[HN Gopher] Intel Unleashed, Gelsinger on Intel, IDM 2.0
       ___________________________________________________________________
        
       Intel Unleashed, Gelsinger on Intel, IDM 2.0
        
       Author : kaboro
       Score  : 204 points
       Date   : 2021-03-24 15:38 UTC (7 hours ago)
        
 (HTM) web link (stratechery.com)
 (TXT) w3m dump (stratechery.com)
        
       | paulpan wrote:
       | Great keynote and clearly it's a massive improvement to have a
       | former silicon veteran at the helm again at Intel. For all the
       | major announcements made, I think looking at them in context of
       | the industry and other competitors reveals some interesting
       | nuances:
       | 
       | 1. This is Intel's proverbial hailmary rather than "unleashed".
       | The industry is moving on from x86 and with its other bets (e.g.
       | radio modem, mobileeye) not paid/paying off, the revenue will
       | quickly nosedive within the next few years.
       | 
       | 2. IDM 2.0 is an involuntary move due to Intel's loss of both
       | performance leadership (to AMD/ARM) and fabrication node
       | leadership (to TSMC). Clearly their factories are becoming
       | liabilities and opening up to outside business cushions the
       | freefall.
       | 
       | 3. 2023 is a long time away in the silicon industry. As pointed
       | out in Stratechery, 7nm is actually further delayed than what Bob
       | Swan previously announced. Apple is rumored to be on TSMC 3nm
       | this year and AMD will likely move down to 5nm by next year.
       | Unless Meteor Lake is a massive performance uplift, then it may
       | not change the overall trajectory. Intel's saving grace at this
       | point is the capacity constraints at both TSMC and Samsung.
        
         | MangoCoffee wrote:
         | >7nm is actually further delayed than what Bob Swan previously
         | announced
         | 
         | Intel can't even solve their 10nm yield problem. Its great to
         | have another foundry but Intel needs to step up.
        
           | colinmhayes wrote:
           | Sounds like Intel has solved 10nm and is confident it'll
           | release on desktop this year.
        
         | totalZero wrote:
         | > mobileeye) not paid/paying off
         | 
         | Uh, what? Mobileye bagged $333mm in revenue last quarter.
         | 
         | See for yourself:
         | 
         | https://d1io3yog0oux5.cloudfront.net/_9ea32bedbda3919ea6d9a1...
        
         | ksec wrote:
         | >Apple is rumored to be on TSMC 3nm this year
         | 
         | Not sure where that rumour are from. But TSMC 3nm is next year.
         | 
         | If Gelsinger didn't lie, and the original 7nm schedule and spec
         | were unchanged, the 100% increase in EUV usage would actually
         | put it close to if not on par with TSMC 3nm. Although they will
         | still be a year and a half behind TSMC.
         | 
         | And technically 7nm are taping out this year. The only reason
         | why volume product wont come until 2023 is because Intel has a
         | SuperComputer contract to fill with the US DOE.
         | 
         | Both Intel 5nm and TSMC 2nm will transition to GAAFET. But I
         | guess Intel ( Pat ) want us to focus on the strategic changes
         | rather than the detail of future roadmap.
        
           | paulpan wrote:
           | Agreed, TSMC 3nm is slated for full-production next year
           | (2022) but risk production is end of this year.
           | https://www.anandtech.com/show/16024/tsmc-details-3nm-
           | proces...
           | 
           | It depends on how Apple maneuvers. Mobile chips (A15) are
           | high volume so very unlikely to get moved but it's certainly
           | possible for the lower-volume Mac products, e.g. M2/M1X for
           | Macbook/iMac, to switch onto leading-node 3nm if yields are
           | good.
           | 
           | Apple is certainly incentivized as it'd allow them to
           | continue the narrative that their own SOCs are superior to
           | anything else on the market.
        
             | bredren wrote:
             | >Apple is certainly incentivized as it'd allow them to
             | continue the narrative that their own SOCs are superior to
             | anything else on the market.
             | 
             | Hasn't this narrative been largely shaped around
             | performance impact on customer experiences?
             | 
             | Recall the announcement video which was decried as
             | "marketing hype" by some tech voices prior to release.
             | 
             | If so, M2/M1X should be able to continue this narrative on
             | a performance basis alone regardless of whether they make
             | the jump to 3nm.
        
               | sagarm wrote:
               | Apple M1 is on TSMC 5nm; Ryzen 3 is on TSMC 7nm and Intel
               | is famously still on an (advanced) 14nm process.
               | 
               | A big chunk of Apple's power advantage (which can
               | translate to better perf as well, since the key limits
               | are thermal) can be attributed to the process node,
               | though we won't know how much for sure until we get an
               | apples to apples comparison. I agree with Gap, retaining
               | the process node advantage will help sustain and entrench
               | the perception that Apple's chips are better, easing the
               | transition.
        
