% correct. The math is clear and has been clear since 2019. There is a reason the world went to a foundry model and then that the foundry model contracted to one successful advanced foundry. math
Excel shows this very simply
The answer is a) do not do IDM2.0 or b) get 15B in external foundry business. everything else is a rationalization about why math and profit doesnt matter. One CEO chose a, One CEO chose b. they both 100% agreed on the options. LBT has figure out how to deal with "what if neither happens?"
Side fun excel spreadsheet experiment "if you are not already making money and you are losing money while trying to grow, you cannot catch up to have a positive return.
Sometimes we forget Brian Kranzich Contribution of destroying the Company which would have made IFS lot easier and product wouldn't be in this mess in the first place cause there wouldn't have been any delays
