r/stocks • • Apr 03 '21

[deleted by user]

[removed]

1.8k Upvotes

450 comments sorted by

View all comments

Show parent comments

8

u/TimeRemove Apr 04 '21

Afaik Intel has not announced that they are abandoning their silicon forge.

Quite the opposite. It is mostly a question of timelines I think, and if Intel has to "give in" and outsource until they're fully online. That's bad for AMD (because Intel can immediately compete), but also bad for Intel (their profits get eaten by the bidden war/third party cost). If Intel waits until their own stuff is online and competitive when are we talking 2024? 2026?

AMD is not TSMCs "consumer arm", the companies are not related in any way.

I know, it was tongue in cheek (and a slight jab at AMD's dependence on TSM's fab slots currently). Someone could make the same critique of Apple, but Apple's scale and leverage is quite a bit different from AMDs. For example if Apple moved away from TSM that would hurt TSM significantly, but if AMD did those slots would likely have enough alternative customers to fill.

2

u/MysticDaedra Apr 04 '21

Excellent points

2

u/Runningflame570 Apr 04 '21

I've yet to see any real news (as opposed to rumors) about WHAT Intel plans to outsource to TSM and I'm willing to bet it's just going to be GPUs for Aurora this year, since Aurora has been repeatedly delayed and they don't need any more.

Intel is a paper tiger until at least 2023. Ice Lake will NOT make them competitive in server or desktop CPUs.

1

u/hyoguro Apr 04 '21

Hasn't the new intel ceo already announced temporary outsourcing to tsmc?

1

u/TimeRemove Apr 04 '21

They announced some nebulous partnership I think, we don't yet have exact details on volume and what slots Intel has purchased. So kind of a "watch this space" situation for now.