Intel's head of manufacturing announces departure

FIVR

Diamond Member
Jun 1, 2016
3,753
911
106
No replacement has been announced. This guy was slated to be the next CEO. With the recent (and abrupt) departure of Intel's head engineer Francois Piednoel I think this is a very bad sign for Intel. At least one analyst appears to agree with me....

http://www.barrons.com/articles/int...03522075?mod=yahoobarrons&ru=yahoo&yptr=yahoo

As mentioned earlier, Intel's (INTC) head of manufacturing, Stacy Smith, a 30-year company veteran, is retiring in January, and while there hasn't been a lot of commentary since the announcement last night, the commentary so far is not positive.

In addition to RBC's Amit Daryanani, Rosenblatt Securities chip analyst Hans Mosesmann is not encouraged by the development, calling it "highly negative" for Intel.

"The update is unsettling," writes Mosesmann, who has a Sell rating on Intel shares, "given Mr. Smith was in direct line-of-sight to be the next CEO of Intel, and it is after the announced leave of absence of Diane Bryant, head of the data center unit back in May."


Mosesmann professes to be "surprised at the relative silence by the street on this organizational change at Intel, particularly since Mr. Smith has not ended his professional ca- reer by any means."

This is ominous for the chip maker, he suggests:

Our take – The notion forwarded by some that the timing of Mr. Smith’s depar- ture (with no apparent replacement) is not related to Intel’s business is, dare we say, naïve. Nothing happens in the Valley at this level by happenstance. The departure is highly negative for Intel and suggests an organization that is in flux in the midst of the most important opportunities and threats in the company’s history.

Intel shares traded up a penny to close at $34.66, and were down two cents in late trading.
 

scannall

Golden Member
Jan 1, 2012
1,946
1,638
136
  • Like
Reactions: lightmanek

FIVR

Diamond Member
Jun 1, 2016
3,753
911
106
I think Hector Ruiz is still looking for work. Intel should grab him up. ;-)

LOL. I found this article from 2013 that says Hector was giving Brian Kraznich advice on how to run his company. Looks like he took those lessons to heart, and now Intel is the one who will be spinning off their fabs. Maybe in 2025 they can have a comeback like AMD, haha. Probably need a new CEO, though. Maybe Lisa Su will be available? I hear she's great with that kind of thing.

https://www.bloomberg.com/news/articles/2013-03-20/amds-former-ceo-has-advice-for-intels-next-ceo
 

CHADBOGA

Platinum Member
Mar 31, 2009
2,135
832
136
No replacement has been announced. This guy was slated to be the next CEO. With the recent (and abrupt) departure of Intel's head engineer Francois Piednoel I think this is a very bad sign for Intel. At least one analyst appears to agree with me....

http://www.barrons.com/articles/int...03522075?mod=yahoobarrons&ru=yahoo&yptr=yahoo

On the contrary, with all the problems Intel has had with its manufacturing processes in recent years, to change nothing would be a very bad sign.

Clearly Intel is showing it is serious about trying to get the right people into the key positions.
 
  • Like
Reactions: Arachnotronic

jpiniero

Lifer
Oct 1, 2010
14,688
5,318
136
I would not be surprised if 7 nm is a dumpster fire but that's what EMIB was supposed to mitigate.
 

FIVR

Diamond Member
Jun 1, 2016
3,753
911
106
On the contrary, with all the problems Intel has had with its manufacturing processes in recent years, to change nothing would be a very bad sign.

Clearly Intel is showing it is serious about trying to get the right people into the key positions.

This is true, and a good point. I don't really know how competent this man was at his position, but he must've done a decent job for a good amount of time (he was there for 30 years). That said, perhaps he wasn't performing up to snuff or just didn't have his heart in the game.


I thought the departure of Francois Piednoel was actually a benefit to Intel long term, even if it appeared to be an indication of strife within the company. Perhaps this is also a long term benefit too. I figured they would get rid of BK before anybody else, he really is a terrible CEO.
 

CHADBOGA

Platinum Member
Mar 31, 2009
2,135
832
136
This is true, and a good point. I don't really know how competent this man was at his position, but he must've done a decent job for a good amount of time (he was there for 30 years). That said, perhaps he wasn't performing up to snuff or just didn't have his heart in the game.


I thought the departure of Francois Piednoel was actually a benefit to Intel long term, even if it appeared to be an indication of strife within the company. Perhaps this is also a long term benefit too. I figured they would get rid of BK before anybody else, he really is a terrible CEO.
I couldn't agree more with you about BK. :mad:

Whilst it has been obvious for a few years now that there has been some serious problems with Intel's execution in various areas, what has really hardened my view about the extent of these problems is seeing how AMD on a shoestring budget, could produce a product like Ryzen, which is so close in many areas, to Intel's best CPU's.

How lucky is Intel at the moment that AMD is hamstrung by an inferior process?
 
Mar 10, 2006
11,715
2,012
126
I couldn't agree more with you about BK. :mad:

Yes, BK really is poor CEO, the worst in Intel's history. The shame is that everyone gives him credit for Intel's "turnaround" but the reality is that the PC market has stabilized since he took over and the other parts of the business that were already firmly in place kept growing.
 
