Intel Investor Meeting 2017: February 9

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If anyone has more information about opportunities and potential problems Intel is facing, please share if there is public information to back up your statement.

I'll take a crack at this question, but I really hope you will use it as a basis for your own research rather than just taking it and using it in its entirety for your assignment...

Intel has historically been dependent on the personal computer market, a market that went into decline beginning in 2012 as tablets (and smartphones) became more capable and were able to take over many of the tasks that people previously required PCs for. The company has been working for years to diversify into new markets and to strengthen its position in existing ones, but with varying degrees of success.

One area that has been successful for Intel has been its Data Center Group, or DCG. DCG benefits from the fact that demand for cloud servers and networking infrastructure is growing quite rapidly, though that growth is somewhat offset by declines in the traditional enterprise server business (cloud servers are "cannibalizing" on-premises enterprise servers to some degree). Intel's strength here has traditionally been in its processor products/designs, but it has been trying to capture more of the pie by building out its presence in other data center products like networking switches, HPC interconnect fabric, and soon even 3D XPoint memory, which Intel hopes will cannibalize DRAM in some servers/applications (Intel has no DRAM presence, so this is theoretically all upside).

The risk here is that Intel's DCG has virtually 100% share of the server processor market and many companies have publicly said they aim to take significant share (ARM says it expects partners to get ~25% market share by 2020, AMD wants "double digit" share, and IBM is pushing OpenPOWER pretty hard).

Another area that has been successful is its Internet of Things group, which is essentially Intel's embedded business under a fancier, more analyst/stockholder friendly name. Intel has seen reasonable success here so far -- its IoT business is nearly at $3 billion/yr in revenue -- and there's a lot of excitement around new markets like self-driving cars since these have the potential to have both high volumes (lots of cars get sold per year) as well as high dollar content per car (lots of computing power needed per car).

Intel has obviously struggled in the mobile market, particularly mobile SoCs for smartphones and tablets. Intel has lost a lot of money chasing this market, but it has recently scaled back its investments here and seems to be focusing mainly on standalone modems for Apple (and other potential applications in IoT and in PCs, but revenue here is not significant).

Intel is also doubling down on its non-volatile storage business, which mainly sells NAND flash based SSDs into data center and high-end consumer. This business can be very volatile as it is a cyclical commodity business. Intel thinks this is going to be a big growth opportunity for them, though.

Circling back to PCs, most of Intel's revenue still comes from PCs, and this market is expected to be in decline for the foreseeable future, so that serves as a millstone around Intel's neck -- even if its other businesses, collectively, grow nicely, the company's overall growth rate could still be anchored down by the performance of the PC market (barring some massive upward inflection in PC demand, for example).

Intel has talked up opportunities in contract chip manufacturing for third party companies to try to gain some business from TSMC/Samsung, but so far the revenue contribution from this is a rounding-error away from 0. Intel did not present about this opportunity at its latest investor day, so it's unlikely that the company expects any big surge in revenue here anytime soon.

tl;dr -- Intel is a company that has been wildly successful in the personal computer market, but its immense success here is now working against it as declines here are expected to offset the growth that the company hopes to continue to see in other, healthier end markets.
 

witeken

Diamond Member
Dec 25, 2013
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I am focusing on the Client Computing Group; mobile is practically a goner and I got enough info on them not to pursue but even though the Data Center brings in a large percentage of revenue I still want to find about other hurdles they are facing. What I am getting is mostly positive articles. From what I have researched management and marketing issues have caused a chain of problems in various areas so I would like to know about them if possible.
For negative views, there are some bears over at http://seekingalpha.com/symbol/INTC

But unless you gave specific questions can't really say much.

But hurdles they are facing? In pc space, there hasn't really been any competitor with competitive products. That's going to change in a month with Ryzen from AMD. So question is will Intel start losing market share and has to drop prices?

@Arachnotronic wow u beat me to it.
 

Qwertilot

Golden Member
Nov 28, 2013
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Or, taking it bit longer term/philosophical, the domestic PC processor market is comoditising, and doing so really quite fast too.

Intel themselves long since hit 'fast enough' for a huge majority of it. That makes driving upgrades very hard, it won't be long before you can buy a 'fast enough' processor from say Media Tek, and you can be absolutely sure that they won't charge much for it when you can.
 
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For negative views, there are some bears over at http://seekingalpha.com/symbol/INTC

But unless you gave specific questions can't really say much.

But hurdles they are facing? In pc space, there hasn't really been any competitor with competitive products. That's going to change in a month with Ryzen from AMD. So question is will Intel start losing market share and has to drop prices?

