Intel and the Danger of Integration
Intel and the Danger of Integration
Published on June 25, 2018 at 02:40PM
Once the Valley's most important company, Intel is increasingly finding itself in a bad position, in part because of its major bet on integration model. Ben Thompson, writing for Stratechery: When Krzanich was appointed CEO in 2013 it was already clear that arguably the most important company in Silicon Valley's history was in trouble: PCs, long Intel's chief money-maker, were in decline, leaving the company ever more reliant on the sale of high-end chips to data centers; Intel had effectively zero presence in mobile, the industry's other major growth area. [...] Ben Bajarin wrote last week in Intel's Moment of Truth. As Bajarin notes, 7nm for TSMC (or Samsung or Global Foundries) isn't necessarily better than Intel's 10nm; chip-labeling isn't what it used to be. The problem is that Intel's 10nm process isn't close to shipping at volume, and the competition's 7nm processes are. Intel is behind, and its insistence on integration bears a large part of the blame. The first major miss [for Intel] was mobile: instead of simply manufacturing ARM chips for the iPhone the company presumed it could win by leveraging its manufacturing to create a more-efficient x86 chip; it was a decision that evinced too much knowledge of Intel's margins and not nearly enough reflection on the importance of the integration between DOS/Windows and x86. Intel took the same mistaken approach to non general-purpose processors, particularly graphics: the company's Larrabee architecture was a graphics chip based on -- you guessed it -- x86; it was predicated on leveraging Intel's integration, instead of actually meeting a market need. Once the project predictably failed Intel limped along with graphics that were barely passable for general purpose displays, and worthless for all of the new use cases that were emerging. The latest crisis, though, is in design: AMD is genuinely innovating with its Ryzen processors (manufactured by both GlobalFoundries and TSMC), while Intel is still selling varations on Skylake, a three year-old design.
Hope you like this please comment your view and share to your friends thanks for visiting bye guys meet you in next post
Published on June 25, 2018 at 02:40PM
Once the Valley's most important company, Intel is increasingly finding itself in a bad position, in part because of its major bet on integration model. Ben Thompson, writing for Stratechery: When Krzanich was appointed CEO in 2013 it was already clear that arguably the most important company in Silicon Valley's history was in trouble: PCs, long Intel's chief money-maker, were in decline, leaving the company ever more reliant on the sale of high-end chips to data centers; Intel had effectively zero presence in mobile, the industry's other major growth area. [...] Ben Bajarin wrote last week in Intel's Moment of Truth. As Bajarin notes, 7nm for TSMC (or Samsung or Global Foundries) isn't necessarily better than Intel's 10nm; chip-labeling isn't what it used to be. The problem is that Intel's 10nm process isn't close to shipping at volume, and the competition's 7nm processes are. Intel is behind, and its insistence on integration bears a large part of the blame. The first major miss [for Intel] was mobile: instead of simply manufacturing ARM chips for the iPhone the company presumed it could win by leveraging its manufacturing to create a more-efficient x86 chip; it was a decision that evinced too much knowledge of Intel's margins and not nearly enough reflection on the importance of the integration between DOS/Windows and x86. Intel took the same mistaken approach to non general-purpose processors, particularly graphics: the company's Larrabee architecture was a graphics chip based on -- you guessed it -- x86; it was predicated on leveraging Intel's integration, instead of actually meeting a market need. Once the project predictably failed Intel limped along with graphics that were barely passable for general purpose displays, and worthless for all of the new use cases that were emerging. The latest crisis, though, is in design: AMD is genuinely innovating with its Ryzen processors (manufactured by both GlobalFoundries and TSMC), while Intel is still selling varations on Skylake, a three year-old design.
Read more of this story at Slashdot.
Hope you like this please comment your view and share to your friends thanks for visiting bye guys meet you in next post
Intel and the Danger of Integration
![Intel and the Danger of Integration]()
Reviewed by Kartik
on
June 25, 2018
Rating:
No comments: