[HN Gopher] Intel to build Qualcomm chips, aims to catch foundry...
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       Intel to build Qualcomm chips, aims to catch foundry rivals by 2025
        
       Author : mepian
       Score  : 70 points
       Date   : 2021-07-26 21:33 UTC (1 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | mdasen wrote:
       | I'd be more interested in hearing about the terms of the Qualcomm
       | deal. Is Qualcomm putting its eggs in the Intel basket for 2025
       | or has Intel reached an agreement with Qualcomm that Qualcomm
       | will buy from them if it fits Qualcomm's needs and it's ready in
       | time?
       | 
       | If the agreement is "Qualcomm will send _some_ of its business
       | Intel 's way," that isn't a huge vote of confidence. Heck, are we
       | talking about Qualcomm's Snapdragon 8xx series or just some
       | Qualcomm chips like the ones they put in WiFi routers? Or their
       | low-end Snapdragon 4xx series?
       | 
       | The article is kinda spinning it as "Intel will be making the
       | Qualcomm chips going into everyone's phones," but it could be
       | more "Qualcomm is going to have Intel manufacture its low-end
       | stuff which is always behind tech-wise and Intel is giving them a
       | big discount because Intel needs a win."
       | 
       | > In the chip world where smaller is better, Intel previously
       | used names that alluded to the size of features in "nanometers".
       | But over time the names used by chipmakers became arbitrary
       | marking terms... This, he said, gave the mistaken impression that
       | Intel was less competitive.
       | 
       | They are definitely less competitive at this point. Nanometers
       | might not be the right measurement, but one can measure
       | transistor density. Maybe that would make more sense?
       | 
       | Even if "Intel 7" (10nm Enhanced SuperFin) is equivalent to
       | TSMC's 7nm, we saw TSMC's 7nm back in 2018. I have a TSMC 5nm in
       | my pocket. I guess if Intel can keep to its road map, it will
       | catch up. If "Intel 4" comes out with products in early 2023, it
       | won't be far behind TSMC's 3nm process (which will likely debut
       | in the 2022 iPhone).
       | 
       | Of course, we'll have to see how well these Intel chips perform.
       | We should be able to benchmark Intel 7 processors with Alder Lake
       | processors landing later this year. Will these stand up well
       | against AMD's 7nm Zen 2/3? Will they stand up against AMD's
       | upcoming 5nm Zen 4? I guess we'll be able to test Intel's chips
       | against what AMD has been shipping and see how well Intel 7
       | stands up against both 7nm and 5nm processes.
        
         | stefan_ wrote:
         | No one would make WiFi router chips or even low-end smartphone
         | processors on these processes.
        
         | klelatti wrote:
         | Wasn't Qualcomm announced as a 20A customer?
        
       | nightowl_games wrote:
       | They'll do it too. They'll catch up, because it's in the US
       | Government's interest for them to catch up. Buy Intel Stock.
        
         | tim_sw wrote:
         | How can you be sure that it's Intel and not other players or a
         | consortium?
        
           | wmf wrote:
           | If you want a "truly American" company (not TSMC or Samsung),
           | Intel is the only option. The question is whether that's
           | important or not.
        
             | dragontamer wrote:
             | IBM is made at GloFo, which is both an American chip
             | designer with an American fabricator.
             | 
             | But GloFo is falling behind for sure. I don't think POWER10
             | will be made at GloFo.
        
               | RC_ITR wrote:
               | Boy do I have news for you:
               | https://www.mubadala.com/en/what-we-
               | do/semiconductors/global....
        
               | colinmhayes wrote:
               | Intel is trying to buy gf
        
             | nicoburns wrote:
             | Personally, I really hope we keep all 3 of these companies
             | (and maybe gain a 4th competitor in the form of SMIC) for
             | as long as possible. Having a variety of companies
             | producing chips is important both for competition and
             | supply chain resilience reasons.
        
         | btown wrote:
         | I wouldn't go so far as to say "buy Intel stock" because
         | institutional investors have likely already adjusted to the
         | announcement and it's likely priced in.
         | 
         | That said, I think government encouragement is a critical piece
         | of the puzzle and should derisk this operation. The recent
         | supply shocks to the computer industry, when component prices
         | and lead times shot up _independent_ of any geopolitical
         | conflicts (other than COVID), must have been a wake-up call to
         | many that the US 's relative lack of foundry capabilities has
         | real strategic implications.
        
         | aj7 wrote:
         | You first.
        
         | xwdv wrote:
         | Interests can change in a minute, and without warning.
        
         | arcanus wrote:
         | Do you believe the US government is willing to commit the
         | resources necessary for Intel to catch up?
         | 
         | Intel's R+D spending (13 billion U.S. dollars) is already
         | larger than the entire annual NSF budget (10 billion).
        
           | AtlasBarfed wrote:
           | I saw headlines about 52 billion dollars for domestic
           | semiconductor expansion going through Congress. Did that
           | happen?
        