         | cjblomqvist wrote:
         | 3. It should be noted though that Intels 7nm will most likely
         | be close to TSMCs 5nm. Regardless they're obviously lagging
         | behind.
        
           | readams wrote:
           | They should also announce a switch to the more fantastical nm
           | sizes as well in their next node.
        
             | MR4D wrote:
             | Looks like you got downvoted for this, but honestly, I
             | wonder how much INTC gets dinged in the stock market
             | because of this.
             | 
             | No idea how to measure the impact, but I'm sure it's in the
             | tens of billions.
             | 
             | It doesn't even matter if it's right or wrong - it matters
             | because the headline of 7nm vs 5nm sucks for INTC stock.
             | 
             | I think Intel could easily put some marketing language
             | about shifting to an "industry standard measurement
             | practice" or something similar (remember, it's not for
             | techies, but the people who buy INTC stock).
        
             | gumby wrote:
             | While I agree 100%, I feel compelled to point out that it
             | was Intel who for years embraced and encouraged the
             | bullshit use of clock speed as _the_ metric of performance.
             | 
             | Entirely precise yet only partially meaningful, which is
             | just as true of the chase for node bragging rights.
             | 
             | So there's some karmic justice in Intel being pilloried for
             | being behind in this way.
        
               | totalZero wrote:
               | Not quite. Node numbers don't actually correspond to
               | transistor gate length. So it would be like one company
               | saying "we run at 3GHz" and the other saying "we run at
               | 4GHz" when both run at 4GHz.
               | 
               | Separately, what you are saying is true -- size is not
               | the be-all-end-all of processor performance. But GP is
               | referring to the dislocation between nomenclature and
               | geometry.
        
               | ghaff wrote:
               | That's because Intel was on the single-threaded
               | performance bandwagon for at least one beat too long.
               | (Which was at the time of AMD's first renaissance with
               | Opteron and multi-core.) Which a certain Intel exec--I
               | was an analyst at the time--told me was because Microsoft
               | had such a lack of confidence in their ability to pivot
               | to multi-core architectures. And I have no reason to
               | especially disbelieve that.
               | 
               | Interestingly, the shift to multi-core on the desktop
               | hasn't been the big problem that a lot of people feared
               | it would be. I remember hobbling on crutches cross-
               | country to SF for an Intel quad core (?) launch and there
               | was a lot of hand-wringing on the topic but mostly things
               | worked out.
        
               | gumby wrote:
               | Even considering only single core machines, so much
               | affects workload throughput: thermals, IO system, IO
               | devices...punters were paying a premium for "high speed"
               | laptops that were slower than a desktop with the same
               | clock speed.
               | 
               | This bit Apple too when they boasted of their PPC clock
               | speed, only to fall behind in both clock speed and
               | performance. (I'm a Mac user: this is bipartisan
               | criticism).
               | 
               | I'd say I'm glad those days are over, but of course the
               | deceptive metrics have merely been replaced with
               | different deceptive metrics.
        
         | _carbyau_ wrote:
         | This just seems like Intel's version of Amazon's AWS.
         | 
         | "Hey we have a world class [whatever] over here. Wonder if we
         | can sell it to the world as well as using it for our business?"
        
       | SavantIdiot wrote:
       | I'm curious to see if Gelsinger can fix Intel's 127x fiascos
       | (there are multiple). It's not like the process engineers are
       | sitting around scratching their butts, they are on call nonstop
       | and I know two that have quit due to pressure. He can't drive the
       | engineers any harder, so how is he going to fix it?
        
         | ac29 wrote:
         | For those not in the know, the 127x processes include Intel's
         | 10nm, 7nm, and 5nm manufacturing. I had to look it up.
         | 
         | I'm under the impression 10nm is largely working by now, it
         | just took a _long_ time to become competitive with Intel 's
         | ultra optimized 14nm process. Supposedly they have already
         | shipped 100K+ units of Ice Lake Xeon Scalable CPUs:
         | https://www.anandtech.com/show/16539/intel-ice-lake-xeon-sca...
        
         | ahartmetz wrote:
         | Smarter, not harder, seems to be the solution ;)
         | 
         | Like, say, giving the engineers more say in the goals for the
         | next process(es) to make them achievable. Talking, not ruling.
        
           | SavantIdiot wrote:
           | That statement is cliche for a reason: because there's no way
           | to make the distinction and is entirely subjective. I want to
           | hear his concrete actions from my friends that are still
           | fighting the good fight and haven't quit.
        
