Intel has a far bigger R&D budget than TSMC (~$13B vs ~$3B). Of course that's not directly comparable because Intel does more than just manufacturing, but their process woes are not caused by a lack of money.
But you are right that the expenses to advance chip scaling have become huge as these companies are approaching limits set by the laws of physics. In fact, to some extent they are pooling resources through suppliers like ASML (which is the sole vendor for leading edge chip scanners with EUV, which are exorbitantly expensive).
Their current business has bigger profit margins than pure-play foundries. It's not entirely clear to me what the financial story behind their announcement is. It looks like they want to capitalize on their scale and a trend in the industry to become less dependent on Asia for various reasons. They also have leading packaging technologies which would allow them to customize products for customers more easily.
Wouldn’t help them much. If you are an OEM, and you can buy an Intel-designed Arm chip that is the same as all your other competitors has and does not allow you to differentiate your product, or you can instead design your own Arm chip with custom circuits to support differentiating features (AI, security, whatever), which would you do?The path is clear. Intel should move to ARM, as Apple has done. There is no other way. The writing is on the wall!
But also a stark warning to the US industry.. history is repeating itself, American innovation ( with exceptions) has come to a stand still, my product is great and made with pride so I won’t change it , meanwhile others find ways to improve and do it cheaper, one reason why the Detroit auto industry is only a shell of its former self, American cars are mostly uninteresting and inferior to German amd Japanese competition , and therefore don’t sell abroad.... other industries need to wake up and realise being Made in the USA means jack all if you don’t keep up and continue to innovate.... that is the only way to sustain your company long term.If you’re American and you’re cheering against Intel I think you need to think more about this situation, and how eventually, that will impact you.
You want your country to be competitive in the global landscape. It is sad that Apple (an American company) has to look to a foreign country for its chip making needs, when there’s Intel still around just down the road.
it’s bad for the American industry ultimately if Intel were to die.
Competitive fun run through jargon interpretation = “our campaign backfired big time oops”
In an interview with Yahoo Finance today, Intel's newly appointed CEO Pat Gelsinger said that the ongoing competition between his company and Apple is "fun," while also saying he hopes to make amends with the Cupertino tech giant.
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Over the next two years, Apple will transition its Mac lineup away from Intel processors to its own Apple silicon chips. Apple is already well underway on the transition, having released three Mac computers based on its M1 SoC. Intel in response launched a marketing campaign last week to label Macs and M1 as inferior to Intel processors.
Despite the barrage of attacks, Gelsinger has indicated that he hopes to have Apple as a future customer. In his interview with Yahoo Finance, Gelsinger said that Apple relies too heavily on its current supplier, TSMC, for manufacturing Apple silicon and that Intel wants to offer its own services instead.Gelsinger attributed the recent tense competition with Apple to the fact that there's still room for innovation in the industry and the bonus that PC demand is the highest it's been in over a decade. Gelsinger went on to say there's "competitive fun going on with Apple and the Mac ecosystem."As part of its anti-Apple silicon marketing campaign, Intel recently hired former "I'm a Mac" actor Justin Long to star in a series of ads comparing M1 Macs to laptops powered by Intel processors. Additionally, Intel has turned to Twitter for the campaign and has created its own website to compare M1 Macs against PCs.
Article Link: Intel CEO Expands on Desire to Make Apple Silicon Chips, Touts 'Competitive Fun' With Apple
Idk, *I'm* having fun.And no, business competition is not fun. Businesses competition leads to job losses, profit losses, devalued shares, firings, and enclosures...there is nothing fun about that.
When Intel can reliably fab at 5nm or smaller, they can compete. Until then, they are yesterday's news, suitable for wrapping a dead fish. It is true that Apple does rely on Taiwan Semiconductor as a sole fab for their design and that might be a problem if there is a fire there like elsewhere.
In an interview with Yahoo Finance today, Intel's newly appointed CEO Pat Gelsinger said that the ongoing competition between his company and Apple is "fun," while also saying he hopes to make amends with the Cupertino tech giant.
![]()
Over the next two years, Apple will transition its Mac lineup away from Intel processors to its own Apple silicon chips. Apple is already well underway on the transition, having released three Mac computers based on its M1 SoC. Intel in response launched a marketing campaign last week to label Macs and M1 as inferior to Intel processors.