@Arachnotronic wow u beat me to it.
I found out about the potential of market loss due to Ryzen from AMD from a few articles. I will check out that website link. For a specific questions, here's what I have dug up so far so if I can get more information on these "red flags" I noticed it would help me out. Why is intel facing so many halt releases of products when they have updated their supply management back in 2012. Like the launch of the 10nm was delayed as well. If AMD moves to the GFnm in 2019, So why is supply ( not enough) or release dates being postponed. Intel cannot afford another 18 month delay in moving server CPC to the latest mode. Which means they are likely to move to xeon, is that correct? I would like to know in what ways does TSMC and ARM econ system with AMD/GF posses a threat to DCG. Again my tech knowledge is very limited since I am a finance major. Most of the info I am shared were "potential red flags" for me in the past two months of research. I mean there's so many positive articles about what Intel is doing to advance themselves but not enough about the hurdles they are facing. I've managed to find some and wanted a bit more background info if possible .
Intel was rated as have one of the top Supply chain management so why can't they deliver like Apple, what are the hidden hurdles ? In 2014 Intel disclosed that its newly announced nay trail platform intended for windows and android tables has serious cost structure problems. Intel provided a contra revenue solution for it at that time. After the recreation of Broxton which was once again pushed to 2016, intel replaces bail trail with the cherry trail platform. I want to know what hurdles they are facing or potentially will face with the cherry trail platform. I couldn't find more information on this, so if you know of anything that would be great. Also, the acquisition of Altera was a good strategic move but what are hurdles are they facing with it. Again, couldn't find enough info on this acquisition. From my research Intel has tied manager pay to diversity statistics, has this been a successful move for them to solve their diversity issue? again limited information found from my end. I read somewhere that Intel may be facing operation issues in the data center and the semiconductor industry . Also, I would like to know more about why intel emphasizes CPC clock rate over everything else rather than taking a balance performance approach. Found very little info on this. What went wrong with MHZ. I would like to know more about the domino theory; a big problem was the use of self resetting domino circuits where time sensitive. If I can get more info on this. I know McAfee will be shed from Intels financials and they are trying to sell it according to one of my contacts, it has been a bust. I did the monte carlo simulations and also projected losses since the purchases, so I am curious to know if the security department is facing another other losses.
 
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I'll take a crack at this question, but I really hope you will use it as a basis for your own research rather than just taking it and using it in its entirety for your assignment...

Intel has historically been dependent on the personal computer market, a market that went into decline beginning in 2012 as tablets (and smartphones) became more capable and were able to take over many of the tasks that people previously required PCs for. The company has been working for years to diversify into new markets and to strengthen its position in existing ones, but with varying degrees of success.

One area that has been successful for Intel has been its Data Center Group, or DCG. DCG benefits from the fact that demand for cloud servers and networking infrastructure is growing quite rapidly, though that growth is somewhat offset by declines in the traditional enterprise server business (cloud servers are "cannibalizing" on-premises enterprise servers to some degree). Intel's strength here has traditionally been in its processor products/designs, but it has been trying to capture more of the pie by building out its presence in other data center products like networking switches, HPC interconnect fabric, and soon even 3D XPoint memory, which Intel hopes will cannibalize DRAM in some servers/applications (Intel has no DRAM presence, so this is theoretically all upside).

The risk here is that Intel's DCG has virtually 100% share of the server processor market and many companies have publicly said they aim to take significant share (ARM says it expects partners to get ~25% market share by 2020, AMD wants "double digit" share, and IBM is pushing OpenPOWER pretty hard).

Another area that has been successful is its Internet of Things group, which is essentially Intel's embedded business under a fancier, more analyst/stockholder friendly name. Intel has seen reasonable success here so far -- its IoT business is nearly at $3 billion/yr in revenue -- and there's a lot of excitement around new markets like self-driving cars since these have the potential to have both high volumes (lots of cars get sold per year) as well as high dollar content per car (lots of computing power needed per car).

Intel has obviously struggled in the mobile market, particularly mobile SoCs for smartphones and tablets. Intel has lost a lot of money chasing this market, but it has recently scaled back its investments here and seems to be focusing mainly on standalone modems for Apple (and other potential applications in IoT and in PCs, but revenue here is not significant).

Intel is also doubling down on its non-volatile storage business, which mainly sells NAND flash based SSDs into data center and high-end consumer. This business can be very volatile as it is a cyclical commodity business. Intel thinks this is going to be a big growth opportunity for them, though.

Circling back to PCs, most of Intel's revenue still comes from PCs, and this market is expected to be in decline for the foreseeable future, so that serves as a millstone around Intel's neck -- even if its other businesses, collectively, grow nicely, the company's overall growth rate could still be anchored down by the performance of the PC market (barring some massive upward inflection in PC demand, for example).