       | jerrysievert wrote:
       | I had always wondered why intel hadn't been actively fabbing
       | chips for other customers - it's not like they destroy a fab
       | completely when a new process comes on line (if you live in the
       | Portland area, you can see the rapid and constant build outs of
       | fab space), why not sell that process to others? there does
       | happen to be a global chip shortage after all.
       | 
       | nice to see someone addressing that. I welcome technical
       | leadership back to intel.
        
         | paulpan wrote:
         | I think it was largely due to their historically bleeding edge
         | fabrication tech/node and market share. Until the recent
         | resurgence of AMD and rise of ARM, Intel was able to sell out
         | their inventory and keep their fabs at 100% capacity.
         | 
         | But given the combination of losing the node advantage to TSMC
         | and performance advantage to AMD & ARM, I'm guessing Intel has
         | accumulated inventory and this poses a business risk. Opening
         | up their fabs in the future is a way to mitigate this risk;
         | essentially becoming both a chip seller and external
         | manufacturer.
         | 
         | The other reason is probably textbook monopolistic behavior:
         | vertical integration means if you want top tier chips, there
         | was no other option but Intel. Often overlooked is how closely
         | correlated fabrication node is to chip performance, e.g. if
         | Apple's M1 is fabbed at TSMC 7nm instead of 5nm, the
         | performance wouldn't be so widely lauded.
        
         | MangoCoffee wrote:
         | >why intel hadn't been actively fabbing chips for other
         | customers
         | 
         | Intel foundry have to be a pure play in order to win customers
         | trust. Apple move away from Samsung and now a core customer of
         | TSMC, trust is an issue.
        
           | meepmorp wrote:
           | Is that for IntelFoundaries giving newer process node
           | capacity preferentially to Intel, or corporate IP theft
           | reasons? Or something else I hadn't considered.
        
             | ksec wrote:
             | >or corporate IP theft reasons
             | 
             | This. It is the reason why Apple dont Fab their SoC with
             | Samsung Foundry.
        
               | jerrysievert wrote:
               | not all things that need to be fabbed are cpu/gpu
               | components though, there are plenty of other things that
               | need fab space.
        
               | ksec wrote:
               | That was in the context of parents point of Apple /
               | Samsung or Intel / Nvidia and AMD.
               | 
               | If you have no direct competition with them then of
               | course you can Fab with Samsung.
        
               | Marsymars wrote:
               | Has something changed since Apple fabbed the A9 with
               | Samsung?
        
               | macintux wrote:
               | Did they? I see reports at the time claiming that would
               | be the case, but more recent sources indicate it never
               | happened, that TSMC has been Apple's sole supplier since
               | 2015.
        
         | Nokinside wrote:
         | There is huge demand for for 14nm, 22 nm and 45nm processes.
         | 
         | When fab is 4-5 years old, they start to manufacture other
         | products. Different CPU's, chipsets, SoCs, microcontrollers,
         | NICs, Wi-Fi and Bluetooth chipsets, vechicle SoC's for Intel
         | and Intel customers.
        
           | gumby wrote:
           | Lower margin parts. A good business, but when you have a high
           | margin high volume product, Wall Street considers anything
           | else is to be subtractive from earnings.
           | 
           | This is the microeconomic equivalent of the "dutch disease"
        
       | extesy wrote:
       | I wonder if Intel is also going to increase compensation across
       | the board to be able to execute on this bold plan. Historically,
       | Intel's salaries were among the lowest and it has been losing
       | talent left and right to its chip-making competitors (Apple,
       | Nvidia, etc).
        
       | deadalus wrote:
       | IDM = Internet Download Manager , in most people's mind
        
         | IncRnd wrote:
         | > IDM = Internet Download Manager , in most people's mind
         | 
         | IDM in _most_ people 's minds is Intelligent Dance Music.
         | 
         | But, in Tech I am familiar with many people using IDM for
         | IDentity Management. When I was associated with a different
         | Tech vertical than I am now, people used IDM as an acronym for
         | Integrated Document Mangement.
        
           | technofiend wrote:
           | Eh?
           | 
           | IDM = _Industrial_ Dance Music for me. I guess there are a
           | few definitions floating around.
        
             | monocasa wrote:
             | Industrial sort of lost the war for IDM, and the Industrial
             | Dance Music genre is now called EBM "Electronic Body
             | Music".
        
             | pantulis wrote:
             | Was going the say the same, it's "Industrial" for me, but
             | I've also heard the term referred to "Intelligent".
        
             | IncRnd wrote:
             | True. Industrial Dance Music is not the same as Intelligent
             | Dance Music.
        
       | ece wrote:
       | x86 is IP, Intel Foundry Services is new, and EUV has been
       | embraced. I'm not sure you could ask for more other than
       | execution.
        
