Inside Intel’s Bold $26 Billion U.S. Plan To Regain Chip Dominance
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- Опубликовано: 5 ноя 2021
- For decades, Intel was the leading maker of the world’s most advanced chips. Intel’s history is interwoven with that of Silicon Valley, credited with the invention of RAM and microprocessors, the building blocks of modern computing. Now Intel has fallen behind. But its new CEO, Pat Gelsinger, has a bold plan to catch up to Samsung and TSMC by 2025, by building new chip fabrication plants in the U.S., Europe and Israel totaling more than $44 billion. CNBC got an exclusive tour at the fab expansion outside Portland, Oregon, that’s set to open early next year.
The world’s smallest and most-efficient chips are usually referred to as 5 nanometer, a nomenclature that once referred to the width of transistors on the chip. They power cutting-edge data processing and the latest generation of Apple iPhones. TSMC and Samsung make all of these 5-nanometer chips at fabs in Asia.
“They took their eye off the ball,” said Stacy Rasgon, an analyst at Bernstein. “Once you fall off the treadmill, it’s really really difficult to get back on. It’s a very dynamic and fast-moving industry.”
In 1990, 37% of the world’s semiconductors were made in the U.S., according to industry association Semi. Last year, U.S. market share was down to 12%, according to the association. The government is hoping to change that with the CHIPS Act, which includes a proposed $52 billion in subsidies for chip companies like Intel that commit to manufacturing in the U.S.
“It also starts building up that base within the United States, so that the United States can become more self-sufficient,” said Ann Kelleher, Intel’s senior vice president of technology development .
TSMC is responsible for 92% of the world’s 5-nanometer chips, according to research group Capital Economics. This leaves the global chip supply vulnerable to natural disasters like earthquakes and the region’s current drought. There’s also the escalating geopolitical tension between China and Taiwan, as well as the U.S.-China trade war.
“Every aspect of defense, intelligence, government operations is becoming more digital,” Gelsinger said. “And we want to rely on foreign technology for those critical aspects of our defense and national security? I don’t think so.”
The next steps in Intel’s playbook include a chip so efficient that the company didn’t measure it in nanometers but with an even smaller unit of measurement called the angstrom. Intel said the 18a, which is in development for 2025, will accelerate the company past its competitors.
“We will be the world’s largest integrated design and manufacturer of silicon for the long term,” Gelsinger said.
“It’s a tall order and it is not my expectation that he will hit that,” Susquehanna’s Rolland said. “But if he could hit that timetable, it would put them back, in my opinion, on par with TSM head to head.”
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Inside Intel’s Bold $26 Billion U.S. Plan To Regain Chip Dominance
I’ve been an investor for 30 years. One thing I’ve learned is these analysts you see on TV never get anything right. Everything they say sounds logical, but it is usually wrong. If they could really predict the future of companies, they wouldn’t tell you for free on tv.
they dont have vision and dont understand technology. When you dont fully understand a hyper complex system how can you predict its future?!
💯
Agreed.
Whatever they say you do the opposite. That’s what I’ve learnt. 🤣
@Technotopia I know they dont tell me everything because i know everything myself. Im a microprocessor designer.
They will never overtake Doritos
Did you know that Doritos were invented at Disneyland in 1964?
Nor will they have a chance against Funyuns.
You never know. Silicon flavored dip may be the next big thing.
@@pjacobsen1000 I like your optimism. Maybe Frito-Lay will introduce a 2mm Chilli
Cheese Chip.
Doritos has high power consumption. Isn't actually effecient
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13:35 5nm chips are NOT in NASA spacecraft and rovers. The radiation regimes they have to operate in would fry them in minutes. Perseverance rover on Mars uses BAE RAD750 chips whose smallest feature sizes are 150nm, 30 times linearly smaller, 900 times less dense in total features.
Yes, I was also annoyed at this. Space hardened processors are made with silicon on sapphire instead of plain silicon wafers. In addition the transistor density of intel 10 nm process is about equivalent to TSMC & Samsung's 7 nm. CNBC couldn't be bothered to report this accurately either.
en.wikipedia.org/wiki/Radiation_hardening
30x linearly bigger you mean.
Even on earth these cosmic flips occur so often. In space it'll go nuts.
@@striker44 physical size, yes. In terms of transistor count, smaller.
@@prateekpanwar646 the latter is already pointed by his comment on density. I am talking about the lateral dimension or size comment.
It’s almost like they shouldn’t have spent $60 billion on stock buybacks and instead been investing in their chip technology.
What happens when you put finance people in charge of a tech company.
Correct.
Top people in the company ended up with tens of millions of dollars. They would probably disagree with you.
Hey man the executives got fabulously wealthy and it was worth it to them
Their legacy victory is typically a barrier with this type of company... The swampy politicians got overpaid but not for shareholders interests
On technology
tsmc actually pays their engineers in Taiwan as much as Intel pays their engineers in Arizona
The brightest phD graduate from MIT, CIT, Stanford , Berkley now goes to Google, apple, FB, Tesla … Intel is not on their top 10 dream job list
While top graduates in Taiwan still joins tsmc
TSMC’s night hawk project actually make 24 hours, 3 shifts R&D
One of their RD executive joked about it : intel’s people are 2x smarter than my engineer , but we work 3 times harder
It's a play field with only 3 players for decades, TSMC, Samsung, and Intel. Samsung already pour $17bn to build a semiconductor factory in TX, and they are trying to get it online very very quickly. It's not in our favor, as consumers, if Intel exits the game. Let's hope Intel can make a strong come back.
They HAVE. Intel for the future
With a free 26 billion, why wouldn't they make it?
Do you support your government not having money for veterans but having money to give to Intel for no reason?
Let's not talk as though Intel isn't one of the most profitable companies in the US...they can certainly afford to build their own damn factories.
