Intel dumps its silicon photonics bells and whistles into Jabil's lap

Intel is shedding its silicon photonics transceiver module business as part of restructuring and cost-cutting measures, offloading it to manufacturing company Jabil. Silicon photonics is the blending of optical and silicon technologies, and in the case of transceiver modules, these are used to connect an optical fiber to a …

[Gene Cash]

Know how Intel could REALLY generate savings?

Stop making semiconductors!

Look at how expensive all those fabs are! That's billions they could save!

[Yet Another Anonymous coward]

Re: Know how Intel could REALLY generate savings?

But it only generates savings once.

The trick is to exit the semiconductor segment every year, that way you can generate $100Bn in savings on an annual basis

[Paul Crawford]

So one again Intel bets the farm, dog, and wife on x86 and prays. Oh brother, pray for Intel's salvation! Pray!

What, that seems like a poor plan engineered by useless management?

[Anonymous Coward]

As usual (see: HP, and many many other examples) not a great sign when a company starts trying to cut its way to better profits instead of coming up with products customers want.

[Anonymous Coward]

Unless someone can point to evidence that this would as a decent revenue earner, my understanding is that Intel mainly used this as an R&D function for other parts of their business.

My guess is that with the cost of the latest fabs the R&D into this area is much more limited and the turning this into commercial products no longer benefits Intel as other manufacturers have access to TSMC and similar capabilities so the market is competitive and Intel's fabs can be used for more profitable products.

So not sure that it's directly comparable to cutting back on products customers necessarily want from Intel.