Sen. Warren: Intel is a failing company

[Xebec]

https://twitter.com/x/status/1963722235543445619

I think there is some merit to this argument; Pat definitely went too far on building things without customers, but I suspect he also had to go a certain distance in construction to be eligible for CHIPS money too..

 

[XYang2023]

I think there is some merit to this argument; Pat definitely went too far on building things without customers, but I suspect he also had to go a certain distance in construction to be eligible for CHIPS money too..

In my opinion, he was played by politicians and peer companies—or perhaps misled by his own beliefs. He mentioned a "whale" customer several times initially, but in the end, there was no such customer for 18A. I believe competitors understood that if Intel committed to the CHIPS Act and the foundry strategy, it could weaken the company's other divisions. That’s why Qualcomm is now openly challenging Intel’s position in the laptop space.

That said, I still believe Intel's IDM model remains a strong competitive moat in the laptop market—and across its broader product lineup. However, the company should avoid having excess capex tied up without generating meaningful returns.