       | phcordner wrote:
       | I see the "geopolitical" angle again and it's still not
       | vindicated by this announcement. Nothing that Gelsinger said
       | indicated he came to those decisions by seeing what was cookin'
       | on the threat board:
       | 
       | > We are committed to ensuring this capacity will support
       | commercial customers, as well as address unique government and
       | security requirements in the U.S.
       | 
       | Geographic distribution makes a certain amount of business sense
       | and getting those nice DoD contracts makes even more.
       | 
       | What doesn't make sense is China having Wing Attack Plan R ready
       | to go against TSMC and Samsung.
        
       | kcorbitt wrote:
       | Seems like the biggest news here is Intel committing strongly to
       | its fab business. Walling that division off from Intel's own chip
       | design business is critical to giving it a chance to succeed.
       | Having a third fab with competitive tech (along with TSMC and
       | Samsung) is great for the world!
       | 
       | This is pretty bad for Taiwan geopolitically though... once US
       | chipmakers have a plausible local manufacturing alternative, the
       | US is less likely to risk WW3 by standing up to China if/when it
       | tries to annex Taiwan.
        
         | foobarbazetc wrote:
         | This is a simplistic view that assumes every other factor and
         | actor remains static.
        
         | davedx wrote:
         | I don't think a keynote is bad for Taiwan geopolitically. Intel
         | have a ton of cash on their balance sheet, but they still need
         | to _execute_ on this strategy. It astounds me what people take
         | at face value here, considering the incredible momentum Intel
         | needs to turn its ship around. It reminds me of Elon promising
         | coast to coast FSD.
         | 
         | I also think China/TSMC is more of an economic than an
         | existential risk. The US military doesn't need 2nm
         | semiconductors. US manufacturers are more than capable of
         | supplying essential US supply chains. They're just not cutting
         | edge like the East Asian fabs are.
        
         | Nursie wrote:
         | IIRC TSMC is planning on building fab capacity in the US soon
         | anyway, which adds a new twist to that tale.
        
           | varispeed wrote:
           | I wish TSMC decided to go with the UK. We have ARM here, RPi
           | and others plus very talented people. Hopefully one day it
           | will happen.
        
           | Nokinside wrote:
           | TSMC builds only 25K/month 5nm megafab in Arizona. I suspect
           | that it's mainly for serving the US defense needs.
           | 
           | TSMC's GIGAFABs (> 100K/month) are used for mass
           | manufacturing bleeding edge consumer electronics. They are
           | still build only in Taiwan.
        
             | avs733 wrote:
             | Another way of looking at TSMC's Arizona fab is similar FAB
             | 68 in Dalian, which still seems to have largely been built
             | for strategic relationship building purposes.
        
             | craigjb wrote:
             | TSMC's plans for Arizona have been increased to start with
             | 100k per month with future phases up to 200k [1]
             | 
             | [1] https://technosports.co.in/2021/03/03/tsmc-to-
             | build-5nm-plan...
        
           | gumby wrote:
           | To double click on that: TSMC has been playing the
           | geostrategic game for a while. Taiwan wasn't simply a good
           | choice because it had labor, transport access, and a
           | supportive government: it played to certain Cold War issues.
           | 
           | Then as the mainland market developed they increased their
           | mainland footprint as a hedge (makes it harder for the
           | Chinese government to attack TSMC, though as we've seen from
           | Alibaba, Xi appears happy to "move fast and break things").
           | That did in fact forestall investment in a competitor until
           | recently.
           | 
           | They have also been expanding outside China-Taiwan,
           | distributing their capacity and developing support in the USA
           | and Europe. Worst case (actual shooting war between China and
           | Taiwan) they would have a lot to fall back on.
           | 
           | Hon Hai has followed the same geostrategy (to even greater
           | extreme) with its Foxconn subsidiary.
        
             | baybal2 wrote:
             | > They have also been expanding outside China-Taiwan,
             | distributing their capacity and developing support in the
             | USA and Europe. Worst case (actual shooting war between
             | China and Taiwan) they would have a lot to fall back on.
             | 
             | Very unlikely. In case of a shooting war, the industry will
             | run out of consumables sooner, or later. As a fact, 90%+ of
             | them come from the Taiwan/Japan/Korea triangle, and just
             | any military move in the region will be effectively
             | shutting the industry down globally.
        
         | cogman10 wrote:
         | > Seems like the biggest news here is Intel committing strongly
         | to its fab business. Walling that division off from Intel's own
         | chip design business is critical to giving it a chance to
         | succeed. Having a third fab with competitive tech (along with
         | TSMC and Samsung) is great for the world!
         | 
         | Yes and no. This is also a possible signal that Intel is
         | getting ready to go fabless. AMD made similar moves with
         | Globalfoundries before parting ways.
        