           | totalZero wrote:
           | It's an existential question. Right now the US economy is
           | entirely dependent upon Taiwanese semiconductor fabrication.
           | This isn't a glaring problem yet, because China is also
           | dependent upon the same supply chain, giving rise to a mutual
           | incentive not to rock the boat too hard. However, China has
           | dedicated substantial resources to building its own fab
           | infrastructure since well before the pandemic [0], with the
           | goal of establishing a parallel ecosystem that circumvents
           | the US-controlled supply chain [1]. If the US does not follow
           | suit, its dependence upon Taiwan becomes a massive liability.
           | 
           | How much did we spend on the Iraq War, despite our own
           | country being a major producer of oil and gas? Our economic
           | incentive to entangle ourselves in Taiwan is even greater,
           | but the stakes of military confrontation with China would be
           | more dangerous. How much would you pay to avert such a
           | conflict -- or worse, to avert the consequences of
           | acquiescing to China's expansionism?
           | 
           | I think $200 billion is a cheap price tag for a path forward
           | that involves neither warfare nor perpetual paranoia about
           | every perturbation in the South China Sea. Taiwan established
           | itself as a semiconductor powerhouse largely because its
           | government backed TSMC. South Korea's government bends over
           | backwards for Samsung, which makes up about a fifth of their
           | GDP. The way forward for the US may be similar in mentality:
           | throw the government behind the industry. US fabs need
           | resilient and high-quality infrastructure for power, water,
           | and logistics. We can use the collimated power and authority
           | of the government to yield a vastly more effective long-term
           | solution than piecemeal tax credits on lithography scanners.
           | 
           | [0] https://www.cnbc.com/2019/06/04/china-ramps-up-own-
           | semicondu...
           | 
           | [1] https://www.youtube.com/watch?v=LU2rNB34yY4
        
           | elzbardico wrote:
           | In the great scheme of military spending things, 10 billions
           | is small change.
        
           | lettergram wrote:
           | I believe the US military would easily be willing to plow
           | $10B.
           | 
           | Now, does that mean intel will actually be effective? I have
           | my doubts, baring some sort of shotgun approach where
           | multiple experimental fabs are done simultaneously.
        
             | AtlasBarfed wrote:
             | I have been ragging Intel for a long time since the
             | NetBurst debacle, but it's still a massive company with the
             | x86 cash cow for at least another half-decade until AMD
             | closes a bit of a gap.
             | 
             | They have the resources and history to recover. I have
             | heard references to massive managerial layer problems and
             | treating contractors like crap and the brain drain of the
             | old guard, but those aren't intractable problems.
             | 
             | Intel has responded in the past. AMD looked completely dead
             | in the Hector Ruiz waning days, and look at them now.
             | Empower some good engineers and watch what happens.
        
               | aj7 wrote:
               | Are the maroon notebooks gone yet?
        
             | nicoburns wrote:
             | I'm not sure how much difference that would make. Intel
             | already has $20B in cash reserves and is still making large
             | profits (in the billions of dollars). Their problems have
             | nothing to do with lack money.
        
       | klelatti wrote:
       | Can anyone explain what evidence there is that Intel will be able
       | to deliver all this?
       | 
       | Not taking a view just interested in how to assess the
       | credibility of the roadmap.
        
         | zionic wrote:
         | For the curious:
         | 
         | https://www.tweaktown.com/news/50551/intel-confirms-10nm-pro...
        
         | tablespoon wrote:
         | Per the OP, it sounds like they're taking more
         | conservative/incremental steps now, and their previous fault
         | was that they were too ambitious and tried to do too much at
         | once.
         | 
         | My understanding is Intel's rivals also took a more incremental
         | development process, which basically allowed them to capitalize
         | on Intel's missteps.
        
           | bstar77 wrote:
           | "But David Kanter, an analyst with Real World Technologies,
           | said Intel is being more cautious than in the past. The years
           | of delays resulted in part from the "hubris" of tackling
           | multiple technical problems in a single generation of
           | technology."
           | 
           | That's some serious spin there. The chatter has been that
           | Intel has had poor focus, poor working conditions, poor
           | investments, poor communication within the company and a
           | plethora of hubris. They need a culture overhaul and that
           | seems to be what's happening. The jury is out to where they
           | take this. My bet would be on all of their competitors.
        
           | klelatti wrote:
           | Having watched the Webcast it didn't sound that conservative!
           | 
           | 7,4,3,20A in 4 years.
        
             | websg-x wrote:
             | 7 is half node, 4 full node, 3 half, 20A full node again.
             | Moore's law is doubling of transistors density every 2
             | years, so the roadmap is indeed conservative.
        
         | nicoburns wrote:
         | The fact that they've replaced their CEO with a highly-
         | respected (within the company) former engineer and they've been
         | rehiring a lot of other veteran former employees who were
         | involved in many of their historical successes is certainly a
         | good sign.
         | 
         | It's still a tall order, but my reading is that they seem to be
         | doing all the right things. And they certainly aren't short of
         | cash to invest with.
        
           | arcanus wrote:
           | > rehiring a lot of other veteran former employees who were
           | involved in many of their historical successes is certainly a
           | good sign
           | 
           | They certainly are trying to get the band back together. I
           | see little reason this means they can turn around a huge
           | beast.
        
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       (page generated 2021-07-26 23:00 UTC)