Remember Drydee Diapers?
The CEO of UNION CARBIDE... the company now dead and buried, wanted to get into the Proctor and Gamble space with Diapers. And some genius named them Drydees.
Intel has now scrapped the future. Once the king of CPU's they allowed AMD to get a pricing foothold. Intel thought they were building cars so they invented the Celeron which was a cheap underpowered Chevy while selling overpriced Cadillacs at the other end and nothing in between that is NOTHING BUT AMD who became Toyota.
After 90 Billion in stock buybacks, the Intel Board brings back Patrick Gelsinger, a retread from the 1980s as if he is the second coming of Steve Jobs. And for his Drydees debut, Gelsinger has punked with the Gov on FAB a low-margin business that is labour-intensive. The perfect type of industry to AVOID. It's the Diaper Business all over again.
Intel certainly has had help from the Federal Gov on destroying its market share. Obama Blocked Intel CPUs that were under Contract by a Chinese firm to build a Supercomputer. There were no secrets, the Chinese requested the chips for this purpose. Obama the great economic genius blocked the sale and 15 months later China was building their own powerful RISC Chips and won the honours of the fastest supercomputer. This effort by the gov to block intel led to INTEL missing the entire handheld market. Asia did not want to be dependent on Intel that politicians controlled.
Then Intel failed at 5G chips, failed at 10nm fab [oh but they are not going to lead the world with 2nm Fab out of Ohio!]. One fail after another but plenty of buybacks. Then Intel Board picks this born-again nut job who has all his focus on FAB while the Intel business units pitch into the sea. Narrow Gated Fab is easily handled by two companies, TSMC and Samsung. Nothing is changing in Asia. Asians who make the electronics and assemble the consumer and server products do not want US components that could be blocked or come under political pressure by US Politicians.
Look at Trump. He was so stupid he didn't know that Android was open-source. Blocking Android only harmed Google's special services. Meanwhile, Huawei developed Android Harmony and replaced all the Google Services with Chinese Domestic Services. Trump was an uninformed idiot. Biden is just following the same protectionist path so US Semiconductors are cooked. Who is suffering? US Semiconductor companies. And even with politicians trying to control ASML and other foreign firms, The demand for US Semiconductors continues to decline.
If you were a phone maker in the North Pole, would you use US-made Semiconductors in your phones? NO because at a whim any politician in Murica could punish your company because of some dispute over natives hunting Polar Bears. This is just this CRAZY WOKE economics now common to both Dems and Republicans. There are no free traders left in Murica... only half-cocked nuts that destroy major US industrial sectors over meaningless WOKE crap and personalities. Asia is not WOKE... It is competitive so they are not buying your BBQ.
Trump and Biden tried to destroy Huawei even resorting to Kidnapping the Founder's daughter. Yet compare the profits of Huawei in the last quarter and the losses of Intel. Protectionism only destroys domestic businesses. Huawei has 40% of the US Sanctioned world to sell their products without competition. Sanctions force US businesses to pull out of those markets. All that effort by companies to build those markets was destroyed in minutes by some dumb politician.
Intel is pitching into the sea. The incredible stupidity of the INTEL CEO to enter FAB where Intel has already failed at 10nm, in Ohio of all places, where independent cost estimates say Intel's fab will cost 300% more than Asian Fab, is selling Drydees at 3x the cost of Pampers. The math doesn't work.
Intel wants to compete with NVIDIA for GPUs, a business already being blocked by Dumb US Politicians. What is the net result? Chinese Biren Technology has a BR100 that compares very favourably with the NVIDIA line. Biden banning US GPUs only harms NVIDIA and INTEL's pretend future business. Intel will not catch NVIDIA and Biren Technology has free access to the giant Asian markets and it's just a startup and only four or five years old. NVIDIA needs to leave the US to save itself from US Political ruin.
Gelsinger is Intel's "Ginni" Rometty. The Board can wait until GINNI GELSINGER destroys the company or they can get rid of him fast. Gelsinger is now in Ax mode, undoubtedly cutting the wrong business groups and pushing the insane Ohio fab lunacy. This is a departure from Intel Core business like no other. It is how GINNI ROMETTY converted IBM from a viable business into a Corpse. Always promise the future... Promise the Drydees.
“Sweatpants are a sign of defeat. You lost control of your life so you bought some sweatpants.”
Karl Lagerfeld
Gelsinger is in bed with the dumbest US Politicians. He is feeding their Marxist Protectionism Lunacy repackaging it as "rebalancing." Protectionism only gives China and Asia the incentive to develop their own competing products. Imagine the US has sanctions on 40% of the world's population or roughly 3.2 billion people. this 3.2 Billion market was removed by Dumb US politicians from the reach of American companies. That void is going to be filled by China and Asian competitors.
Gelsinger gets a lot of press but every time he opens his mouth the rest of the US Semiconductor businesses cringe. The Intel downward spiral is accelerating.
Biting the hand that feeds IT
