Intel planning for thousands of job cuts, internal sources say

[Dresdenboy]

It would be somewhat odd if you dont see AMD announce layoffs on the 21st.

Toshiba axed 14000.
Intel axed 12000.
IBM axed a minimum of 14000.

Yes, it would be odd.

 

[ShintaiDK]

Supposedly at least $300 million:

http://www.wsj.com/articles/amd-to-license-chip-technology-to-china-chip-venture-1461269701

Yes, over the entire period. We are talking several years with milestones that have to be reached.

 

[Adored]

Not really. It looks to be a revolver deal unfortunately.

AMD will get 29M$ from it in Q2. Assuming they hit the milestones in technology transfer.

Looks like an IP deal with royalties upon shipping so free cash basically, around $100m per year or thereabouts.

 

[ShintaiDK]

Yes, it would be odd.

Their headcount keep declining.

Just because its not in the press doesn't mean its not happening.

 

[ShintaiDK]

Looks like an IP deal with royalties upon shipping so free cash basically, around $100m per year or thereabouts.

You have a funny definition of free money. From the CFO:

Meaningful step in IP monetization strategy by licensing high-performance processor and
SoC technology and forming joint venture (JV) with THATIC (Tianjin Haiguang Advanced
Technology Investment Co., Ltd.), to develop SoCs that will complement AMD’s own
offerings for the China server market

And here I thought it was better to sell an AMD product than to get a small fee from a 3rd party product. Not to mention if milestones isn't reached, no money is paid.

 

[jpiniero]

Huh, I guess China is interested in x86. Kind of surprised the agreement with Intel would allow for something like this. I wonder if Intel will fight it.

 

[Adored]

You have a funny definition of free money. From the CFO:



And here I thought it was better to sell an AMD product than to get a small fee from a 3rd party product. Not to mention if milestones isn't reached, no money is paid.

And how much is AMD making in the Chinese server market today?

 

[ShintaiDK]

And how much is AMD making in the Chinese server market today?

I see yo have as much confidence in Zen and their ARM offerings as others. Good point.

 

[ShintaiDK]

Huh, I guess China is interested in x86. Kind of surprised the agreement with Intel would allow for something like this. I wonder if Intel will fight it.

Is it even certain it will be x86 and not ARM? I haven't seen the details yet on the technology transfer.

 

[positivedoppler]

wow AMD licensing x86 to the Chinese. If this is somehow legal, Intel you are royally F'ed. They are under siege from all sides. PC market shrinking, everyone's making a move into the server market, and mobile is stuck in quicksand. Sad to say, but it will get really ugly for Intel in the next few years and I don't see any way out for them.

 

[ShintaiDK]

For the entire year, they only expect to gain 52M$.

IP monetization licensing gain of approximately $52 million, with $7 million already recognized in Q1 2016.

So with 25M$ in Q2. That leaves 20M$ for Q3 and Q4 combined.

 

[jpiniero]

Is it even certain it will be x86 and not ARM?

I'd have to think so. K12 is more or less dead.

 

[ShintaiDK]

wow AMD licensing x86 to the Chinese. If this is somehow legal, Intel you are royally F'ed. They are under siege from all sides. PC market shrinking, everyone's making a move into the server market, and mobile is stuck in quicksand. Sad to say, but it will get really ugly for Intel in the next few years and I don't see any way out for them.

They are still untouchable in the server space for good reason. They are far ahead on all metrics. So any competitor will have to put some serious cash into it. Not to mention quite some years. Even if you start today with "unlimited money". The first product from the ground will come out around 2021.

 

[ShintaiDK]

I'd have to think so. K12 is more or less dead.

The uncore and interconnects got value too.

 

[Sweepr]

AMD just posted their worst quarter. 832M$ revenue, 109M$ loss.

Down 19% YoY.

Semicustom revenue is hit hard.

Deserves a new thread.

 

[ShintaiDK]

​

Ouch.

China is putting a bunch of hurt on all over the world.

Its way beyond China. Its the zero rates and QE that hurts. Long live finance capitalism, RIP production capitalism.

All shipping companies are in deep trouble too.

 

[Adored]

This is just free money using AMD's IP and the paranoia of the Chinese government. Chinese-built Zen cores with no backdoors basically. There is no competition from outside, nor from Zen.

 

[positivedoppler]

Google's going with IBM and Nvidia. Qualcomm you have to take seriously. The Chinese are more than willing to make a deal with AMD for obviously security reasons. Writings all over the wall, stick a fork in it, Intel's done. There's no saving them.

 

[ShintaiDK]

This is just free money using AMD's IP and the paranoia of the Chinese government. Chinese-built Zen cores with no backdoors basically.

That would be interesting for 2 parts. Intel and US technology export restrictions.

 

[ShintaiDK]

Google's going with IBM and Nvidia. Qualcomm you have to take seriously. The Chinese are more than willing to make a deal with AMD for obviously security reasons. Writings all over the wall, stick a fork in it, Intel's done. There's no saving them.

IBM is a goner long ago. Qualcomm is struggling for survival now in the MPU section. I have a feeling their days of custom cores is soon, if not already over. Google is buying Intel and Nvidia, just like Baidu, Facebook, Microsoft, Amazon etc.

 

[MiddleOfTheRoad]

They are still untouchable in the server space for good reason. They are far ahead on all metrics. So any competitor will have to put some serious cash into it.

Sure, guy. Sure....

To everyone else -- Many of us have probably noticed that Non-x86 CPU's are hovering around 95% marketshare of High End Servers and 80% of Mid Range Servers.

Intel only sells mostly cheap **** in the server space. Granted, the below chart is a little old (about 4 years old). But still, Intel/x86 is nowhere to be found in the truly expensive segments when you look at the current installed base.

 

[Dresdenboy]

Their headcount keep declining.

Just because its not in the press doesn't mean its not happening.

Yes, such things might happen. You surely have some numbers exceeding typical fluctuation to support your statement.

That would be interesting for 2 parts. Intel and US technology export restrictions.

Su just answered that in the first question. So it looks like the deal only involves AMD IP and technologies, and doesn't violate the crosslicensing agreement. The involved tech is used in x86 and ARM products as it seems.

To complete the licensing, THATIC might have to license Intel IP, too.

 

[ShintaiDK]

Sure, guy. Sure....

To everyone else -- Many of us have probably noticed that Non-x86 CPU's are hovering around 95% marketshare of High End Servers and 80% of Mid Range Servers.
Intel only makes cheap **** in the server space. Granted, the below chart is a little old (about 4 years old). But still, x86 is nowhere in the expensive segments.

Do you even know what you link?

Its from 2011 in case you forgot the date.

Let me help you with the other part that belongs to it.

Oh, and the source:
http://jameskaskade.com/?p=1789

 

[frozentundra123456]

AMD just posted their worst quarter. 832M$ revenue, 109M$ loss.

Down 19% YoY.

Semicustom revenue is hit hard.

Wow Shintai, stock is up 25% on the "worst quarter" data. I think that is clearly an over-reaction, but they seem to be moving in the right direction in a lot of areas.

 

[ShintaiDK]

Wow Shintai, stock is up 25% on the "worst quarter" data. I think that is clearly an over-reaction, but they seem to be moving in the right direction in a lot of areas.

Its based entirely on future hopes. You know, how stocks work

Also if I was you, I would see if it sticks or drops again.

For Q2 2016, based on a 13 week quarter, we expect:
• Revenue to increase 15% sequentially, +/- 3%, driven by strong demand for our semi
custom and graphics products.

This is the driver. Plus the 320M$ from ATMP joint venture completion.