Intel has talked up opportunities in contract chip manufacturing for third party companies to try to gain some business from TSMC/Samsung, but so far the revenue contribution from this is a rounding-error away from 0. Intel did not present about this opportunity at its latest investor day, so it's unlikely that the company expects any big surge in revenue here anytime soon.

tl;dr -- Intel is a company that has been wildly successful in the personal computer market, but its immense success here is now working against it as declines here are expected to offset the growth that the company hopes to continue to see in other, healthier end markets.
Thank you so much for this. Of course I will use in a base format. My class ends in May, so you are welcome to check out my LinkedIn profile where I will be posting my Cap stone project once the course ends. I am all about doing my own work, it just the uniqueness of my situation is that other students are in a group doing a small local company. They have access to the companies employees and can ask them any questions they want. I wanted to challenge myself more so I asked my Professor if I could do Intel as my company. I thought with all my connections and the confidential agreement provided by the university I could easily get the answers to my questions. I did not take into consideration that the Legal department would not agree. Afterwards, my project was limited to public information. I understand the hurdles they are facing from the 10k financial annual report but even that doesn't really give me the big picture because you need to dive a bit deeper to really grasp what's happening in that sector. You can see profits but there might also be wasted resources. I am sure you know what I mean. Here's the link to my linkedIn, come may you are welcome to check out my project. https://www.linkedin.com/in/lidiyagnikolayev/ I found this website through an article that had a direct link. When I realized it was a very tech driven website, I thought I could potentially get some help from the knowledge people of the tech industry in the sense of " point me in the right direction, and I will do my own research into it" kind of advice.
 
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Thank you so much for this. Of course I will use in a base format. My class ends in May, so you are welcome to check out my LinkedIn profile where I will be posting my Cap stone project once the course ends. I am all about doing my own work, it just the uniqueness of my situation is that other students are in a group doing a small local company. They have access to the companies employees and can ask them any questions they want. I wanted to challenge myself more so I asked my Professor if I could do Intel as my company. I thought with all my connections and the confidential agreement provided by the university I could easily get the answers to my questions. I did not take into consideration that the Legal department would not agree. Afterwards, my project was limited to public information. I understand the hurdles they are facing from the 10k financial annual report but even that doesn't really give me the big picture because you need to dive a bit deeper to really grasp what's happening in that sector. You can see profits but there might also be wasted resources. I am sure you know what I mean. Here's the link to my linkedIn, come may you are welcome to check out my project. https://www.linkedin.com/in/lidiyagnikolayev/ I found this website through an article that had a direct link. When I realized it was a very tech driven website, I thought I could potentially get some help from the knowledge people of the tech industry in the sense of " point me in the right direction, and I will do my own research into it" kind of advice.
I know about its successes such as paragraphs 1 and 2. You can easily obtain this from the 10k or even their websites. I know about some of the positive moves they are making such as the 3dx which read about in an article. I didn't know some of the info in paragraph 3 so that's definitely work researching into deeper. Overall I have a strong understanding of the direction they are headed with cloud, intel artificial intelligence , betting on integrating their cloud to more components, Internet of things potential growth, how they are trying to put the GPS into the currie system, which has a longer battery life for wearables, I know about the packaging issues they were facing and the new EMIB will help solve some of those issues. I spent a lot of time researching into this company. I didn't even know what a semiconductor was when I first started out. I found out all that positive info you gave me. My report isn't really about what they are doing right but rather about what they are doing wrong, what opportunities they are missing out on, what challenges they are facing, and this is where I often hit a wall. I find some problems in older articles but then new articles state that problem has been solved. Why I have do dig deeper into potential problems? is due to the fact that have to give a recommendation report on how they can potentially solve these problems. You can't do so without analyzing and understand the problem in depth. Which is why I am looking in all directions, and when I find something I want to dig deeper into it. I had to learn what a semiconductor does even because I have to explain it later. It was brutal for a non-tech person.
 
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Or, taking it bit longer term/philosophical, the domestic PC processor market is comoditising, and doing so really quite fast too.

Intel themselves long since hit 'fast enough' for a huge majority of it. That makes driving upgrades very hard, it won't be long before you can buy a 'fast enough' processor from say Media Tek, and you can be absolutely sure that they won't charge much for it when you can.
Hmm .. interesting... I found this very helpful. I will see what more I can find out online. Thanks for pointing me in the right direction. It does seem like a pattern with Intel I noticed through some articles. Thanks for sharing.
 
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Hmm .. interesting... I found this very helpful. I will see what more I can find out online. Thanks for pointing me in the right direction. It does seem like a pattern with Intel I noticed through some articles. Thanks for sharing.
Intel has cut their spending on the PC sector despite it still bringing a large portion of their profits. Which is why other companies are gaining market share, just like you said it's likely that it will hit their financials harder in the future with other companies such as AMD coming out with more improvements to gain greater market share.
 

Qwertilot

Golden Member
Nov 28, 2013
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They're an exceedingly long way from idiots :) They can almost certainly see that they may have to abandon the whole PC sector in say 10 years.
(Due to not being able to get the margins they want/need to make it worth while.).

They're very likely to do fine though - even with mobile being a near write off, there are some other potentially huge growth areas for them to aim at in the meantime.
 
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Lidiya:

1. In a different thread I just asked a kinda dumb question and received a response that was fast, accurate, completely responsive and I acted on the information within 15 minutes. A binary model of whether IT folks are antisocial vs helpful is just the wrong model.