Despite the barrage of attacks, Gelsinger has indicated that he hopes to have Apple as a future customer. In his interview with Yahoo Finance, Gelsinger said that Apple relies too heavily on its current supplier, TSMC, for manufacturing Apple silicon and that Intel wants to offer its own services instead.Gelsinger attributed the recent tense competition with Apple to the fact that there's still room for innovation in the industry and the bonus that PC demand is the highest it's been in over a decade. Gelsinger went on to say there's "competitive fun going on with Apple and the Mac ecosystem."As part of its anti-Apple silicon marketing campaign, Intel recently hired former "I'm a Mac" actor Justin Long to star in a series of ads comparing M1 Macs to laptops powered by Intel processors. Additionally, Intel has turned to Twitter for the campaign and has created its own website to compare M1 Macs against PCs.
Article Link: Intel CEO Expands on Desire to Make Apple Silicon Chips, Touts 'Competitive Fun' With Apple
I don't recall that ever being the case, being able to magically fab chips at smaller design widths than at present. Somebody could make a design that should work at 2nm, but to actually make it work and with a decent yield is very different.Can you cite an example of this ever happening before in the process node industry?
If you’re American and you’re cheering against Intel I think you need to think more about this situation, and how eventually, that will impact you.
You want your country to be competitive in the global landscape. It is sad that Apple (an American company) has to look to a foreign country for its chip making needs, when there’s Intel still around just down the road.
it’s bad for the American industry ultimately if Intel were to die.
The usual protocol is to kiss the ring.How about a new commercial...
Gelsinger is escorted by two Koreans to the Apple Room at Apple Park. Tim Cook is there seated on a throne. Gelsinger kisses Tim's Apple Watch and says "Intel would like to make Chips for Apple".
It is not dying anytime soon. They have loads of cash. They do have to wise up, though. Intel’s leadership has been stuck for long. It just not Apple, AMD too is better in almost almost their whole processor offering.If you’re American and you’re cheering against Intel I think you need to think more about this situation, and how eventually, that will impact you.
You want your country to be competitive in the global landscape. It is sad that Apple (an American company) has to look to a foreign country for its chip making needs, when there’s Intel still around just down the road.
it’s bad for the American industry ultimately if Intel were to die.
A trillion dollar company like Apple always has choices unlike Intel who seem to be on the way to oblivion.My guess is that I dont think Apple will have a choice. It is only a matter of time Apple uses Intel as Fabs if they still want certain US market.
It is the same reason why Qualcomm is immediately on the list working with Intel Fabs.
Didn't Intel get a huge technology boost when they bought a company from Israel?If you’re American and you’re cheering against Intel I think you need to think more about this situation, and how eventually, that will impact you.
You want your country to be competitive in the global landscape. It is sad that Apple (an American company) has to look to a foreign country for its chip making needs, when there’s Intel still around just down the road.
it’s bad for the American industry ultimately if Intel were to die.
Apple does not need Intel and more and more computer manufacturers will be designing bespoke chips and this is Intels problem.There’s a shortage of chip manufacturing. TMSC might be doing quite well now and giving Apple what they need, but it only needs China to “re-unify” Taiwan and who’s to say that their chip supply will as robust and reliable (or as cheap). It could come to be, down the line when Apple might be looking for Intel’s support with their contract foundries, so it makes sense for both companies to not burn bridges.
Apple does not need Intel and more and more computer manufacturers will be designing bespoke chips and this is Intels problem.
Apple could and should consider its own manufacturing of chips within USA or a trusted ally outside of Taiwan. Apple could easily afford it although they should reconsider their investment in Germany after the EU showed it’s true colours in blocking exports of a company operating in EU.
TSMC could be a target for Apple but better for Apple to set up to produce its own chips plus possibly supply others as that will allay concerns on monopolising market or similar claims. Intel has failed to grasp the nature of the market has changed irrevocably let alone failed miserably on 7nm putting that off several times.
Apple designs its chips so to produce is a logical step from security of supply even to a US national interest and if Musk can get billions in subsidies and grants no doubt a state of the art manufacturing capability would suit Apple and the USA well.
the idea that because Intel returned increased profit means they are doing great is incorrect as much of the income is from customers who have no option to use other chips and that is changing rapidly and Intel have failed to grasp it.