Shame on Biden for this shameless corporate welfare and theft of tax dollars.
They are going to have too. TSMC will vanish if China gets their way. China might get their fabs but they will not be able to make their chips without the help of the rest of the world. TSMC is a joint venture of allot of companies in Europe and other places in a sense they supply TSMC with the resources for them to make all the chips. Resources China does not have. The smartest thing TSMC can do right now is move all their manufacturing to the United States if they want to still exist in the future. If not its just going to be Samsung and Intel.
When the commentator said he had no idea how a company could miss a completion date for new technology development, he exposes himself as someone that has never tried to build something completely new. Engineering at this level is seriously hard and hideously complex.
I don't get the skepticism these pundits are exhibiting towards Intel. Okay Intel had made some bad business decisions in the past like missing the mobile market, so what. Lot's of businesses have made bad business decisions and recovered. Look at Apple, back in the 90s it was near bankruptcy due to its bad product lineup and today they are one of the most successful companies of all time. Intel has the tools, know-how and the capital needed to recover.
Another thing to remember is that the US government is going to be a big supporter of Intel's efforts in order to gain independence from Asia. So Intel has that going for them. Having U.S. as a sponsor is not a bad thing for the company.
@@edwint1780 True, Apple also missed the opportunity to aquire Tesla which is now a trillion dollar company. Lik you said, many companies have made mistakes
@George... Couldn't agree more.. We are talking about nanometres here and it's all high end bleeding edge technology... Can't imagine the engineering challenges required to overcome to lessen each nm.. Which commentators will never appreciate
Dude had no volume other than "scream" as well, very annoying
And yet both TSMC and Samsung managed to succeed in reaching 5nm and overtake Intel. There should be no excuses, Intel messed up. If it's not abundantly clear at this point: Playing the fab game is a winner takes most competition. Intel doesn't get much more than scraps for being second place in the transistor race.
competition is always a good thing .... I wish them plenty luck
competition is a sin
@@starwreck *lack of education
@@richardk2495 he must be one of those socialists that spends all day ready Marx and Lenin
@@jorgenascimento9710 along with authoritarian theocrat.
bring the fab back!!
Intel engineers work 8-5 M-F, Samsung and TSMC engineers work 6-6 M-S. There is no way Intel will ever catch up.
Holy god...i ll pretend i didnt read this.
Senior process engineers don’t work 9-5 at Intel. Lmao.
It’s a grueling exhausting job.
I'm glad Intel engineers don't work too long, otherwise they would exhaust themselves. There is so much that a human brain can take. It needs rest to be able to function properly and reach the zen of productivity. I know because I always do fine work after taking a long break at which time my brain is prepared to do anything that I throw at it.
I come from the future! It's 2024, Nothing has changed. TSMC FTW.
It's really cool to see an amazing Engineer who was involved in making of the real products of Intel to be the CEO of Intel ... finally a good CEO rather than just MBAs.... Intel will surely see a turnaround and regain its position again .
in 4-5 years later...
Time doesn't matter. There's no guarantee that TSMC will last forever.
@@centerfresh8472 its not about tsmc , its been handy to have a gen ahead fab for amd but what has setup their success is the core zen architecture which was designed from scratch to scale forseeing the multicore future we now have where intel's was not . zen 4 and 5 will crush intel for at least the next 5 or 6 years and thats a long long time for shareholders with weak hands to sit in 2nd place on a ceo with big dreams who isnt getting immediate results
This new guy talks a lot about hopes and dreams. Maybe too much than what he can make happen by 2025. 18A? Took them THIS long to start building a fab for 10nm that costs more than twice as much as TSMC with their 5nm. Lol.
@@centerfresh8472 intel has a better chance of falling than TSMC. Just look at how many customers they've got, how reliable and successful, and advancements they've got going on.
I learnt that for a technology company, Having an engineer CEO makes a great difference in product which I think Intel proved to be true
CEO: What potato do you use in our chips
Don't you mean AMD? AMD was on the verge of bankruptcy till Lisa Su, a engineer took control and now AMD is out performing Intel.
@@InDreamsYourMine but AMD's market share is far behind Intel. For gaming, I'd choose Intel any day.
@@main_tak_becus6689 Market share and sells to OEMS Intel is still ahead, but in terms of DIY, AMD is out performing Intel in sales.
@@main_tak_becus6689 AMD is better for gaming streamers for 2 years now. Intel made a bad call by not ordering from TSMC 4 years ago and now they are still paying the price.
The description of chip size shows some really big misunderstanding of circuit size by CNBC. The nanometer description describes the size of the circuit pathway inscribed on the chip and not the size of the chip. You can have really big chips at 2nm and really small chips that are 10nm. Really depends on the number of transistors and transistor size.
We need more chip manufacturing in the US.
Intel wants to surpass TSMC with $26 billion? They do know that TSMC is investing $100 billion over the next 3 years, right? CNBC reported on that, too.
Also, 18A by 2025? Translating from Intel Time, I'm guessing we'll see first small-scale products (probably a mobile CPU) by 2030.
TSMC needs more capacity for other partners intel will probably use most if it's capacity for itself 100B over next 3 years maybe but how much of that is R&D and how much is cost to setup new facilities
I'm pretty sure that $26 billion number is their r&d figures over the next two years. Their total investment is much more than that. Their going to spend $95 billion in the EU alone with more investment in the US in the future. Their new CEO is going to spend so much on r&d that their shareholders are worried their pockets will be affected. I really hope intel can catch up. It will be difficult but Americas tech leadership is at stake and Pat focusing more on long term gains by spending big on r&d instead of short term gains to please shareholders like his predecessors is already a good sign of things to come.
tsmc is bankrupting their owned country in debt vs us only spending 26 billion and intel is american....so just watch asian countries collapse by their debt and their people gonna riot to their government pretty soon now...china gonna see this a opportunity when that happen, not our concern when we got intel...they can keep their tsmc under water
@@user78405 if the US cant collapse under their current 30+ trillion debt, i think taiwan will be fine with just a few billion.