2. Anandtech strives to have a breadth of appeal that is comparable to Alice’s Restaurant. Still, there are well thought out and sound reasons why the babe thread is not located in the CPU’s and Overclocking forum. I immediately dismissed your initial concerns based solely on inappropriate avatar selection (subsequently withdrawn). Perhaps my biases against too much skirt are not unique.

3. Some dead guy said something relevant about leadership, H20 and a horse. Both Seeking Alpha and Motley Fool frequently refer to Anandtech as a reasonably authoritative site for often contentious information about hurdles Intel is facing. I find this site is positively littered with that kind of information. However, my formal training is in finance and tech is just a 40 year interest so maybe I do not understand. In this metaphor, I am not saying you are all wet.
I am somewhat confused by your #3 response. I don't see how my avatar was inappropriate considering that was my picture and face. I found this site while reading a tech related article about Intel and clicked on the link. I saw it was a tech driven platform and thought I could finally get a bit more information into hurdles intel is facing considering the point of my cap stone project is to find what they are doing wrong and come up with creative approaches and recommendations from my own creative mind. I found some red flags during my research since the beginning of the semester but I was often confined to outdated articles ( 3+ years) or stuck reading about all the positive things they are doing. How can you come up with a solution if you don't see the problem or get more information on it. I have zero tech background in the industry if you don't count excel. I noticed management was an issue for many, delays of 18 months of launching a new product was common despite their highly ranked Supply Chain Management updated some years back. The semiconductor industry was facing some hurdles, mobile of course is a goner if you consider the billions lost, the delay in the 10nm launch can hurt them, competitors gain edge in the PC market, Intel sometimes buys underperforming businesses, the whole issue with the contra revenue for Braxton but how is the Cherry trail holding up in comparison and what hurdles is it facing. These are the types of questions I ask myself after discovering a problem. Packing was a major issue according to old articles but then EMIB solves some of them. So not only am I up against outdated articles at times, but also most of the info out there is "positive". I saw an opportunity to chat with people from a strong technical background that can potentially shine some light in the right direction for me so I can than dive deeper into research about that area or issue online and see what I can uncover. Instead I was faced with backlash, my intentions misunderstood, even put down. You have 40 years of experience as you have stated, yet despite that you jumped into conclusion that was not accurate. Therefore, I found it necessary to reply harshly. I don't understand the whole "wet" comment. The 10k annual report and doing an industry analysis is helpful but it doesn't give me those critical answers I am looking for. For example, the data center is becoming gold for intel, but surely, it must be facing some issues. The semiconductor industry is up against technically challenges, but what specifically is the biggest one. Intel realizes the threat from TSMC and Arm Ecosystem with AMD/ GF poses to the Data Center Group, but what are the issues that are creating the delays for the 10nm that could lead to a margin hit. It's those deeper questions and sometimes just a general tell me about a potential problem I can do more research into answers was I was looking for. Other students are doing small companies within a group setting, I wanted to do Intel because I thought my connections would help me get some answers to my questions instead legal didn't approve of the confidential agreement and I got stuck to online research with public info that was somewhat outdated at times. I would find 2 problems but then a newer article would state they would be solved. Some problems still exist that I am looking into such as management and communication. I don't have the luxury of a site visit like other students in my class or ask employees questions about the company. I kinda shot myself in the foot by choosing Intel as my cap stone course company but I am doing the best I can from all directions to dive deep into the company as much as I can public perspective. The finance people I talked to understood this but I was shocked about some of the backlash from the tech community so yes, I did presume that they were unhelpful and antisocial. Although, it seems that was not the case for some people did reply nicely to me once I gave the background information. Perhaps my approach was wrong by just asking a question about potential problems Intel is facing, instead I should have given my reasoning for doing so. I just didn't think that my simple question would be perceived with such harsh reactions .
 
