Intel is in corporate ICU. Challenging truth that requires acceptance and action.
Is there a recovery? What are your thoughts?
I programmed with Intel based computers, using Intel x86 chips with its opcodes and CISC architecture. I hoarded Intel technical references and manuals. Intel was the dominant partner in the WinTel duopoly play for much of 80s and 90s. Many of us grew reading books from Andy Grove (legendary CEO of Intel): High Output Management, Only the Paranoid Survive, etc. We watched “Intel Inside” ads promote a broader understanding of technology and value to the society.
Coming into the 2010s, Intel has been experiencing middle ages and has definitely been sick in 202s. Is that a COVID effect? No. it is a sustained loss and miss in the market. The semiconductor market has grown vigorously with broader and deeper investments. Semiconductor chips rule wide range of industries in automotive, AI, data centers, edge computing, graphics, IOTs, life sciences, mobile, etc. Manufacturing has gone deeper from the micrometers to nanometers and soon to picometer technologies. While the costs of manufacturing has exponentially grown, the market for chips has grown even more. Intel is struggling in this market.
Recently Intel has made several dramatic efforts to revive and grow. There is no serious dent made yet. Intel makes billions in revenues, but growth has stalled. Intel makes billions in profits, but insufficient to satiate the growth hungry markets. Intel has thousands of PhDs and great people, but the boat is behind in the race. Intel has full stack solutions in the semiconductor industry: software, data center, chip design, manufacturing, and solutions. And yet, is not winning with all these. Leadership has been changing too. So what shall the company do?
Aswath Damodaran wrote about Intel in September 2024. see here https://aswathdamodaran.blogspot.com/2024/09/dealing-with-aging-daignosing-intel.html I love his analysis on the situation and use of corporate life cycle to illustrate possible ways to recover. He makes a case that Intel can get back to better days with deeper acceptance, renewal, and reincarnation.
Is there a turnaround story like what happened at Apple in the 2000?
What can enable Intel to become re-relevant again?
Asking the question to your favorite AI / chatbots may provide usual recipe: a combination of bold investments, strategic focus, and strong leadership can help Intel. Most chatbots are focused on 5-6 year turnarounds. Intel may not have that luxury of time. It needs to have an aggressive 18-36 month plan. This requires significant urgency, bold decisions, and flawless execution. It requires thinking fast and slow. It requires significant paranoia and a dash of luck. I wonder how this Cinderella story may unfold. I am looking to watch and learn more. Perhaps I may program again with Intel chips (or products) again.
Also posted to linkedIn here
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