@@naveenbattula when a single asml machine costs 180million intel will need to sell to others as well. Such machines have a life expectancy of a few years. This means that these machines need to work 24/7 for the next 3 years with no stop to make the invest worth it.
Intel is not building the machines, they buy them from asml. Curently TSMC is a much better customer for ASML, the more you buy the better and more important customer you are.
The 100B Tsmc spends is for the next gen 3nm machines while the 26B intel spends are for the old 10nm and 7nm machines. Tsmc is already operating 5nm machines, months now.
"How big is the building?"
"20 football fields."
@Laura Brown
w h a t
The US will literally use anything but the metric system.
"2057 Cheeseburgers", "783 AK-47s", "23 cornfields"...you get my point.
@@donwong3577 lmao... dude! you have me howling haha
around 14++++++
Freedom measurements.
Kudos to Pat Gelsinger. It is exciting to see an actual Engineer, a true geek run Intel 👏👊
love to see this, let's make the US independent!
If intel actually manages to deliver 18A by 2025, then Pat will deserve so much praise. Catching up to competition and surpassing them in such a short time span is a Miricale ( IF it happens).
If anyone can pull it off, it's Pat.
bold words honestly.
while their direct competition in the CPU market (amd) is on 7nm that's just because a bigger fish (apple) is buying out all the even more advanced 5nm stock. and i believe tsmc already has started 3nm production, which should be hitting shelves next year for iphones.
if amd decided it wanted to pay a premium for those 3nm chips then intel would find itself in a terrible spot.
@@Extys intel needed Pat a LONG time ago. Id imagine intel wouldn't be in this mess to begine with if they didn't put incompetant CEOs.
SILICON CHIPS SHORTAGE ARE NOT ACCEPTABLE IN THIS 21 CENTURY.
@@Extys ROFL... the investors don't believe so!
I like how you can tell Intel would only do the story if they said nothing about AMD. "Our sales were down due to supply issues and PC Demand" *looks at AMD's earning sheets during same period* "Yeah I'm going to have to say your story didn't check out"
Ya, the moment they left AMD out when saying TSMC and Samsung are in the lead I knew this was not going to be unbiased reporting.
@@Aiyahhh AMD is a part of TSMC so...
@@siddhantgarodia3381 lmao not it is not. AMD is an independent company. It only contracts TSMC for all of its chips.
@@Aiyahhh this is chip manufacturing, amd buys their chips intel makes their own
AMD is fabless, uses TSMC as contract manufacturer. Intel has its own fab and that's what the premise of this news.
This is likely the best move for Intel. Had they decided to completely abandon manufacturing they'd likely eventually end up like IBM, or worse, Motorola!
This is the worst move. It would be a lot cheaper to teach Intel's employees Chinese, saves a lot of money and trouble.
CHINA OWNES MOTOROLA AND THE US MILITARY RADIO TECHNOLOGY FROM MOTOROLA! CHINA WILL BE ABLE TO USE COUNTERMEASURES ON ALL US MILITARY RADIOS MANUFACTURED BY MOTOROLA!!! NICE, SMART, DUMM & DUMMER!
Or Dell?
Where is Dell?
@@masteryoda394 Anyone who knows history knows not to bet against Intel.
@@jamescarter8311 They will recently build more semiconductor plants in Europe, so I think I was wrong there.
I am glad Intel has so much competition. Although I have been a fanboy since I was a kid, and still am today, it's good to see them get off their ass. They were never good at Nand memory storage,
Would love to see Intel make a comeback, especially after their designs falling behind those of AMDs, chips manufacturing in the US would also strengthen the supply chain
They will
@Solendore but your power consumption is ridiculous, of course you achieve more performance if you throw more power at it. Power efficiency is just as important as performance
@Solendore im an electrical engineering student and would love to work with you after hearing how passionate you are about your company
AMD is still slower than Intel.. for sure in top performance benchmarks. Apple m1 also is nothing at all good in benchmarks for power and video power.
The best is still nvidia and intel powered gaming PC, simple and fact if you research the famous benchmark called Port Royal Hall of Fame benchmarks...
Luumi is one of the youtubers who proves it with nitrogen cooling intel chips and nvidia for graphics.. its been the best and I build PC for 20 years, I know what I am talking about (aka you cannot correct the facts)
Alder lake cpus are crushing everything on the market. Will be interested in how AMD responds.
I hope intel is successful with their U.S. operations. We need this!
Agreed another fab with be highly beneficial
us labour culture will find semicon fab arent compatible
@@vandankholme2898 We have FAB here already guy, try to keep up
@@ageminiani : TSMC is not building the latest nodes in Arizona. wake the f up.
@@ageminiani nonsense.....
Great documentary on the current state of the chip market.
1:20 no.
They Fired all the engineers and this is what happened as a result.
YES THE ENGINEERS WERE DOING SOMETHING VALUE ADDED
*"When you've been standing on top for so long.. you forget to look down."*
- probably Intel
*"They'll never see us coming."*
- probably AMD
AMD buys its chips from TSM lol
@@davonwhite70 and now they’re getting more market share. Now Samsung and Sony are AMD’s partner. Lol.
I once proposed Intel buy up ARM, but they were focused on MIPS instead.
@@jum5238 yeah well nobody's perfect
@@jum5238 Amd Is already making arm chips with Samsung for future phones and Pc like apple did with newest Macbooks with M1 but Amd wants to make Exynos chips with rdna 2 similar performance as Rx6000 series if everything goes well
A few years back its how Samsung plan to catch Intel dominance. Intel used to be years ahead of competition. It started with their cost cutting, closing down plants to maximize profit while investing less in R&D.