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I am somewhat confused by your #3 response. I don't see how my avatar was inappropriate considering that was my picture and face. I found this site while reading a tech related article about Intel and clicked on the link. I saw it was a tech driven platform and thought I could finally get a bit more information into hurdles intel is facing considering the point of my cap stone project is to find what they are doing wrong and come up with creative approaches and recommendations from my own creative mind. I found some red flags during my research since the beginning of the semester but I was often confined to outdated articles ( 3+ years) or stuck reading about all the positive things they are doing. How can you come up with a solution if you don't see the problem or get more information on it. I have zero tech background in the industry if you don't count excel. I noticed management was an issue for many, delays of 18 months of launching a new product was common despite their highly ranked Supply Chain Management updated some years back. The semiconductor industry was facing some hurdles, mobile of course is a goner if you consider the billions lost, the delay in the 10nm launch can hurt them, competitors gain edge in the PC market, Intel sometimes buys underperforming businesses, the whole issue with the contra revenue for Braxton but how is the Cherry trail holding up in comparison and what hurdles is it facing. These are the types of questions I ask myself after discovering a problem. Packing was a major issue according to old articles but then EMIB solves some of them. So not only am I up against outdated articles at times, but also most of the info out there is "positive". I saw an opportunity to chat with people from a strong technical background that can potentially shine some light in the right direction for me so I can than dive deeper into research about that area or issue online and see what I can uncover. Instead I was faced with backlash, my intentions misunderstood, even put down. You have 40 years of experience as you have stated, yet despite that you jumped into conclusion that was not accurate. Therefore, I found it necessary to reply harshly. I don't understand the whole "wet" comment. The 10k annual report and doing an industry analysis is helpful but it doesn't give me those critical answers I am looking for. For example, the data center is becoming gold for intel, but surely, it must be facing some issues. The semiconductor industry is up against technically challenges, but what specifically is the biggest one. Intel realizes the threat from TSMC and Arm Ecosystem with AMD/ GF poses to the Data Center Group, but what are the issues that are creating the delays for the 10nm that could lead to a margin hit. It's those deeper questions and sometimes just a general tell me about a potential problem I can do more research into answers was I was looking for. Other students are doing small companies within a group setting, I wanted to do Intel because I thought my connections would help me get some answers to my questions instead legal didn't approve of the confidential agreement and I got stuck to online research with public info that was somewhat outdated at times. I would find 2 problems but then a newer article would state they would be solved. Some problems still exist that I am looking into such as management and communication. I don't have the luxury of a site visit like other students in my class or ask employees questions about the company. I kinda shot myself in the foot by choosing Intel as my cap stone course company but I am doing the best I can from all directions to dive deep into the company as much as I can public perspective. The finance people I talked to understood this but I was shocked about some of the backlash from the tech community so yes, I did presume that they were unhelpful and antisocial. Although, it seems that was not the case for some people did reply nicely to me once I gave the background information. Perhaps my approach was wrong by just asking a question about potential problems Intel is facing, instead I should have given my reasoning for doing so. I just didn't think that my simple question would be perceived with such harsh reactions .

Lidiya,

I am happy to answer your questions about Intel, but could you make it easier for me? Put each question in single bullet points and keep the questions focused on specific topics. It's just hard to answer your questions when it's not entirely clear what the questions are.

Please do that, and I'll be happy to help you as much as you'd like.
 
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They're an exceedingly long way from idiots :) They can almost certainly see that they may have to abandon the whole PC sector in say 10 years.
(Due to not being able to get the margins they want/need to make it worth while.).

They're very likely to do fine though - even with mobile being a near write off, there are some other potentially huge growth areas for them to aim at in the meantime.
I am sure they will be fine which is why they are branching out so much with the R & D costs going up. What they need another PC sector type of revenue. Cloud / DCG is growing like crazy but the reality is its still affecting their gross margins. The PC did take a higher then expended growth from analyst but that probably won't last with the cut to the PC sector on the way.
 
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Lidiya,

I am happy to answer your questions about Intel, but could you make it easier for me? Put each question in single bullet points and keep the questions focused on specific topics. It's just hard to answer your questions when it's not entirely clear what the questions are.

Please do that, and I'll be happy to help you as much as you'd like.
Thank you, I can do that. Give me a few minutes to get my notebook out with the questions I have.
 
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*Semiconductors: What are some of the fundamental technical challenges that the semiconductor sector faces ?
*Servers: Is leakage and power consumption still a serious obstacle in the server rooms?
* Data Center: In the quarterly and 10K annual reports I only see the growth of the data center but some articles mentioned that there are operational issues within the data center, what is one of those issues?
*Intel didn't bring the broad well processor family to traditional tower desk instead it relied on warmed over versions of Haswell Processor? Is this still an issue ? It came from an old article need to find out.
*Is Marchitecture still triumphing over engineers?
*I want to know more about Dothan if you have any info on this.
* Release schedules seem like a serious issue, which departments are the biggest contributors to this problems?
*Semiconductor physics with each new process the window of speed shrinks, How is this affecting the ability to release new chips at a higher clock rate?
*If AMD can both ram clock speeds and design, why can't intel considering their resources. This doesn't make sense to me, why are the contributing hurdles to this?
*What went wrong with MHZ?
*What are the hurdles that are keeping intel from solving its sudden changes issues since its a extensively metric planning type of company.
*Intel has a 95 percent market share in enterprise servers and more in enterprise cloud, Intel is accelerating its speed in the private cloud sector which is about 5 years behind the public cloud. Why not focus on the public cloud?
* I know they built their own resources for cloud to reduce third party involvements but what are the hurdles they are facing because of it. Sure, it gives me an advantage but surely there must be some obstacles they didn't expect to encounter.
* Any information about the server industry would be helpful. I have more questions but for now lets start with these. I am sure your very busy!
 
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*Semiconductors: What are some of the fundamental technical challenges that the semiconductor sector faces ?

Building better manufacturing technologies that are both cost effective and yield well, while at the same time advancing performance/power consumption.

*Servers: Is leakage and power consumption still a serious obstacle in the server rooms?

