Depends how this plays out and if more start to fail . I wouldn't feel confident selling one
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Intel has a Pretty Big Problem..
- Thread starter Purgatory
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Depends how this plays out and if more start to fail . I wouldn't feel confident selling one
Yes, the initial minimal news items implied far far lower failure rates. If those had been true, then Alderon Games would have to serial lottery winners, or - since this bad luck - serial get hit by lightning 'ers.
Soldato
It sounds bad, hopefully Intel can deal with it in a way that doesn't ruin the market for everyone. They're on a tightrope here.
Soldato
It's the reputational damage that will be the killer. If they have to start recalls then the mind share will be heavily diminished and server companies won't trust them any more.
If they start losing the server market then they are screwed long term.
Associate
The brand damage can be somewhat mitigated by good handling of the situation; admit the issue and promise to fix it. All defective desktop and server CPUs will be replaced with working models, and laptops will be recalled and replaced. But the financial cost of that would be enormous, possibly more than Intel can meet.
But probably more prominent in the mind of Intel's management is what a recall of that size would do to the share price, which is already depressed. Intel's market cap is half of AMD's. If the price sinks further Intel will start to look like a tasty takeover target.
Caporegime
AMD just bought Silo for $650ml (cash).
AMD plans to acquire Silo AI in $665 million deal
Advanced Micro Devices (AMD) is getting a lift following news of the semiconductor maker's plans to acquire Finnish artificial intelligence company Silo AI. Josh Lipton and Julie Hyman discuss AMD's move to further boost its position in the AI landscape. For more expert insight and the latest...
Caporegime
AMD just bought Silo for $650ml (cash).
I very doubt if they woild be intereted in Intel (especially with all thier debt). Who would.
AMD plans to acquire Silo AI in $665 million deal
Advanced Micro Devices (AMD) is getting a lift following news of the semiconductor maker's plans to acquire Finnish artificial intelligence company Silo AI. Josh Lipton and Julie Hyman discuss AMD's move to further boost its position in the AI landscape. For more expert insight and the latest...finance.yahoo.com
Anti Trust wouldn't allow it anyway....
Would be interesting to know what they are doing to trip it as no one else I know who is doing stuff with Unreal Engine is seeing anything like that level of impact.
Associate
That's probably what will save Intel from a takeover, any potential buyer would need to satisfy anti-trust and US security concerns. Although a lot of that goes away if the financial impact of a recall forces Intel into bankruptcy or insolvency, which is not impossible in the worst case scenario where all of the 13th and 14th gen chips are affected. The company would probably be broken up and sold off piecemeal.
Soldato
Going forwards it will be interesting to see how this effects on 2nd hand valves of these chips
Associate
Intel has already been cut in 2. They have split the Foundry business off. It's been in the brown stuff for quite some time. Way before this current issue.
Semiconductor Manufacturing Company for the AI Era
See how Intel is evolving semiconductor manufacturing to deliver a systems foundry for the AI era.
www.intel.com
Intel's been in free fall for years, and such behemoths are always too slow to meaningfully change. Looks like they will keep going down. Their only saving grace is that they're too important to the US to let burn-out completely.
For me this incident just reinforces my usual scepticism of the decisions these companies make that they then pass off as "it's safe, just trust us bro", this includes when AMD let the CPUs just stay at 95° C, or Nvidia with Ampere (or even more clearly with the 4090 power connector) etc. the list is endless. Luckily I have enough knowledge to see it & avoid it, but most people just gonna have to take it on the chin, and worse - the companies themselves won't even suffer from it, the opposite.
*Future voice* it’s an evil world we live in
For me this incident just reinforces my usual scepticism of the decisions these companies make that they then pass off as "it's safe, just trust us bro", this includes when AMD let the CPUs just stay at 95° C, or Nvidia with Ampere (or even more clearly with the 4090 power connector) etc. the list is endless. Luckily I have enough knowledge to see it & avoid it, but most people just gonna have to take it on the chin, and worse - the companies themselves won't even suffer from it, the opposite.
*Future voice* it’s an evil world we live in
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Associate
Summary plus the memes!
Superficially that business is not doing much better either, lost $7 billion in 2023, $2.5 billion in Q1 2024.Intel has already been cut in 2. They have split the Foundry business off. It's been in the brown stuff for quite some time. Way before this current issue.
Semiconductor Manufacturing Company for the AI Era
See how Intel is evolving semiconductor manufacturing to deliver a systems foundry for the AI era.
Caporegime
AMD at full pelt hasn't got enough wafer capacity to supply all of the market. This is why even with the Pentium 4 Intel overall still sold more CPUs. Even with these issues, Intel might sell less CPUs but they will still sell a significant amount.
Also Intel is a strategically important company for the US government, especially the fab part. This is why they have been in receipt of significant amounts of US government money as part of the CHIPS Act.
Also Intel is a strategically important company for the US government, especially the fab part. This is why they have been in receipt of significant amounts of US government money as part of the CHIPS Act.
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