I have a friend who used to work at one of the fabs in Chandler.
He said a lot of work fell behind because of toxic office politics that kept building up since the 2000s, and there's still a pretty strong Good Old Boys mentality among the management which hinders solving problems.
Problems got even worst since the pandemic, with people abusing policies and management just not giving a damn.
Toxic Work Politics and management problems happens at every workplace, but this semiconductor industry is so intense and fast pace, any small hiccup can be very costly in terms of money and delays.
It’s now Dec 2022. Still can’t see Intel beating TSMC & Samsung. Not even catching up. 😅
They haven't even finished constructing the new plants. You got to be careful with facts and time.
The Heart and Soul of Intel is back at the Helm. I look forward to seeing these factorys open up and for us to become more independent again. I hope this is not forgotten going forward from this point. Keep it up :)
Yes this. Independence is Gold. America needs to regain no. 1 spot in this sector. I joined this industry thanks in parts to Robert Noucd and Jack Kilby
Reverse globalization. Cheap foreign suppliers are great if they ship stuff to you. North Korea, Japan, and China all have one problem, they are all close to China, that wants to go to war to conquer everything in sight in the Western Pacific.
@@emmanueloluga9770Allright independence.. Fine! ASLM is a Dutch company. So my country the Netherlands should make chips themselves. Setting the chipmanufacturers of the world back a decade. Without the technology of ASLM Intel's plans fail immediately.
Never go full r3tard. Intel like usa is an israelie company. Usa does not make anything. Even their movies an internet an books an religions an anti religions an rulers are israelie. Im assuming the local bakeries an mc donalds aren't even run by them an making their food
@@Joey-ct8bm Well not how things work, Europe has been the world's factory when is comes to high tech factory machines whatever the end product those machines produce is never their business to produce. That's why ASML has never been into making chips it's just another world that they probably dont want to bother with not to mention atlist another company has come up with a similar machine hence in the near future there will be quite a number of players in that industry maybe not many but ASML won't dominate that industry forever.
running a AMD ryzen 5800x, but i am glad to see intel is getting back into the game lets go!
@@ramenlover1727 it is actually more logical if the CIA uses explosives to destroy tsmc when china gets too close. the united states will _not_ leave strategically important manufacturing like that at the hands of the Chinese. China wants to _capture_ it, so they can use it. the tsmc production capability is why they both, China and USA, want to go to Taiwan in the first place.
china has already very likely planted special forces all over near strategic targets in taiwan. frankly, i am not sure if the taiwanese even want to resist the chinese occupation that much, they've shown quite lackluster will in polls against defending possible invasion from china. most of them just don't care that much. they just see it as a bit different management, but nothing changing fundamentally. taiwanese already speak mandarin chinese as their main language. mandarin chinese has been the official language of taiwan since 1945, and is the most spoken language in the country. it's remarkably unchanged from the mainland variant of mandarin. they see the chinese people more closer to them ethnically and culturally than the white westerners, fundamentally. i think it might be those "russia annexing places that are already full of russians" type of fight, where even the military just gives up instantly their military bases, basically.
its the other countries, Australia, India, Japan, USA, Germany, Britain, etc. that are seemingly _far_ more willing to put up a fight against china.
That’s the spirit, Intel. You’re only 5 years behind the curve.
I thought this documentary was really well done. Hit all the key Intel historical notes, while giving the present challenges that Intel faces context. I worked there for 15 years, knew Andy Grove, and believe or not, when I was there, Pat Gelsinger was only two levels above me, and I saw him frequently. He is a tech geek engineer like me, and seems to be carefully redirecting the ship to sail into a new port, as Andy Grove did a few times…..
If I were a betting man, I'd have money on Intel getting back on top again.
Speaking as an Accountant, Engineers should always run these kinds of companies.
Smart money would be shorting Intel.
So glad to see a REAL engineer back in charge of INTEL. The worst choices to lead tech/engineering companies are hires from outside who are NOT engineers but from unrelated fields (e.g. Financial, Marketing, etc.) or even worse...."diversity" hires who are not engineers. Engineers can more easily understand business than businessmen can understand engineering. When I was in college becoming an electrical engineer the joke was that those who couldn't cut it as engineers went into "busyness".
Intel should skip 7nm and go for less than 5nm processors, that’s the only way they can catch up.
@@gregramsey9545 12th gen seems promising, and they do have a good plan with plenty of fabs coming, i say its a good time to buy now
@@gregramsey9545 gonna wait to get my div. Then bounce. Buying tsmc
Apple definitely called it’s announcement event “Unleashed” this year because they had to one up Intel’s “Accelerated” event.
...Never heard Intel had an event ...ever?
I worked in a few fabs, I appreciate every Intel CPU/SOC I use, I know how hard they are to make!
Great move ... realizing the "global economy" model works up to a point ... the point where the participants start exploiting their exclusive contribution.
12:39 TSMC is one of the most significant suppliers for Intel, this is very convincing that TSMC is only focus on Manufacturing the chips, and very trustworthy for their customers.
And a reason why China will take Taiwan rly soon. To have under their hand microprocesor factories.
@@kiroshki understood，the reason why TSMC can produce one of the most sophisticated chips today is manly because their suppliers trust TSMC，ASML, Applied Materials and TOK are key suppliers for TSMC，without these suppliers，China still can't produce most powerful chips even TSMC falls on their hands，because no high-tech company trusts China.
@@kiroshki that's irrelevant imo , China re-unification has been country agenda since second leader deng Xiaoping
@@cobaltblue2756 We Taiwanese are used to it. China has been making their war cries for over 70 years since 1949, the year they declared independence and founded their People's Republic of China.
@@cobaltblue2756 Re-unification? Taiwan has never been ruled by the People's Republic of China. And that's a fact.