           | sremani wrote:
           | For the foreseeable future owning Fabs is fastest way to be
           | subsidized by American tax payer.
           | 
           | Intel may make it modular, but Intel will still own those
           | fabs. I do not see them spinning fabs as separate business at
           | least for the decade of 20s.
        
           | davedx wrote:
           | Intel already signalled that under their last CEO. Then they
           | signalled something else. Now there's a "best keynote ever"
           | with their latest signalling....
        
           | UncleOxidant wrote:
           | Going fabless by building new fabs?
        
         | rllearneratwork wrote:
         | we (US voters) should be pressing our government to stand up
         | for Taiwan against ccp's bullying.
        
           | curiousgal wrote:
           | Palestine too since we're pretending to care about the small
           | guy.
           | 
           | This isn't an attempt to start a debate, just saying that the
           | U.S. won't intervene unless there's material gain, regardless
           | of what the voters want.
        
             | meepmorp wrote:
             | > This isn't an attempt to start a debate,
             | 
             | It's really more of a petrol bomb, yeah.
             | 
             | Realpolitik is what it is, but in this case standing up for
             | the cause of Taiwanese freedom against (mainland) Chinese
             | aggression aligns fairly well with the current political
             | climate in the US. I'm willing to accidentally do the right
             | thing if we have to.
        
             | vkou wrote:
             | Instead of worrying about Palestine, why not stop our own
             | bullying in Central and South America, first?
        
           | thereddaikon wrote:
           | They are. The last few years have caused a fairly major
           | change in American's attitude towards China and Taiwan. In
           | the past the US gave Taiwan half hearted support, some tech
           | here, old destroyers there etc. Their military was a mix of
           | obsolete hand me downs and domestically developed solutions.
           | But we just sold them the latest and greatest F-16 variant.
           | Just the other day a deal was signed to share technology to
           | help Taiwan develop modern submarines. And there's a lot more
           | going on behind the scenes no doubt.
        
             | Der_Einzige wrote:
             | Trump's policies towards communist china were so bad that
             | rex tilerson is on record as saying that at the end of his
             | time working for trump we were farther behind with china
             | than we were when he took office.
             | 
             | Biden has to repair our US hegemony. Trump sure hurt it a
             | lot in spite of his anti-china rehtoric.
             | 
             | Selling weapons to taiwan doesn't contain china. We will
             | send our own guns if a hot war is brewing there.
             | 
             | Taiwan recognition is not the same thing as meaningfully
             | containing china. The TPP and asia pivot from obama was the
             | last time that america seriously tried to restrain the rise
             | of china.
        
               | VRay wrote:
               | You mean this? This is what you wanted?
               | https://www.eff.org/issues/tpp
        
               | Der_Einzige wrote:
               | I personally oppose the TPP on the intellectual property
               | grounds et al brought up here - but its purpose to
               | contain china is what I was highlighting.
        
               | ethbr0 wrote:
               | Parent's point was the TPP was explicitly designed to
               | economically isolate China from its neighbors.
               | 
               | Trade deals are ugly.
               | 
               | But if your geopolitical goal is to prevent Asia from
               | moving closer to China, you can, and we have, done worse
               | than the TPP.
        
               | bellyfullofbac wrote:
               | Yeah, and then Trump pulled out of TPP, and last year
               | everyone signed this deal, including China: https://en.wi
               | kipedia.org/wiki/Regional_Comprehensive_Economi...
               | 
               | And people still celebrate Trump for being tough on
               | China...
        
               | xxpor wrote:
               | Whoop de do. Yeah the copyright stuff sucks but a hot war
               | sucks worse. Don't lose the forest for the trees here.
        
               | mlyle wrote:
               | > Selling weapons to taiwan doesn't contain china. We
               | will send our own guns if a hot war is brewing there.
               | 
               | All of these states need to be strong enough to be a
               | credible deterrent to invasion on their own.
               | 
               | US support is neither speedy nor certain. And a speedy
               | capitulation by Taiwan compromises the US's ability to
               | help even if willing.
        
             | tlear wrote:
             | Original step to help with manufacturing of the subs came
             | when US brokered a deal with MHI 3 years ago. The somehow
             | magically "retired" MHI engineers appeared in Taiwan to
             | help in development
             | 
             | US does not have expertise to make modern non-nuclear subs.
             | China can intimidate anyone in Europe not to sell. It was
             | fortunate for Taiwan that Chinese pissed off Japan enough.
             | Half a dozen of Soryu knockoffs can shut down PRC maritime
             | trade if needed.
        
           | meepmorp wrote:
           | We should also be realistic about the strategic risks of
           | having such a heavy dependency on semiconductor fabrication
           | that's within easy reach of the PLA. Mitigating that risk is
           | critical, and orthogonal to resisting the PRC's aggression
           | towards the RoC.
        
