Let’s begin with a brief recap of the current state of play at Intel. For starters, despite bold promises to regain technology leadership, it remains miles behind TSMC (Taiwan Semiconductor Manufacturing Company Limited) in chip manufacturing and indeed is increasingly relying on TSMC to manufacture its latest and future CPUs, such as Meteor lake, Lunar Lake and Arrow Lake.
Meanwhile, it’s losing market share to AMD in server CPUs, Qualcomm’s Snapdragon X Arm-based chips are a real threat in Intel’s largest consumer market, laptops, Intel’s Arc graphics effort has been a bit of a flop so far, and now its last two generations of desktop CPUs are badly broken.
Most recently, Intel announced some very poor financial results and decided it needed to fire another 15,000 employees after already trimming 5% of its workforce last year, a move that CEO Pat Gelsinger branded “some of the most consequential changes in our company’s history.”