I remember back when AMD released the K6-2 and it was starting to show up in Gateway and Dell machines. I thought Intel was in trouble, especially with the cost of the Intel chips being significantly higher. But AMD didnt end up taking over. Now here we are decades later and AMD has finally gotten its foot in the door to a point that Intel has to do all of this stuff in this video to compete. Interesting.
It is AMD's decision to go fabless -- outsource manufacturing & focus on design that really helped them surpassed Intel.
Intel too cocky to make new cpu. Every generation is a slight refresh and not really anything new. They deserve it, by the end of the day its GREED
@@billlam7756 like AMD was back in the day. The problem isn't Intel as a whole, but the fact that almost all managerial jobs were took other by purely financial guys. Bean counters like they are called by most engineers.
ALDER LAKE is here.
@@philippesoares1745 Supposedly, the new CEO is an engineer.
When I started working in the semiconductor industry in the '60's, integrated circuits were in their infancy,
Now the scenes inside these new fabs look like science fiction!
6 years ago Intel cut the heart out of techs and engineering Corp, with lay offs to meet investors demands for higher returns. It crippled PTD and the 10 Nm process. It was also age discrimination, with 90% over 45 years and 20+ years with the company. Now they need the employees and can find any....
The biggest issue with establishment entities is that they always fail to take chances and leaps. No one learned from Blackberries failures?
TSMC is light years ahead. This is not something they can just fix by throwing some money at it. TSMC has positioned itself much better for success
Not quite that simple. TSMC does not design their own chips, they only build chips that other companies designed or licensed. Intel does both (design and build). Additionally, Intel not only designs their own architecture, they also keep refining their own instruction set. These are highly complex processes and not easy to do. Second, TSMC is also highly reliant on other tech firms like ASML for components to build chips using the current EUV lithography process without which =
TSMC is a processor manufacturer. Intel’s competitors are Samsung, AMD, Nvidia, Qualcomm and Apple.
They are ahead but not light years.
@Nelson Swanberg The Game of chip wars is about to get all dirty again people! 🍷🇺🇸 vs 🇹🇼 vs 🇨🇳
Building the new foundry’s in Arizona keeps them off the coast a little during the war with China so they have a slightly better chance to continue pumping them out.
Chinese government tech investment budget was 1.5 TRILLION in 2020. For those keeping track, that's three years ago. America needs a course change, and FAST.
Bob Swan was the worst thing that happened to Intel. Gelsinger will bring Intel back to the front.
Wouldn’t have to do this if we hadn’t given up our chip dominance in the 90s due to lack of vision smh. Tech is now.. and tech is the future.
Yep. Intel was extremely anti-competitive in the 90: I think over $2b in anti-trust fines. Govt failed to reign it in and now is stuck with a second-rate fab.
@@ikjadoon bad governing and greedy....
SILICON CHIPS SHORTAGE ARE NOT ACCEPTABLE IN THIS 21 CENTURY.
@@jeevang7853 Sure I do. I am a tax paying citizen of the country giving Intel the tax brakes it so enjoys. If you had any intelligence you'd have understood what I mean by "We"
Intel’s manufacturing process was competitive and leading until about 2015 when they had trouble going from 14nm to 10nm. That was when TSMC surpassed them by going into 7nm and 5nm.
AMD also redesigned their chips around this time (The first Ryzen) so despite larger and sparser transistors, they were able to make a big boost from their old Excavator like of CPUs and be 80% competitive with Intel. Intel kept the old P6 architecture from 1998 going for as long as they could.
It would have been great if Intel didn’t laugh at AMD’s puzzle block strategy (CPU consisting of small does and connecting them together with infinity fabric) when they’re now using them too
Great to see Intel focused on being one of the world's leading the fab companies again.
Talking is cheap
One of... :|
I mean, good for them... they didn't go out of business.
@@_sparrowhawk They are the leader.
i work at this jobsite. Craziest job on planet earth. That dude who complains about it taking 5 years has not even the slightest clue how things work in the real world.
How we lost this space is beyond me even back then we all knew it was the future
Not American but was wondering how does this even happen or allowed to happen looking at the kind of money splashed in meaningless wars and readily available for the military complex. Infact with tech even manufacturing of basic stuff like clothing can be brought back to USA and mass produced at affordable rates to create an export market that can compete with cheap Chinese stuff, in the world where l come from anything from US is usually considered superior l don't know why they just dont see this enourmous market that will readily buy their stuff when priced fairly. With automation that is pretty doable, Europe has been doin it that's why family owned micro factories are the back bone of Germany legendary high tech manufacturing industry.
Because they were too selfish and thought they would stay at the top. Intel crushed every company in the beginning and had no competition until AMD and TSMC started scaling up
Short term and slight midterm Profit. But it was bad strategically. And bad for pure midterm profit in multiple times.
@@Elldubbieyou That's complete nonsense. Intel has simply been a consistent leader. They can price higher because they're a more trusted brand. AMD would certainly charge more if they could. AMD has had some wins over the decades, but have also made some very poor decisions that resulted in them no longer making their own chips. AMD and NVidia will also be screwed if China decides to invade Taiwan.
Good PR by Intel. One thing about Americans, they're patriotic so I'm not surprised that CNBC has done this PR piece for Intel.
Say PR again ^-^ lmfao
Half of this video was a bad rep for intel
Never knew stating facts is just patriotic stances. Even when their literal pieces of intel creating most modern pieces of a computer.
It does seem like a very strong pr copywriting… only time will tell how strong their product will be. But at this point they are super far behind
iterally
AMD didnt reverse engineer the CPU. they were contracted to MAKE the CPU for IBM. they were GIVEN the blueprints. they were PAID to make it for intel. to fill an order
That’s much later. Before they became a viable 2nd source for IBM, they reverse engineered intel chips and tried to sell the knock offs. When IBM needed a 2nd supplier, AMD was the only viable alternative due to being gaining experience by reverse engineering Intel chips.
