Intel CPU's may become a thing of the past as a market leader

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EnochLight
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Post 02 Jan 2021

The recent Reason benchmarking thread showcasing some of the new AMD cpu's that have dominated desktop performance the past couple of years made me re-evaluate my choice to build another Intel machine going forward. I saw this article on Ars Tech recently, and things are looking pretty grim for Intel. One of the lines from the article really brings this home. Basically, Intel has:
..lost many of its best chip designers while the ones that remained are becoming increasingly demoralized...
AMD has literally been crushing Intel in the desktop performance realm for almost 2 years. Are we on the verge of Intel never recovering? Not sure if this shake up will help Intel or not. While it may keep the company a viable entity, will they ever regain the performance crown when their best chip designers have bailed and the ones who are still there are demoralized?

Check out this article:

https://arstechnica.com/gadgets/2020/12 ... facturing/
Activist hedge fund advises Intel to outsource CPU manufacturing

Activist hedge fund Third Point has taken a stake of nearly $1 billion in Intel and called on the chipmaker to consider shedding its manufacturing operations, throwing a core part of its strategy into question.

The firm with $15 billion in assets run by Daniel Loeb made a number of demands in a letter sent to Intel’s chairman Omar Ishrak on Tuesday and seen by the Financial Times.

In the letter, Mr Loeb said that Intel was “once the gold standard for innovative microprocessor manufacturing” but had fallen behind manufacturing competitors in East Asia such as TSMC and Samsung.

His intervention comes as Intel faces a critical decision over its future as a leading-edge manufacturer of semiconductors—a position it has held for decades, and the source of its dominance in the PC era.

Bob Swan, its chief executive, has indicated that he will decide early next year whether Intel should outsource a significant part of its most advanced manufacturing, or even get out of leading-edge production altogether, after a series of slips.

The company in July revealed it had hit a new hurdle in trying to move to the next generation of manufacturing technology, where the features on chips are reduced to a width of only 7 nanometres.

That compounded a series of missteps that helped cement the lead seized by TSMC, the Taiwanese chip company that manufacturers semiconductors on behalf of many of the world’s biggest chip designers, including Nvidia, Qualcomm and AMD.

Intel has lost some $60 billion in market value over the past year, Mr Loeb pointed out, as he took aim at the chipmaker’s corporate governance.

“We cannot fathom how the boards who presided over Intel’s decline could have permitted management to fritter away the company’s leading market position while simultaneously rewarding them handsomely with extravagant compensation packages,” Mr Loeb wrote.

The hedge fund said it was particularly concerned at the loss of talent at Intel, saying the company had lost many of its best chip designers while the ones that remained “are becoming increasingly demoralized.”

Mr Loeb said Intel should hire investment advisers to determine whether the company should both design and manufacture chips as well as consider divesting failed acquisitions, though the letter did not point to any specific examples.

“Intel welcomes input from all investors regarding enhanced shareholder value,” the company said in a statement. “In that spirit, we look forward to engaging with Third Point on their ideas towards that goal.”

Ending its efforts to physically make the most advanced semiconductors would mark a turning point in Intel’s fortunes, while also leaving the US without a top chip manufacturer.

Mr Loeb called its difficulties a “critical concern” that could have broader implications on America’s national security if the US was forced to rely on companies located in “geopolitically unstable” regions to “power everything from PCs to data centers to critical infrastructure and more.”

Intel shares rose more than 5 percent on news of Mr Loeb’s letter, which was first reported by Reuters.
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bxbrkrz
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Post 02 Jan 2021

You could merge your thread with mine viewtopic.php?f=11&t=7512392

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joeyluck
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Post 02 Jan 2021

IMO the competition always moves in waves. There was Intel and then there was IBM's PowerPC, and then a shift back to Intel, and there's AMD, and now Apple's M1... I think Apple's processors will define the future for most of the near future. And then Intel will maybe make a comeback at some point.

If Intel didn't have fierce competition, they wouldn't have as much reason to have a sense of urgency to develop better processors. They wouldn't have to innovate. All companies have ups and downs and shakeups. Apple being a very good example itself. Being down doesn't mean you're out. Being an Apple user myself, I'm less concerned about Intel's success in the near future, but I would like to see them succeed so that the processor world continues to be as competitive as possible, even if there are more players in the game now.