Power efficiency is always a major consideration in server rooms. Cost of electricity is big data center expense, as is cooling. The more performance you can get for your fixed amount of electricity use and cooling infrastructure, the lower your total cost of ownership. This is why companies are eager to upgrade to next generation tech ASAP.

* Data Center: In the quarterly and 10K annual reports I only see the growth of the data center but some articles mentioned that there are operational issues within the data center, what is one of those issues?

Operational issues...hm. Well, they've run into some product delays recently (3DXP memory, Silicon Photonics), and there have been processor delays in recent years, too.

*Intel didn't bring the broad well processor family to traditional tower desk instead it relied on warmed over versions of Haswell Processor? Is this still an issue ? It came from an old article need to find out.

That product cycle is long over. Intel corrected this mistake and is releasing both desktop and notebook versions of its new architectures (did so with 6th gen core = Skylake, did so with 7th gen Core = Kaby Lake, and will do so again going forward).

*Is Marchitecture still triumphing over engineers?

Architectural features, performance, etc. are not defined only by engineers; marketing works with customers to figure out what features they want/think they can sell, that information is fed back to the engineering teams, and then the engineering teams execute. That's a simplified way to think about it, but marketing does set the overall direction of what products to build (because it's their job to figure out what their customers -- big PC and server OEMs -- want).

*I want to know more about Dothan if you have any info on this.

https://en.wikipedia.org/wiki/Pentium_M

* Release schedules seem like a serious issue, which departments are the biggest contributors to this problems?

In recent years, Intel's release schedules have sometimes been negatively impacted by stumbles in both product execution and manufacturing technology. Broadwell is an example of a product that was delayed both because 14nm process technology was not in the shape it needed to be, and even when they launched the initial chips, they had to do a 2nd round of products to hit the desired performance targets (points to a product design issue).

*Semiconductor physics with each new process the window of speed shrinks, How is this affecting the ability to release new chips at a higher clock rate?

Not sure what you mean, but generally speaking with new manufacturing technologies you have a number of competing forces: you have the metal stack (i.e. the wires that connect up all of the transistors) and you have the transistors themselves. Each generation usually brings faster/lower power transistors, but to get the area reduction required to reduce cost, you have to push the metal wires closer together -- something that can hurt performance/clock speed (higher parasitic capacitance).

Clock rate is determined by both the architecture/design choices as well as by the underlying manufacturing technology, and it's the job of the processor architects to try to find the optimal balance of performance/clock (referred to as "IPC" or "instructions per clock") and clock speeds, for a given manufacturing technology generation.

*If AMD can both ram clock speeds and design, why can't intel considering their resources. This doesn't make sense to me, why are the contributing hurdles to this?

Intel does this, too, but AMD is starting off from a much lower base in terms of IPC, and AMD gets a nice benefit from going from an older 28nm planar technology to a FinFET manufacturing technology, which gives a nice boost in transistor performance.

It's much easier to make a big jump when you are starting off so obviously behind than it is when you are already selling CPUs with very high clock speeds/MHz and high performance/clock.

*What went wrong with MHZ?

Somebody at Intel who is much more knowledgeable than I am did a very good explanation here, check it out:

https://software.intel.com/en-us/blogs/2014/02/19/why-has-cpu-frequency-ceased-to-grow

*What are the hurdles that are keeping intel from solving its sudden changes issues since its a extensively metric planning type of company.

Could you rephrase this question? I don't understand what you are asking.

*Intel has a 95 percent market share in enterprise servers and more in enterprise cloud, Intel is accelerating its speed in the private cloud sector which is about 5 years behind the public cloud. Why not focus on the public cloud?

Intel has similar market share in cloud servers as it does in enterprise servers (in fact, I think greater...), but the problem that Intel is facing is that cloud server deployments to some extent "cannibalize" enterprise/private cloud server sales. So Intel dominates both enterprise servers/private cloud and public cloud, but cloud growth hurts enterprise growth, which reduces the amount of revenue growth Intel can see from the server market in general.

* I know they built their own resources for cloud to reduce third party involvements but what are the hurdles they are facing because of it. Sure, it gives me an advantage but surely there must be some obstacles they didn't expect to encounter.

Intel's position in cloud today is strong, see the answer above :)

* Any information about the server industry would be helpful. I have more questions but for now lets start with these. I am sure your very busy!

This is vague, but I recommend going through Diane Bryant's presentation if you want to understand the business/industry better from Intel's perspective.

https://s21.q4cdn.com/600692695/files/doc_presentations/2017/2017_Intel_Investor_Meeting_DBryant.pdf
I also recommend following presentations from major server vendors like Lenovo, HP Inc, etc.
 
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Building better manufacturing technologies that are both cost effective and yield well, while at the same time advancing performance/power consumption.



Power efficiency is always a major consideration in server rooms. Cost of electricity is big data center expense, as is cooling. The more performance you can get for your fixed amount of electricity use and cooling infrastructure, the lower your total cost of ownership. This is why companies are eager to upgrade to next generation tech ASAP.