@@jeevang7853 untill this week
@@green_block The US government required dual source, how quickly we forget.
The first AMD cpus where made from looking at images of an intel CPU and reversed engineered. "It was originally produced without license as a clone of the Intel 8080, reverse-engineered by photographing an early Intel chip and developing a schematic and logic diagrams from the images." The wikipedia page for the Am9080, a [reversed engineered] clone of the intel 8080.
This reporter got many things wrong. she obviously is out of her league
We need chips built in America 🇺🇸 ..
Watching these videos of extremely complex manufacturing plants makes me want to play Satisfactory again
The hilarious thing is Intel just released a cutting edge chip.
I want to see Intel succeed not just for nostalgia but bc its v scary that 95% of the worlds CPUs are made in one tiny, unrecognized country and disputed land. Absolutely terrifying what could happen if the global supply chain were massively affected by natural disasters and political turmoil
My dad learned how to program x86 assembler language from Pat Gelsinger's book. He has complete confidence in Pat
Very interesting, informative and timely. The CEO seems like a nice guy. I hope he is not, that he is a mean SOB who is not afraid to fire people who can't do the job.
I've been a champion of AMD since it was $2, and despised Intel for its anti-competitive practices, and stagnation of innovation. I've recently become a shareholder of Intel at $48.15 though. Because the tides are changing yet again. Something overlooked in this video are the Intel Dedicated GPU's being released Q1 2022. Whether they are competitive 1 to 1 with AMD or Nvidia GPUs will not even matter, because the supply and demand of GPUs is so screwed up. They will all sell out 100%.
I agree for the long haul intel could make a comeback but question remains, whether its just going to be a "second best tsmc".
Well, there is a big difference in the fact that Intel designs & constructs it's own chips too, but yeah, any investment any of these companies makes is going to pay tenfold in only a few years. They're basically printing money.
Bruh you got AMD for $2? Damn that some serious diamond hands you have there
Me too;)
Just simple. No way intel will go out of business just like AMD.
Someday some point it will come back.
Both AMD and intel are too important to fall. USA government won’t let them die.
Too bad the U.S.A. has learned to place profit over people. Where’s the patriotism and loyalty? Let’s Go Intel!
Apple: *removes Intel chips*
Intel: LOL who even buys macs
Apple: *Makes M1 Pro/Max*
Intel: Apple pls
Funny story but at no point in the last 10 years did Intel laugh at anything.
@@_sparrowhawk I guess under that rock you didn't see all the comments Intel made about Apple
Intel is true though. Majority of the people outside US don't use macs
Just give it a few more years for x86 programs to be fully compatible with Apple silicon
We need Intel to be a competitor. Hope they succeed. Remember folks less competition means less innovation and less efficiency improvements.
what competition threes only 3 companies to choose from. 2 realistically speaking since apparently Intel has been irrelevant for the past 10 years.
Yes. It is good to see engineers running companies that were originally created by them . Who knows better and have more common sense about management a company that the ones who understand what they do and what they need to succeed.
Half true, Guillevem.
Ford, a brilliant mechanic with at least three of the greatest engineers of the century on his side, was beaten by Sloan, the genius of marketing and organization, who put General Motors together. (Sloan then managed to lose most of his own personal fortune in an ill-advised attempt to "correct" what he sw as the market's underappreciation of his genius: good at management does not necessarily mean good at financial speculation...)
@@TheDavidlloydjoneslol look at Ford and GM today
Intel, I was learning about computer architecture with textbooks about your processors! Just out of nostalgia, I hope you succeed and get more chapters in textbooks ;)
They got complacent while they sat atop their throne in the CPU world. AMD finally coming back swinging with the Ryzen CPU line forced them to finally start innovating again because they were no longer alone at the top.
It's not that they got complacent, it's more that they expended billions on crazy technologies that never panned out and they thought they could take big risks on cutting edge technology due to their superiority. This didn't last long
@@satyampatel491 No they got complacent. Stock buybacks and dividend increases were beginning to become a focus as R and D actually decreased not just as a percentage basis but on a dollar basis during the previous CEO's tenure
They were milking the market, and it was so obvious. It's why i didn't bother upgrading my CPU for more then 5 years at a time. Intel is a epitome of shitbaggery greedy capitalists. Capitalise no matter what. Glad AMD overtook them
Take it from me, one of the biggest fanboys of Intel. Been building computers since 1995 and Intel was my King. Athlon XP was the first real big threat to Intel imo but Ryzen is where AMD won.
AMD was smart for handing over chip manufacturing to TSMC and instead focused on chip design. Intel should copy AMD in-order to compete.
Intel used to be crazy expensive until AMD put them in their place.
That is why we can't lose Intel either.
TSMC's monopoly of the equipment to make chips is a perfect example of how the ideas of copyright stifle innovation and competition.
Come up with your own ideas 💡
Slips happen when you still continue to load leadership with MBA consultants.
As someone who was deciding to invest into Intel or TSMC 2 years ago the choice was too easy.TSMC is the 10th largest company in the world, way better leadership and invest heavily into R&D.Intels five years behind at best and TSMC has too much market share.The only thing that would hurt them is natural disaster or China conflict
Amd was 5 years behind and then released ryzen to kick intels ass, intel just made patrick gehsinger CEO (hes an actual engineer) and are pouring billions into rhis operation im sure theyll be fine
@@brianvalencia9001 I’m saying you’re wrong.They don’t control the most complicated part of the semiconductor ecosystem and TSMC is as close to a monopoly as it gets.Plus Intel doesn’t even come close to the 100 billion theyre investing the next three years.Its over for Intel once TSMC starts producing their 3nm chips
@@brianvalencia9001 yes, they'll be fine but won't be able to compete with TSMC any time soon and that is what will give AMD the edge. Just have a look at Alder Lake's (10nm) power budget required to compete AMD's Zen 3 (7nm) which has been out for a year.