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bxbrkrz
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Post 02 Jan 2021

Intel has yet to go through its full Phoenix Cycle.

No escape.

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miscend
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Post 02 Jan 2021

There was a time when AMD was ahead of Intel for a few years. I think it was the Athlon 64? But Intel's marketshare is so huge and they have forged long lasting relationships with many loyal customers. I don't see them losing the market leader crown for some time.
Last edited by miscend on 02 Jan 2021, edited 1 time in total.

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EnochLight
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Post 02 Jan 2021

bxbrkrz wrote:
02 Jan 2021
You could merge your thread with mine viewtopic.php?f=11&t=7512392
That thread is from 2019 and unrelated to the article that just came out. Thanks though!
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bxbrkrz
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Post 02 Jan 2021

EnochLight wrote:
02 Jan 2021
bxbrkrz wrote:
02 Jan 2021
You could merge your thread with mine viewtopic.php?f=11&t=7512392
That thread is from 2019 and unrelated to the article that just came out. Thanks though!
I see. Thanks to you too.

EdGrip
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Post 03 Jan 2021

I'm finding it hard to look past the M1, which is a first iteration! It must surely be very bad news for Intel - unless Intel have been researching avenues that involve similar big SOC architecture changes, which I don't expect they have.

WarStar
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Post 03 Jan 2021

I just bought a new laptop, my old machine is a Win 7 from 2012 so an update was definitely needed... I spent a good chunk on my old laptop, it's a Asus ROG set up.. old i7 w/ 12gb ram and a crap ton of hds but no ssd.. anyhow, shopped and researched and took my time and settled on a Ryzen 7 4800 instead of a new i7 with the primary reason being price $, I stuck to a budget of $1000.. I pulled the trigger on another Asus this time the TUF model and man I'm really happy.. I did alot of looking into single core performance and felt like I was wrapping my head around that but since buying a laptop I just couldn't find a Intel configuration that would work for the features I wanted, one being a USB 2 port cuz I still use a Balance interface lol.. long story short this Asus Ryzen is a octocore, 6gb grfx card, with 500gb ssd, with 16gb ram with an awesome upgrade ability for 64g!! All for $990..!! And Balance works flawlessly too which I am so happy cuz I wasn't really ready to fork over more $$..

It's like a whole new world for me.. just updated from Reason 7 and finally using some vst's that I've always wanted to use with reason..

(Side note)

Funny story too about my old machine.. I was on a deadline for a remix I was doing for a friend and needed it sent off to the label the Monday after Thanksgiving.. I was literally making some final mix stuff and some minor additions, etc.. my laptop being 8yrs old had been hanging up on me at boot and so I'd just have to unplug it and pop the battery out and then restart and it would be ok usually.. but I had been having this feeling like it was going to take a shit on me at anytime.. which a few days before deadline it sure as hell did lol it hung up on boot, did my usual, and it restarted and then all my audio became mono!!! Like everything..!! Did all the trouble shooting to determine maybe what's wrong but it didn't matter everything was in mono.. so tried a few more reboots and one time stereo started working again and then quickly stopped.. so I rebooted again, now Corrupt Disk...!! Luckily backed up those sessions I was working on so was able to get those back up and running in reason but the mono issue remained...!! So... I actually mixed with some best guesses, then copy wav to my cell phone then I would be able to check in stereo lol This was a nightmare to say the least and it sucks cuz the final mix was not anywhere where I wanted it to be but had to role with it at this point cuz it needed to go to master...

Anyhow... That's why I was in the market for a new laptop lol

dezma
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Post 04 Jan 2021

They crush the desktop market and I don't see any reason to still choose intel but I think 2021 is going to be very important to gain market share on the laptop and server segment which are still dominated by intel and far more important revenue wise. For us consumers it's happy times after all those years of high prices and low innovation. Let's hope the gpu market with their ridiculous prices has the same evolution.

My i7 replacement will be a ryzen 9 5900 :) expected delivery any day now

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