         | greggyb wrote:
         | It is unlikely that Nvidia and AMD will want to use Intel as
         | their foundry. It is unlikely that Intel would be willing to
         | offer pricing compelling enough to entice those two to use
         | their foundries.
         | 
         | So long as TSMC and Samsung remain competitive (note, this
         | doesn't mean better, just close enough -- better is also fine),
         | I expect the vast majority of AMD and Nvidia chips to be
         | manufactured by those two.
        
           | redisman wrote:
           | > It is unlikely that Nvidia and AMD will want to use Intel
           | as their foundry.
           | 
           | Why not? Nvidia seems to be very pragmatic in their foundry
           | picks on what's available for example.
        
           | jvalencia wrote:
           | If the foundry business can create a competitive product that
           | saves Nvidia/AMD manufacturing costs, they'll pay. Business
           | allegiances change all the time when it impacts the bottom
           | line.
        
             | greggyb wrote:
             | Yes. I didn't say that this wouldn't happen. I just
             | observed that none of the three players among AMD, Nvidia,
             | and Intel have an active interest in working together.
             | Practicality will trump, but I suspect that given a choice
             | among Intel and another closely-priced, competitive
             | foundry, both AMD and Nvidia will choose the latter.
        
             | ethbr0 wrote:
             | If the Intel foundry business creates supply, even for
             | people who are not Nvidia/AMD/Apple, they still win via
             | increased competition on TSMC and Samsung.
        
           | KoftaBob wrote:
           | Couldn't you say the same about smartphone makers using
           | Samsung's display panels, despite them being a direct
           | competitor?
        
         | User23 wrote:
         | Taiwan is already China's anytime they want to take it. Every
         | time the US games it out they get crushed.
        
           | valuearb wrote:
           | There is a cost to everything.
        
           | flente wrote:
           | Source?
        
             | User23 wrote:
             | https://news.yahoo.com/were-going-to-lose-fast-us-air-
             | force-... and https://www.news.com.au/world/north-
             | america/the-us-could-no-... come up easily and those are
             | just some of the most recent. Happens every time.
             | 
             | It helps of course that the PLA's primary objective is war
             | fighting whereas outside of special operations the US
             | military's priorities are more diversified.
        
         | baybal2 wrote:
         | > This is pretty bad for Taiwan geopolitically though... once
         | US chipmakers have a plausible local manufacturing alternative,
         | the US is less likely to risk WW3 by standing up to China
         | if/when it tries to annex Taiwan.
         | 
         | I doubt it changes much to the demise of modern world. The
         | industry will still go down given that you have many, many,
         | many more things in the semiconductor supply chain that is run
         | by some single vendor in the world from Taiwan, and that
         | includes consumables too.
         | 
         | US may get a modern fab, or two, but it will still eventually
         | run out of many know-how intensive inputs for those fabs.
        
         | MangoCoffee wrote:
         | judging from all the recent moves by TSMC with a fab in AZ and
         | opening a Japan subsidiary. i believe the TSMC leadership have
         | the same concern as you. the latest tech is probably going to
         | stay in Taiwan but TSMC is spreading out to reduce the risk.
        
       | thu2111 wrote:
       | I'm bullish on Intel. Having an engineer at the top will fix all
       | sorts of subtle problems quite quickly. Their manufacturing
       | process for both 10nm and 7nm are now supposedly back on track,
       | and yet they have a large backlog of designs waiting for the new
       | processes to ramp up. We may see rapid performance increases from
       | them now their pipeline is unblocked.
       | 
       | Additionally, US politics is now aligning across the aisle
       | against China, and relying too heavily on TSMC looks like a
       | potential future geopolitical problem. Intel is the only firm
       | that can realistically keep up or out-fab TSMC and thus the USG
       | will be loathe to let it even look like it might fail. Simply
       | having fabs physically within your territory but managed by a
       | remote firm, is clearly no substitute for having fabs actually
       | managed by a domestic company (consider how many ways there must
       | be to do the equivalent of SSH-ing into a fab, or otherwise
       | subtly sabotage it from HQ).
        
         | jcheng wrote:
         | Is this year's claim of "supposedly back on track" more
         | credible than every previous year's? (Honest question!)
        
           | totalZero wrote:
           | If the first thing Gelsinger does in the new role is to lie
           | about progress, his credibility will be ruined.
           | 
           | Conversely, if he were to say "it's worse than I feared," he
           | won't personally be blamed because the problem preceded his
           | return to Intel.
           | 
           | So I think the claim can be viewed with a greater sense of
           | honesty than before.
        
         | valuearb wrote:
         | He just announced another delay to 7 nm.
        