Yep, makes sense why China wants to own Taiwan so badly now
@@chrismayher617 dear oh dear oh dear...do you really think that a few nm is going to be the difference at this level ? REALLY ? I guarantee you it wont be, chip logic will be, and Intel has always been the best at it
The most important thing is to make sure you have the right balance between your relationship with your employees and the employees can talk to each other as a whole.
The main reason for Intel's success was not great tech. They had a legal monopoly on the x86 types of chip which ran the dominant operating system, Windows and related applications. That allowed them to price high, fund the best fabs, and keep pushing the x86 architecture to higher performance. The monopoly position gave them the profits to invest in superb manufacturing. They failed in memory. They failed in phones. They fell behind in graphics. This let other companies fund contract fabs like TSMC, which could build the same or better chips for others. Intel's fab is captive, so its chip cost will never be cheap because it relies on only one product line/customer to pay for the fab and can't share cost for the fab. They can catch up, but to drive cost down they must be a foundry too, as Samsung has learned and is doing. Monopolies are gravy trains, but they seldom last forever in technology.
Technology in Everyday Life, Cannot without.
Apple and AMD finally awakened the beast. Question is has it been awakened to be slain or to give reckoning? Time will tell.
Just as 65 motors driven from one chipset of controlling the process of creating a smooth assembly system that thinks sees and feel everything around it is shocking and wonderful at the same time.
Comment on foundry:
Intel has trouble manufacturing its own non-cpu chips, which is not as highly regulated design
So it’s process for CPU and chipset are 18 months apart.
Foundry is a SERVICE business more than technology. How do you use one process to enable different design styles from Qualcomm, apple, nVidia, AMD is very complicated and that’s why tsmc is so good in foundry business
As an IDM, Samsung and Intel can use its own design to quickly tune the process but when goes to others design, you will spend 2x (at this stage, might not even be RD resource) to tune the process
This is also why IBM failed in its foundry business ended up sold fabs to Global foundry
If this was 2009, we would believe you
credit where credit is due, at least they delivered performance with alder lake.
sure it still runs pretty hot but cant win them all.
@@BattousaiHBr amd zen4 is around the corner!
@@darshan5726 zen4 isn't anywhere close to shipping, and i didn't hear many great things about it... seems like amd's efforts have been placed in zen5.
@@BattousaiHBr yeah but they consume more power and requires better cooling. but i agree its better this year i am hoping for good alder lake cpu for laptop amd not available because no stock, intel is available .
@@shivsankermondal yep.
zen5 seems like it'll use the same efficiency cores architecture as alder lake, and it doesn't seem like windows' scheduler knows how to handle these well yet.
Hopefully they learn to accurately measure nanometers before they open these plants. That said, this would be awesome.
@anonymous one Well, the measurement itself isn't outdated, but yeah, I know what you mean. lol
@@x8jason8x doesn’t it represent the preference you would of had if it was actually 3nm, also Intel 10 nm will just be called 7 and after intel 4 they going angstrom
Spent 60bn on buybacks and the stock price is at decade lows lol. Lousy management.
1:59 these 20 yr old "senior" producers is all you need to know about CNBC
Get more US government subsidies and special favours!!!
Intel has stopped being the most innovative chip design(Nvidia, AMD) or chip fabrication (TSMC, Samsung) company a long time ago.
Correct. Intel uses TSMC as their foundry. Trouble is, China wants to eat Taiwan.
@@NeverTalkToCops1 exactly.
Subsidies are government intrusion into the free market.
See they all went fabless when the economy was good, because having your own fab wasn't paying. Now they're learning the hard way when the economy is bumpy and supply/demand issues arise.
Huge investment in Fab infrastructure is only a half of the recipe, the other half is dedicated, hard-working engineers with right skill sets.
I see my old electronic motor controllers in cnc looking huge compared toe to the newer scooters that my nephew has in his transportation
Companies need to take note. Get rid of MBA CEOs and put the engineers in the driver's seat. Intel has a bright future with this guy at the wheel.
So damn TRUE! We need nerds with imagination, not cheaters and scammers to run these companies.
Hope it works for them, a lot of people naturally supported underdogs when Intel was king, so they stayed with hostility toward it even now,
But overall the best outcome for consumers is that all companies do great and have to work very hard for to have their products bought by consumers,
if it would happen that Intel fails as some predicted that would be terrible for consumers
Intel engaged in a lot of illegal and anti-competitive business practices aimed at killing of AMD so its not just the underdog thing.
@@VantaCanadaBlack yea but that is not the point, point is that AMD was successful in overcoming that from Intel, Apple was successful in abandoning Intel and going forward with their own chips, so if Intel doesn’t have any success soon, they might be pushed out of market, then AMD would be monopoly in PC segment, which would not be good, what made AMD good was their desire to outcompete Intel, but without Intel they would inevitably become new Intel of pre Ryzen era
@@Ratimir101 I'd be ok with that xD
@@Atixtasy Why?
@@Atixtasy No you wouldn’t. No one would, which is why Intel failed at that attempt
Sounds like Intel is being forced to get competitive. For 30 years I saw them milk the PC CPU market. Finally AMD caught them and forced their hand. Also, smart phone and ARM chips took a big bite out of their profits. Now, they are trying to manufacture for others. Looks like a great sophisticated business scrambling to compete and stay relevant. Wish you great success intel. Get out on the field and score...
Conspicuously absent from this video -
• Wafer size (200mm vice 300mm)
• Usable quality yield
I worked for Intel from 2006-2009 in a managerial position as an outsider. The place was way too political and some/many people are rather nasty to one another. There was just the wrong vibe. I was hoping BK can turn this ship around but Intel fired BK. I sincerely hope things work out for Intel.
