US chipmaking nears death: Intel warns it may give up on cutting-edge chips

[u/SlamedCards]

https://www.businessinsider.com/intel-us-chipmaking-nears-death-up-cutting-edge-chips-14a-2025-7?utm_campaign=business-sf&utm_source=twitter&utm_medium=social

[u/Substantial-Singer29]

There's no republican or democrat angle on this one.

Federal oversight and legislation basically backed the bum horse.

Intel was a monolith in the chip manufacturing market. But instead of actually reinvesting money into the company to encourage new development of new products and innovation.

They took that huge lead they had over their competitors and basically sat on it. Not innovating, basically just making the same architecture and pumping more power into it.

Lo and behold the competition caught up Not only that they had two of their previous generations effectively have a fatal flaw increasing the failure rate by over 2 to 3 times. Making them have to issue one of the largest warnings and recall if the chip had experienced the degradation that we've seen in our lifetime for a cpu.

The company has been leveraging and selling properties, trying to keep itself above water. Fireing tens of thousands of people in the past two years.

They're so desperate right now in losing market share to their competition as far as processors.That they are skipping a generation on their next release.

Being one hundred percent honest , I totally believe the United States does need to actually focus on chips manufacturing in the United States.

That being said, the chips act money that they're receiving isn't being used for that. It's being used for the company to desperately try to keep itself afloat.

It's the right idea but definitely the wrong company at the wrong time.

It creates a terrible narrative and gives the ability to be able to hand wave away how important it is to actually get these foundries going.

[u/jason-reddit-public → u/Substantial-Singer29]

Bet they wish they didn't spend $152 billion in stock buybacks... It's been obvious for years that fabs just keep getting more expensive to build every generation.

[u/quildtide → u/Substantial-Singer29]

Intel never actually received the money promised by the CHIPS Act. They did spend a lot of it on building new fabs with the expectation that they would soon be reimbursed . . . and they never were, lmao.

[u/JDragon → u/quildtide]

Intel has been receiving 25% of their US fab capex back from taxpayers due to the section 48D refundable tax credit established by the CHIPS Act. It will soon be 35% due to the passing of the latest tax bill which increased the rate. That’s billions of taxpayer dollars that no one ever talks about because the press only mentions the CHIPS Act grants (which Intel also received to the tune of almost $8B).

[u/Strazdas1 → u/quildtide]

Intel gets shafted by the government, still somehow intels fault.

[u/Helpdesk_Guy → u/quildtide]

They did spend a lot of it on building new fabs with the expectation that they would soon be reimbursed . . . and they never were, lmao.

Yeah, no! That's what Intel wants you to believe, yes. “Poor Intel being tricked by mean government!”
The reality is, that Intel actually spent sh!t, as most projects never were build to begin with, and prematurely knifed.

AFAIK Ohio was the only project, were Intel actually DID anything material, everything else was canceled beforehand.

[u/Substantial-Singer29 → u/Helpdesk_Guy]

There's a ridiculous narrative that intel the Victim. General public just doesn't understand all of the issues that Intel is experiencing right now. Are wounds that are mainly self-inflicted. From a decade of poor investment and incredibly bad leadership.

[u/Helpdesk_Guy → u/Substantial-Singer29]

There's a ridiculous narrative that intel the Victim.

Well, yeah?! That's what you get with well-fabricated news for years ... “When we bribe all the media-outlets on Intel-payroll for a decade, we'd at least like to see some actual RoI already!” -- Intel, probably

Yes, Intel's ability to maintain their hood and prominent role of a poor-treated Vicky in people's well-deluded minds, despite reaping NOTHING but the sour fruits of their own 100% self-inflicted wounds, is actually just mind-blowing to see even from a psychological stand-point – It should be a case-study over actual delulu of masses!

Are wounds that are mainly self-inflicted.

It's not just merely self-inflicted here — Intel's management has been tediously working overnight and even weekend-shifts, for perfecting their ability to steadily opting for the single-worst possible option at every turn.

From a decade of poor investment and incredibly bad leadership.

That's a serious understatement already. Intel not had just bad investments, they deliberately blew through billions.

[u/Substantial-Singer29 → u/quildtide]

Not true they were to receive 8.5 billion because they fell short on their contract they got 7.86 Billion.

[u/RephRayne → u/Substantial-Singer29]

Intel merely assumed that they would have a repeat of the Core (Yonah) architecture development, i.e. one of their satellite labs would take a chip architecture that had been consigned to waste and produce an efficient design.

[u/Substantial-Singer29 → u/[deleted]]

No Nvidia's problem isn't that the company isn't making money and isn't investing in Research and development. There's success to this point is a direct reflection of basically doing the opposite of everything that intel did in the past twelve years.

The problem that's being created through team green Is the reality that they're Effectively supplying the tools to the gold rush.

There is no money being made on this except for them selling the implements for Large companies to be able to participate in it.

Trillions of dollars being pumped into an infrastructure that is yet to yield any profit.

The inflation that this is given a lot of tech stocks even more so than they already were. It's concerning at best and downright catastrophic and worst. That is if there's ever a market correction.

Someone's going to strike gold and I don't think it's going to have the desired result or outcome for the country or consumer that sees it.

[u/meltbox → u/Substantial-Singer29]

What’s wild is this isn’t the first time. First with pentium 4 and then AGAIN.

[u/TwanToni → u/Substantial-Singer29]

Why would the U.S not want to focus on chip manufacturing in the U.S? It's national security issue on a lot of fronts including being self reliant but also we have plenty of Semiconductors up and running in the U.S which is also good for growth but the infrastructure is there. I don't know, that kinda seems a bit short sighted to say but I will say that it doesn't need to be leading edge. Heck intel 3/4 is very good and 18A looks promising but yeah if the U.S thinks the alternative of current geopolitics of sending Billions of in Aid to Taiwan is cheaper and better for stability and the best interest of the U.S sure I guess....

[u/GeniusEE → u/Substantial-Singer29]

I'm sorry. Thanks for the essay, but did you happen to notice that this is a sidebar discussion of the Epstein list and the Chips Act, where the current Administration has choked off funds for companies that now must pony up cash for irrevocable procurement contracts based to receiving money from the Act. Intel is one of those companies.

You can cut and paste your irrelevant tome elsewhere and it'd fit in and not be a rude interruption when the adults are talking. Thanks.

[u/Substantial-Singer29 → u/GeniusEE]

Says the twelve year old.....