         | hctaw wrote:
         | > Their manufacturing process for both 10nm and 7nm are now
         | supposedly back on track, and yet they have a large backlog of
         | designs waiting for the new processes to ramp up
         | 
         | From what (little) I know of the industry this isn't a good
         | sign. Engineers working on the fab processes and packaging have
         | to work closely with designers throughout the product design
         | cycle, repeatedly taping out variations to fit onto the process
         | as it is built out.
         | 
         | That's part of why Intel historically used the tick/tock design
         | cycle, designing a new thing to be built on a new process has a
         | multiplicative effect on the time to market because of the way
         | the unknown-unknowns of both sides impact each other, and the
         | large amount of specialized labor to mitigate everything.
         | 
         | It doesn't help that they lost a ton of institutional knowledge
         | over the last decade to their competitors through layoffs
         | disproportionately hitting senior staff.
        
           | genericone wrote:
           | The way I've heard it is that the layoffs were
           | strategically/discriminatorily targeting senior staff,
           | because of course they are the ones with the most
           | institutional knowledge and therefore paid the most.
        
         | agloeregrets wrote:
         | > Intel is the only firm that can realistically keep up or out-
         | fab TSMC
         | 
         | Samsung?
         | 
         | Realistically, Intel needs a route to actually playing at
         | TSMC's game, currently they are instead working on paying TSMC
         | to make them chips.
         | 
         | Also, nitpick here, but the TSMC problem is that China might
         | roll in tanks, not that China controls it. Realistically
         | speaking, it's a reasonable cause for US millitary involvement
         | if China did. Lol, there's my World War III Shark-jump Theory:
         | TSMC.
        
           | onepointsixC wrote:
           | Intel's new GPU's need the all the advantages they can get to
           | survive market entry. When Intel's process is ready,
           | shipping, and better then they can switch.
        
             | agloeregrets wrote:
             | From a product perspective, totally agree, but from a
             | strategy perspective, Intel getting to a level of beating
             | TSMC is very very far off. Currently they are funding the
             | development of the next chip that will beat them elsewhere.
             | 
             | Personally, if Xe production funds TSMC's 3nm node that
             | will be bought out by Apple and AMD then Intel probably
             | should realize that the limited money they will make from
             | GPUs will be dwarfed by the losses from improving their
             | competition.
        
             | dathinab wrote:
             | Through don't forget that due to TSCM being overloaded with
             | requests and Intel having their own fabs they can still
             | sell chips for (for them) good prices even if they are
             | worse.
             | 
             | In the end getting a CPU is normally more important then
             | getting the best CPU.
        
           | MangoCoffee wrote:
           | >TSMC problem is that China might roll in tanks
           | 
           | TSMC have fab in China and currently building one in the US.
           | TSMC is also opening an expansion in Japan.
           | https://www.reuters.com/article/us-taiwan-tsmc/tsmc-to-
           | raise...
           | 
           | the latest tech is probably going to stay in Taiwan but
           | judging from all the recent moves by TSMC. it look like they
           | are spreading their wings to reduce the risk.
        
         | madspindel wrote:
         | Not just the US. 8% of the manufacturing is done in EU when
         | like 90% of the global supply is made with European ASML
         | machines... I don't think it was a coincidence that Gelsinger
         | mentioned national security, EU, and ASML in his speech.
        
           | craigjb wrote:
           | Keep in mind, a semiconductor fab has hundreds of other
           | machines and equipment involved, and US companies are some of
           | the biggest suppliers (Applied Materials, Lam Research, KLA-
           | Tencor--all multi-billion dollar companies).
           | 
           | Lithography is definitely key, but all the equipment and
           | process must work together.
        
         | BeetleB wrote:
         | > Having an engineer at the top will fix all sorts of subtle
         | problems quite quickly.
         | 
         | Note that Intel's current fab problems were well underway when
         | there was an engineer on top, and that engineer was a fab
         | person. Pat is not.
        
         | onepointsixC wrote:
         | Same here. This looks like the exactly the right move Intel
         | needed.
         | 
         | I don't think enough people fully appreciate that just about
         | the entire world's leading edge supply is located within cruise
         | missile range of China. The CCP could cripple the global
         | economy in under an hour. Having supply chains out of their
         | reach is not a nice to have, it is a must.
        
           | MarkSweep wrote:
           | I assume that China uses some TSMC chips. Though their "Made
           | in China 2025" plan involves creating more of their own
           | chips.
        
       | PaulHoule wrote:
       | My take is kinda the opposite. It is like a WWII movie where the
       | ship is rudderless and the enemy submarine is circling around and
       | they're wondering if they need one or two torpedoes to finish it
       | off and the captain is on the bridge shouting that the king is
       | still on the throne and the pound is still worth a pound.
       | 
       | Intel becoming the best foundry in the world might be the only
       | way they can sell vastly more chips, but it's not easy; and it's
       | not being headed by a turnaround king, but rather the master of
       | harvesting (why is there still vmware around since virtualization
       | became a feature of chips and operating systems?)
        