I know that 'vibe'. As a robotics consultant (ret) I had to advise a CEO to open a new building with new people if they wanted to get the vibe and energy going with automation(in contrast to employees sabotaging robots that were "going to take our jobs". That productivity increase was needed revenue, to keep their payroll going, LoL...sardonically
As an investor, I think INTC, F, and GM stocks are all showing signs that having old factories and staff are a liability, compared to a fresh start with the latest and most enthusiastic people and equipment per square foot. (while capital is cheap)
That's true to all corporate jobs.
BK OK'ed $500 million for the last olympics which had under half the viewership of the previous Olympics. He also wasted money on drones and and that Fossil watch that eventually had to be bought back after it caught on fire. That money could have gone to purchase the tooling needed to maintain tech leadership. At least now, I think Intel has the best CEO they have had since Grove.
ah yep.. this was what I was looking for. People problem. Always is. Endless meetings about nothing. Endless leaders tripping over each other to shout loudest. Little regard for the people that deliver or for the customer.
Their Risc-V project may give a hail marry pass but otherwise, they are a level B company.
Intel has been way to relaxed. Even as AMD and Samsung surpassed them in almost every way, Intel did nothing. Competition is good, but Intel has a long way to go to actually improve.
They thought they owned the world, and that mindset is a hard one to break.
Apple really slapped them in their face 😂
So this doc was made in 2021 and these corporations were already in the process of building fabs in the US; so someone please tell me why, through the Chips Act, there was a need to, not loan, but gift, $52 billion to microchip corporations? They were already building these fabs in the US before the Chips Act was passed. Now, if someone is going to claim the Act was to encourage even more chip manufacturing here in the US, why couldn't that stimulus be in the form of either loans or equity purchases as was the case with the 2008 TARP legislation? The Chips Act is a total giveaway from the pockets of the working class plebs and into the hands of megacap corporations and their billionaire executives.
No way, intel can't beat TSMC now.
All I see is more competition, love it, the last thing I want is any dominant player in this industry.
I admit, I'm an Intel fanboi. But I want this "onshoring" movement to succeed not only for the company, but for the economy and SECURITY of this country. Best of luck, Intel.
I’m not a fanboi, but I agree. China’s becoming more aggressive on taking over Taiwan. Given the track-record, that’s not a good sign for TSMC and US. Long live Intel.
Bingo
All free countries, are at risk. China is, unofficially, at war with us.
@@fruitbouquet5479 , China has been planning to take over Taiwan since 1949. Don't let the propaganda get to you.
I am with you on that one. Ensuring you have a domestic supply of chips that are crucial to run your country is always a good thing. Too bad it took the US nearly 50 years to come to grips with. Till now chip production has been offshored for profit margins with no thought being given to the average US worker. No thought at all was given. Profit and payouts to this day still largely control where things are made. The US does not want to pay its workers. And now it is paying the price of such policy. China controls a very large chunk of the rare metals market. Good luck making chips is what i say. You will have to start coming up with your own supply even if it means melting old chips down.
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From my own point of view, you need to invest smartly if you need the good things of life. so far, i've made over $355k in raw profits from just q4 of the market from my diversified portfolio strategy and i believe anyone can do it if you have the right strategy. Mutual funds takes long time, but investing smartly is the key for short term. Most of us tends to pay more attention to the shiniest position in the market to the cost of proper diversification.
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I'm sure Intel will have advances in chip manufacturing, but saying that they will surpass TSMC, Samsung, and SK in 2025 is delusional. Intel can't even surpass them in 7nm chips by the end of 2022. Samsung and SK are already shipping 3nm chips! TSMC will have 3nm chips by 2023. You can't get this technology by just building foundries and buying machines. You need top notch engineers with decades working on high-tech chip manufacturing. You will need to snatch high level engineers from TSMC, Samsung, and SK. And as far as I know TSMC, Samsung, and SK's top notch engineers have non-competition agreements for at least two years. Also, TSMC, Samsung, and SK will never manufacture their highest-tech chipsets in the US. They will keep that technology at home. That's like Verizon and AT&T saying they will have 7G networks in 2025, when they barely have real 5G networks 😂
This completely leaves out that the nomenclature for processes differs drastically between companies. Intel 7 and TSMC 5 are the same transistor size. Given the big deal you made about the process differences between the companies and Intel's rebranding of process nodes, this is a pretty important detail...
Intel new nomanclature is more reflective of industry standards ..this was the right move so amateurs like in this video and hedge fund managers know where to put the money
You have a massive typo. Intel 7 is significantly behind TSMC N5. By transistor density alone, TSMC N5 is 170 MTr/mm2 and Intel 7 is 101 MTr/mm2. Over 50% more dense using the tightest libraries…. You meant a Intel 7 and TSMC N7….
@@ikjadoon intel 7(previously 10nm) is tsmc7. Tsmc 5 will be outpaced by intel4.
So tsmc is basically a year ahead as of now(if intel keeps to scehdule)
IMO if intel4 is sucessful then intel is back otherwise it will be bad news
Intel 4 was suppose to come q12022 but is now delayed
If they can lauch it 2022 then game on otherwise AMD/tsmc will take more share
@@ziaulislam87 Just what I wrote. The parent comment is wildly wrong. Nobody is anywhere near shipping TSMC N5 densities, which has been on the market for 12+ months!
SILICON CHIPS SHORTAGE ARE NOT ACCEPTABLE IN THIS 21 CENTURY.
They make it sound like intel just needs to build new plants. Pretty sure you need to be able to make the next generation of chips by the time they are done.
With more High Tech , you have more high products rejections , more high pressure condition , more high manpower changeovers & more high mental health problems. High investment with high expenditures. Except no high pay salary to compensate manpower . Hope it wouldn't come to the high end of the road sooner than we expected.
14:41 if i remember correctly the latest mars rover used a 2005-era processor.