Which is not a bad thing. Intel Foundry and Intel x86 should have been separated for a long time. The ground work was laid out by Pat Gelsinger already.
Even before Pat took over I have said on HN the task for Intel to complete with TSMC is near impossible. Both because TSMC have no structure, economical or technical weakness, and Intel isn't even well run. I gave Pat benefits of doubt because he is possibly the only person on the planet who could save Intel. And if anything I learned, it is the board that holds the power. Not CEO.
You will need to burn money to catch up, hence why Pat wanted to stop dividends as the first thing he come back but that was not allowed, while Intel was still earning enough money from Xeon. Now AMD has finally gain enough in Server market and will continue to do so. There is nothing left in Intel that allows them to burn money and catch up to TSMC.
Which means the only choice they have is to spilt and use TSMC to compete.
In a perfect world AMD would buy all the non-foundry x86 asset for $20 - 30B. And Intel will continue the Foundry business, working directly with AMD making sure they will have future x86 chip produced in Intel Foundry.
Even before Pat took over I have said on HN the task for Intel to complete with TSMC is near impossible. Both because TSMC have no structure, economical or technical weakness, and Intel isn't even well run. I gave Pat benefits of doubt because he is possibly the only person on the planet who could save Intel. And if anything I learned, it is the board that holds the power. Not CEO.
You will need to burn money to catch up, hence why Pat wanted to stop dividends as the first thing he come back but that was not allowed, while Intel was still earning enough money from Xeon. Now AMD has finally gain enough in Server market and will continue to do so. There is nothing left in Intel that allows them to burn money and catch up to TSMC.
Which means the only choice they have is to spilt and use TSMC to compete.
In a perfect world AMD would buy all the non-foundry x86 asset for $20 - 30B. And Intel will continue the Foundry business, working directly with AMD making sure they will have future x86 chip produced in Intel Foundry.