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:

 

[osnium]

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.

Correct so if Intel can’t pursue future scaling because future volumes can’t justify it then it will be reliant on external foundries anyways. Why not just pull the trigger, write off all the capex, shut down TD and hand the fabs over to GF or TSMC and walk away to survive as a fabless player?

 

[siliconbruh999]

Correct so if Intel can’t pursue future scaling because future volumes can’t justify it then it will be reliant on external foundries anyways. Why not just pull the trigger, write off all the capex, shut down TD and hand the fabs over to GF or TSMC and walk away to survive as a fabless player?

GF doesn't have the ability to handle Intel fabs.

 

[XYang2023]

Intel No.2 for Foundry 2.0 | Electronics Weekly

If the foundry industry is defined as including packaging and mask making as well as front end, then TSMC is No,1 with 35% market share and Intel No.2

www.electronicsweekly.com

 

[hist78]

Correct so if Intel can’t pursue future scaling because future volumes can’t justify it then it will be reliant on external foundries anyways. Why not just pull the trigger, write off all the capex, shut down TD and hand the fabs over to GF or TSMC and walk away to survive as a fabless player?

Intel could spin off either its foundry division or its product division, making each a completely independent company. One or even both of them would likely have a better chance to survive or thrive on its own. On the other hand, pursuing external foundry customers in the name of achieving economies of scale seems like a suicidal mission that is hurting Intel both in the short term and the long term. It can kill the whole company.

Why should we believe that the fabless/foundry business model, which has reshaped the entire industry over the past 30+ years, somehow doesn't apply to Intel?