Operational issues...hm. Well, they've run into some product delays recently (3DXP memory, Silicon Photonics), and there have been processor delays in recent years, too.



That product cycle is long over. Intel corrected this mistake and is releasing both desktop and notebook versions of its new architectures (did so with 6th gen core = Skylake, did so with 7th gen Core = Kaby Lake, and will do so again going forward).



Architectural features, performance, etc. are not defined only by engineers; marketing works with customers to figure out what features they want/think they can sell, that information is fed back to the engineering teams, and then the engineering teams execute. That's a simplified way to think about it, but marketing does set the overall direction of what products to build (because it's their job to figure out what their customers -- big PC and server OEMs -- want).



https://en.wikipedia.org/wiki/Pentium_M



In recent years, Intel's release schedules have sometimes been negatively impacted by stumbles in both product execution and manufacturing technology. Broadwell is an example of a product that was delayed both because 14nm process technology was not in the shape it needed to be, and even when they launched the initial chips, they had to do a 2nd round of products to hit the desired performance targets (points to a product design issue).



Not sure what you mean, but generally speaking with new manufacturing technologies you have a number of competing forces: you have the metal stack (i.e. the wires that connect up all of the transistors) and you have the transistors themselves. Each generation usually brings faster/lower power transistors, but to get the area reduction required to reduce cost, you have to push the metal wires closer together -- something that can hurt performance/clock speed (higher parasitic capacitance).

Clock rate is determined by both the architecture/design choices as well as by the underlying manufacturing technology, and it's the job of the processor architects to try to find the optimal balance of performance/clock (referred to as "IPC" or "instructions per clock") and clock speeds, for a given manufacturing technology generation.



Intel does this, too, but AMD is starting off from a much lower base in terms of IPC, and AMD gets a nice benefit from going from an older 28nm planar technology to a FinFET manufacturing technology, which gives a nice boost in transistor performance.

It's much easier to make a big jump when you are starting off so obviously behind than it is when you are already selling CPUs with very high clock speeds/MHz and high performance/clock.



Somebody at Intel who is much more knowledgeable than I am did a very good explanation here, check it out:

https://software.intel.com/en-us/blogs/2014/02/19/why-has-cpu-frequency-ceased-to-grow



Could you rephrase this question? I don't understand what you are asking.



Intel has similar market share in cloud servers as it does in enterprise servers (in fact, I think greater...), but the problem that Intel is facing is that cloud server deployments to some extent "cannibalize" enterprise/private cloud server sales. So Intel dominates both enterprise servers/private cloud and public cloud, but cloud growth hurts enterprise growth, which reduces the amount of revenue growth Intel can see from the server market in general.



Intel's position in cloud today is strong, see the answer above :)



This is vague, but I recommend going through Diane Bryant's presentation if you want to understand the business/industry better from Intel's perspective.

https://s21.q4cdn.com/600692695/files/doc_presentations/2017/2017_Intel_Investor_Meeting_DBryant.pdf
I also recommend following presentations from major server vendors like Lenovo, HP Inc, etc.
I have to admit I am impressed and that doesn't happen that often. I honestly did not think that you would have such a strong and knowledgeable background to answer all my questions since they were pretty much all over the place because I created them while reading various articles online. I have to say that your last suggestion about following presentations from major server vendors is the best. Why didn't I think of that. I've been trying to get an understanding of the business/industry by broad methods instead of going right to the source of it but to be fair I didn't know that Intel made their investor meeting presentations public until someone had posted a "forum" on this website about it with links directly to Intel's website . Thank you so much! Thank you for explaining about Kaby lake and Skylake because I actually found a few articles on them but I couldn't really figure out what it was replacing and all that. Now I can go back to those articles and re-read them. I appreciate you taking time off your busy schedule to help me out. I will be posting this project in May on my LinkedIn profile once the cap stone course ends and if you want you are welcome to check out. https://www.linkedin.com/in/lidiyagnikolayev/ Let me know if you are willing to answer some more questions.
 
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Background Info: I found this article a few weeks ago; http://www.forbes.com/sites/aaronti...w-ai-chip-and-baidu-partnership/#24a6e86e4f5a , it talked about the Xeon Phi Chip that Intel will be launching sometime in 2017. Nvidia is an interesting company. I actually used their financial statements from Capital IQ in my Industry analysis comparison for this project.
Question: What are some potential problems facing the XEON Phi Chip? Don't have to give me a very specific answer for privacy reasons just a general one will do because I still have to search for articles to coincide with your answer.
 
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Background Info: I found this article a few weeks ago; http://www.forbes.com/sites/aaronti...w-ai-chip-and-baidu-partnership/#24a6e86e4f5a , it talked about the Xeon Phi Chip that Intel will be launching sometime in 2017. Nvidia is an interesting company. I actually used their financial statements from Capital IQ in my Industry analysis comparison for this project.
Question: What are some potential problems facing the XEON Phi Chip? Don't have to give me a very specific answer for privacy reasons just a general one will do because I still have to search for articles to coincide with your answer.