         | mathgorges wrote:
         | > (why is there still vmware around since virtualization became
         | a feature of chips and operating systems?)
         | 
         | Because VMware (mostly through acquisitions) makes a whole
         | bunch of other stuff now too.
        
         | anyfoo wrote:
         | > why is there still vmware around since virtualization became
         | a feature of chips and operating systems?
         | 
         | Because, besides the need for a frontend, there's a lot of
         | devices to emulate.
        
           | xxpor wrote:
           | Any even then, it's like asking why VMWare still exists when
           | qemu is out there for free. Completely different markets.
        
         | walterclifford wrote:
         | > why is there still vmware around since virtualization became
         | a feature of chips and operating systems?
         | 
         | If you take a look at https://www.vmware.com/products.html
         | you'll note the majority of VMware's products are NOT related
         | to compute virtualization (and a very significant entry from
         | that category, vSphere Hypervisor, is given away for free).
        
         | windexh8er wrote:
         | > why is there still vmware around since virtualization became
         | a feature of chips and operating systems?
         | 
         | I'd have to say - if you think VMware is delivering only
         | virtualization to their customers then you probably haven't
         | looked at their portfolio as of recent.
         | 
         | They have over 60 unique products that target many different
         | areas of compute in the enterprise. Gelsinger is generally
         | attributed for keeping VMware relevant. Not everybody is a
         | consumer of a hyperscaler and some customers want extended
         | enterprise functionality for virtualized (VM and containers)
         | environments.
        
       | gumby wrote:
       | Geslinger was smart to reference Grove: I think people at all
       | levels of Intel finally realize that their ship is on fire and
       | are willing to change. I believe the M1, though costing them a
       | very small amount of sales, was the true wake up call, despite
       | being just the most recent arrow from a flock of arrows that has
       | been piercing Intel for _decades_.
       | 
       | If Intel can pull this off it will be one of the most impressive
       | recoveries in history, up there with Watson at IBM, Gerstner at
       | IBM, and Jobs' return to Apple.
       | 
       | And if Intel can pull this off I wonder if someone will be able
       | to do the same for GE.
        
         | DetroitThrow wrote:
         | First time I've felt cautiously optimistic about 'Intel the
         | company' in 10+ years. I think it's possible Intel makes a
         | comeback, but it'll be several years. Hope the new IBM research
         | partnership becomes more integrated as well, I can only imagine
         | positive outcomes from trying to consolidate fundamental semi
         | research there.
         | 
         | Compared to GE... there's been more structural changes to GE
         | over the years which would hurt its ability to regain a useful
         | position in vertical integration from where they're at - they
         | need multiple decades of long term planning to get around this,
         | especially as their industrial side becomes increasingly
         | costly. This is unlike Intel, who is still in a "good" position
         | to pivot on the reality that x86 is a lot less valuable
         | compared to 2009 into a more up-to-date vertical monopoly.
        
         | N1H1L wrote:
         | Is Su at AMD on par with those giants?
        
           | gumby wrote:
           | Yes, it was an oversight on my part.
        
         | nrp wrote:
         | Don't forget Lisa Su's turnaround of AMD as a more proximate
         | example!
        
           | gumby wrote:
           | Yes, that's an excellent one too!
        
         | ZeroCool2u wrote:
         | I'm sorry, I was totally on board and in full agreement with
         | your comment until you mentioned IBM. Am I correct in
         | understanding you're calling Watson a successful recovery for
         | IBM? Jobs returning to Apple, sure. But I don't think I know
         | anyone that would describe IBM as anything other than a
         | flagging behemoth. Please, feel free to convince me otherwise,
         | maybe I missed something.
        
           | gumby wrote:
           | I mean Thomas J. Watson Sr (turned CTR into IBM) and Thomas J
           | Watson Jr (turned IBM into a computer company), not the dumb
           | software platform that the sad, current IBM is overselling.
           | Perhaps you didn't realize why the program bears that name.
           | 
           | Gerstner was astonishing too. I just thought of him as the
           | "cookie guy" when he showed up. But he saved a company that
           | was spiraling towards the ground...he didn't restore it to
           | its former glory but did bring it back to a successful life.
           | An achievement subsequently squandered.
        
             | ZeroCool2u wrote:
             | Oh, that makes so much more sense. Thanks so much for
             | clarifying!
        
           | kken wrote:
           | I guess he referred to Thomas J. Watson, not the "AI" Watson.
        
           | whatusername wrote:
           | You missed what Waston was named after.
           | 
           | https://spectrum.ieee.org/tech-history/silicon-
           | revolution/bu...
           | 
           | S/360 was/is a big deal in history.
        
           | [deleted]
        
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