"We believe Intel can return to growth in 2H14/15 as the PC market stabilizes and share gains emerge in tablets, phones, foundry etc.," - I highly doubt it, typical analysts talk...why would their market share increase in phones or tablets??? examples pls...Kris
There's a crossroads ahead for Intel. Krzanich clearly wants the company to find a killer smartphone/tablet design it can make at a cost advantage at 14 and 10nm. If it cannot create such a killer design he may have to figure out whether he can pivot to becoming a killer foundry for an Apple or Qualcomm.
As much as I would hate to say this, I think Intel needs to pick a lane. Will it become a killer smarphone/tablet vendor leveraging its own fab capability, or it will become a killer foundry for others.
Isn't this exactly the same road travelled by some of the Japanese semiconductor companies?
With Dadi dismissed, new internal chip design doesnt seem favored. On the other hand, possibly, customers would be scared to use Intel as foundry, in case Intel suddenly decides to exit foundry business and become direct competitor.
When it comes to design, Intel appears to be definitely stuck in the SLOW lane. That is why Dadi had to GO. But elevating someone INSIDE who is too process oriented when they needed a breath of fresh air in Design is a prescription for disaster. Almost as bad as the prematurely retired last CEO who was not even an Engineer and totally missed the Mobile boat.
@Chipmonk and resistion: I think Intel has plenty of good processor and circuit designers, but they are still far behind Qualcomm in having mobile SoC blocks and exptertise--despite years of efforts.
Re the CEO (BK) I don'[t think it maters if the CEO is a process, design or sales guy as long as he undewrstands the 30K-foot issues in all three areas. I think BK's Quark move shows he understands those issues and as an insider he knows how to work the levers at Intel to get stuff to happen fast.
That said, the mobile train left the station a couple years ago and Intel is still running behind it waiving its hat and carrying its suitcase.
@Junko: Interesting parallel with Intel and the japanese giants it once fought.
I think things will have to get pretty painful for Intel before it gives up the high margin processor busienss for the lower margin foundry busienss. It doesn't even have the skills for the high product/process mix that busienss requires.
@ Rick Merritt. In general I find your opinions spot on. However not in this case. You have titled your article as " ... inflection point ". That is a term which has crept into common usage from Mathematics & then EE but perhaps not fully comprehended. Such points are characterized by very sudden & severe changes in gradient - not visible from 30,000 ft and require close monitoring. So what is needed "...inside" is someone at the helm who can call the shots based on hard personal knowledge where there is weakness / delay i,e. architecture and design and not lose focus, as you have rightly pointed out, by dabbling into lower margin Foundry services where the incumbent feels conmfortable in because of his Process background. A person with strength in Design would not have even considered that diversion seriously.
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