Xeon Phi is Intel's response to GPGPU (general purpose graphics processing unit).

Generally speaking, Xeon Phi's issue is that the most recent Xeon Phi products don't offer the kind of peak performance that's possible with the best GPGPUs from NVIDIA (AMD makes GPUs, too, but they typically haven't been a big player in the areas that utilize GPGPU like HPC, though they say they want to change that).

The advantage Intel claims with Xeon Phi is that it's software compatible with its traditional Xeon processors. The pitch goes something like this, "if you do all of the work to build your software to take advantage of Xeon, then it isn't a big leap to move that workload to Xeon Phi and accelerate it -- a GPGPU will be harder to take advantage of since it's not programmed in the same way as a Xeon/Xeon Phi."

Intel has been selling Xeon Phi chips since late 2012, the chip coming in late 2017 is just another iteration called Knights Mill that's targeted at deep learning applications to better compete with NVIDIA's offerings (though we'll see how successful that is...)
 
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Intel is going through greater restructuring changes then before even the costs are higher in the income statement. I read a lot of employee reviews on Intel more than 500+ in various websites because each employee provides some background information that I can take and move forward with it.
Question: How are the current changes affecting Intel's competitiveness in the industry. Obviously the lay offs saved money but brought new costs into the picture .
Question: What are the obstacles or hurdles Intel is facing after the lay offs?
Question: Intel's perspective into the graphics and gaming industry is positive, but so far Intel is not a graphic supplier like Nvidia, I know that Intel was developing a graphics platform code named Larrabee based on the X86, how has that succeeded or failed?
 
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Xeon Phi is Intel's response to GPGPU (general purpose graphics processing unit).

Generally speaking, Xeon Phi's issue is that the most recent Xeon Phi products don't offer the kind of peak performance that's possible with the best GPGPUs from NVIDIA (AMD makes GPUs, too, but they typically haven't been a big player in the areas that utilize GPGPU like HPC, though they say they want to change that).

The advantage Intel claims with Xeon Phi is that it's software compatible with its traditional Xeon processors. The pitch goes something like this, "if you do all of the work to build your software to take advantage of Xeon, then it isn't a big leap to move that workload to Xeon Phi and accelerate it -- a GPGPU will be harder to take advantage of since it's not programmed in the same way as a Xeon/Xeon Phi."

Intel has been selling Xeon Phi chips since late 2012, the chip coming in late 2017 is just another iteration called Knights Mill that's targeted at deep learning applications to better compete with NVIDIA's offerings (though we'll see how successful that is...)
That's all I have for today, I have to get back to completing another assignment that's due by midnight tonight. Thank you much for taking the time to answer my questions. I will use your answers now to dive deeper into the subject matter so I can come up with a good perspective of what's going on. Have a good evening!
 
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Question: How are the current changes affecting Intel's competitiveness in the industry. Obviously the lay offs saved money but brought new costs into the picture.

The layoffs basically involved Intel pretty much gutting its mobile SoC/platform efforts, and lowering the cost structure of its PC business with typical things like site consolidations, moving to lower cost regions, etc. The "savings" was all pretty much invested in other areas like the Data Center Group, Internet of Things group, memory, etc.

Question: What are the obstacles or hurdles Intel is facing after the lay offs?

They didn't actually reduce their cost structure when you get right down to it, they wound up reinvesting all of it into other areas that they say have the potential for greater growth. Also, big layoffs/restructuring tends to hurt employee morale, and there's always the risk that good people were laid off and are now working at Intel's competition.

Question: Intel's perspective into the graphics and gaming industry is positive, but so far Intel is not a graphic supplier like Nvidia, I know that Intel was developing a graphics platform code named Larrabee based on the X86, how has that succeeded or failed?

Larrabee died. It was unsuccessful as a graphics architecture, so Intel's teams took the basic Larrabee ideas, stripped out the graphics-specific hardware, and reoriented it as a competitor to GPGPU in high performance computing.
 
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The layoffs basically involved Intel pretty much gutting its mobile SoC/platform efforts, and lowering the cost structure of its PC business with typical things like site consolidations, moving to lower cost regions, etc. The "savings" was all pretty much invested in other areas like the Data Center Group, Internet of Things group, memory, etc.



They didn't actually reduce their cost structure when you get right down to it, they wound up reinvesting all of it into other areas that they say have the potential for greater growth. Also, big layoffs/restructuring tends to hurt employee morale, and there's always the risk that good people were laid off and are now working at Intel's competition.



Larrabee died. It was unsuccessful as a graphics architecture, so Intel's teams took the basic Larrabee ideas, stripped out the graphics-specific hardware, and reoriented it as a competitor to GPGPU in high performance computing.
Thanks for the heads up on the Larrabee. You gave me a lot of good advice and things to run with. I will probably ask you some other questions as I develop more complex ones along the way in the couple of weeks. Hope you don't mind, if you do just let me know and I won't bother you.