  • Like
Reactions: Intervenator

ehume

Golden Member
Nov 6, 2009
1,511
73
91
Maybe after 30 years the guy is burning out. After all, they need top-performing people.
 

FIVR

Diamond Member
Jun 1, 2016
3,753
911
106
How lucky is Intel at the moment that AMD is hamstrung by an inferior process?

Incredibly lucky, and they still have this advantage. If they were able to move to 10nm this year (and it performed well) they would be well ahead of AMD with little chance of them catching up.

I believe the final outcome really all depends on how AMD executes with 2nd generation Ryzen and how that compares to intel 14nm ++ and 10nm+. If intel can retain their process advantage they can turn this around.


Right now, IMO, it doesn't look very good.... but we'll have to wait and see.
 

raghu78

Diamond Member
Aug 23, 2012
4,093
1,475
136
I couldn't agree more with you about BK. :mad:

Whilst it has been obvious for a few years now that there has been some serious problems with Intel's execution in various areas, what has really hardened my view about the extent of these problems is seeing how AMD on a shoestring budget, could produce a product like Ryzen, which is so close in many areas, to Intel's best CPU's.

How lucky is Intel at the moment that AMD is hamstrung by an inferior process?

This is what is saving Intel in 2017. But I would not count on it for the future. GF has a very poor track record compared to Intel and TSMC. GF botched up 14nm and had to license 14LPP from Samsung. But things might be turning around. GF has benefited from the IBM semiconductor acquisition and have a leading edge foundry process at 7nm. GF 7LP looks promising as it has been designed from the start with very high performance as the goal. GF will be the second foundry to go into volume production at 7nm behind TSMC and ahead of Samsung. We could see a perfect storm with Intel slipping at 10nm and the foundries executing well at 7nm. Intel's process lead is pretty much over. TSMC N7 will starting churning out 7nm Apple Ax chips in Q2 2018 , roughly the same time when Cannonlake starts to ramp. Icelake at 10+ might launch in Q4 2018 if things go well. If Intel has any more slips in execution we could see it come out at roughly the same time as 7nm Ryzen which is looking to arrive in Q2 2019 I am really looking forward to see Intel 10+ Icelake vs GF 7LP Ryzen. That is the first time in almost 2 decades that AMD might have a process go toe-to-toe with Intel giving AMD its best shot at challenging Intel. I am also curious to see who has the first desktop CPU to hit 5 Ghz (max single/dual core turbo) at stock. :)
 

FIVR

Diamond Member
Jun 1, 2016
3,753
911
106
For whom does it not look very good? Intel or AMD?

Intel. The difficulties and delays with 10nm indicate (IMO)that they are having problems getting the requisite performance out of the new node, which doesn't bode well for taking down AMD and 2nd gen Ryzen.
 
Mar 10, 2006
11,715
2,012
126
Is this adding more to the momentum that Venkata Renduchintala will become the next CEO? Perhaps Intel is recognizing that its internal culture and leadership has become stagnant and will be leveraging more on external talent infusion, and that side is slowly winning the argument against the existing old guard.

http://www.businessinsider.com/intel-increasing-outside-hires-2015-12

Murthy seems to be the driving force behind a lot of the improvements in some areas of Intel's execution. I don't think Intel would've done a Kaby Lake Refresh were it not for him, for example.
 
  • Like
Reactions: CHADBOGA
Mar 10, 2006
11,715
2,012
126
Smith probably left because he wants a CEO position somewhere and that ain't happening at Intel anytime soon.
 

PingSpike

Lifer
Feb 25, 2004
21,733
564
126
Intel should use its diversity initiative to fire Brian Krzanich and replace him with a competent woman.
 
Mar 10, 2006
11,715
2,012
126
It's difficult to do better than BK :D.

You misspelled "worse". Under his leadership, Intel wasted billions on mobile and then bailed with nothing to show for it. Wasted time going after embedded micro controllers with Quark, and also things like Basis and drones.10nm is a big mess, indicating that BK didn't authorize the proper investment levels to get 10nm out the door on time.


He is being saved by the fact that other more competent leaders built an organization that could withstand such serious lapses in judgement.
 
Last edited:
  • Like
Reactions: NTMBK and FIVR

inf64

Diamond Member
Mar 11, 2011
3,706
4,050
136
You misspelled "worse". Under his leadership, Intel wasted billions on mobile and then bailed with nothing to show for it. Wasted time going after embedded micro controllers with Quark, and also things like Basis and drones.10nm is a big mess, indicating that BK didn't authorize the proper investment levels to get 10nm out the door on time.


He is being saved by the fact that other more competent leaders built an organization that could withstand such serious lapses in judgement.
Not to mention Mcafee adventure... Wtf was that all about?
They have a chance to finally get the right people in key positions (except the CEO, that guy seems irreplaceable), let's see how it goes.
 
  • Like
Reactions: Kuosimodo