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Discussion Intel's past, present and future

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Intel Announces Strategic Investment by Silver Lake in Altera

Intel Corporation today announced that it has entered into a definitive agreement to sell 51% of its Altera business to Silver Lake, a global leader in technology investing. The transaction, which values Altera at $8.75 billion, establishes Altera's operational independence and makes it the...
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Intel is selling 51% of Altera to Silver Lake. They are valuing it at half of what Intel paid when they bought Altera.
 
jpiniero said:
www.techpowerup.com

Intel Announces Strategic Investment by Silver Lake in Altera

Intel Corporation today announced that it has entered into a definitive agreement to sell 51% of its Altera business to Silver Lake, a global leader in technology investing. The transaction, which values Altera at $8.75 billion, establishes Altera's operational independence and makes it the...
www.techpowerup.com www.techpowerup.com

Intel is selling 51% of Altera to Silver Lake. They are valuing it at half of what Intel paid when they bought Altera.
Click to expand...

Silver Lake sounds like an Intel core nickname lol.
Half of what they paid ? So they got back a quarter of their investment. Nice use of ressources, Intel.
 
Thibsie said:
Half of what they paid ? So they got back a quarter of their investment. Nice use of ressources, Intel.
Click to expand...
You left off the profit that was generated in the last 10 years from that group in your calculation.

For example, suppose I buy a stock for $20, get $15 in dividends, and sell it for $10 (half of what I paid). I didn't lose $10 like your simplification is trying to say. I actually gained $5. ($15 + $10 - $20 = $5 gain).

Of course, we'd have to know what the actual Programmable Solutions Group profit was for each of those years to get the true answer.
 
dullard said:
You left off the profit that was generated in the last 10 years from that group in your calculation.

For example, suppose I buy a stock for $20, get $15 in dividends, and sell it for $10 (half of what I paid). I didn't lose $10 like your simplification is trying to say. I actually gained $5. ($15 + $10 - $20 = $5 gain).

Of course, we'd have to know what the actual Programmable Solutions Group profit was for each of those years to get the true answer.
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That's true, but I suppose you should consider inflation as well. Intel bought Altera for 16.9B in 2015 which is the equivalent of 23B in today's dollars, but they are selling 51% of it for 8.75B. That would value Altera at 17.2B, which is ~75% of the value that they acquired it for. If inflation isn't a good metric, the S&P500 went up ~60% between 2015 and today, meaning Altera underperformed the market overall.

Edit: Oh, Jesus H Christ. I must have misinterpreted the article. Altera is valued at 8.75B, and not the 51% is worth 8.75B?? YIKES. Well, it's water under the bridge now, I guess.
 
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You guys are pretty deep in the weeds while overlooking that Intel has a lot of exposure to China on sales, and are going to be hurt worse than other chipmakers by import tariffs. Trumps all stick no carrot approach is going to kill Intel.
 
dullard said:
You left off the profit that was generated in the last 10 years from that group in your calculation.

For example, suppose I buy a stock for $20, get $15 in dividends, and sell it for $10 (half of what I paid). I didn't lose $10 like your simplification is trying to say. I actually gained $5. ($15 + $10 - $20 = $5 gain).

Of course, we'd have to know what the actual Programmable Solutions Group profit was for each of those years to get the true answer.
Click to expand...

From one of the articles:

"Altera generated revenue of $1.54 billion in 2024, a mere 3% of total sales, and posted an operating loss of $615 million."

Which is hard to believe this was truly operating loss, rather than yet another round of "restructuring". BTW, round after round of restructuring, and investment dollars poured into Altera, then the loss on sale of Altera, this turned into one of Intel's costliest mistakes.

No wonder LBT wants to cut it off.

Also, one has to wonder why 51% and not 49%. This means Intel is no longer going to consolidate Altera into Intel financials.

It also means the new owners get to immediately fire the head Intel put in charge of Altera. According to Daniel Nenni, she was not that great.

Intel to sell majority stake in Altera for $4.46 billion to fund revival effort

FILE PHOTO: Illustration shows Intel logo (Reuters) -Intel has agreed to sell a 51% stake in its Altera programmable chip business to buyout firm Silver Lake for $4.46 billion, in the first major move under new CEO Lip-Bu Tan to revive the struggling American chipmaker. (Silver Lake is close...
semiwiki.com
 
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"I want to roll up my sleeves with the engineering and product teams so I can learn what’s needed to strengthen our solutions," Tan wrote. "As Michelle and I drive this work, we plan to evolve and expand her role with more details to come in the future."
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That's what was needed from Pat but he was too dumb to understand that Intel badly needed this.
 
In recent years, Intel's executive team had included many business unit leaders, with technical leaders often layers below the CEO. Tan's memo said three longtime technical executives - Rob Bruckner, Mike Hurley and Lisa Pearce - will now report to Tan.
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Ah, so now she possibly becomes the GPU division head.
 
"I want to roll up my sleeves with the engineering and product teams so I can learn what’s needed to strengthen our solutions," Tan wrote. "As Michelle and I drive this work, we plan to evolve and expand her role with more details to come in the future."
Click to expand...

Sounds like he is setting up Michelle to take the fall if it doesn't work out.
 
Krzanich is a genius! 10nm+++++++ is his magnum opus

Once CEO always CEO, the mass firings are the aftereffects of his decisions

from wikipedia:

Screenshot 2025-04-23 235143.png

i.e. Right at the point where Intel had a Massive #1 CPU advantage, take the reins and do everything else EXCEPT CPUs 👏
 
nope, all they needed was to just keep their 2013 massive cpu advantage and just make cpus of all sizes (the only other relevant investment is gpu). the wikipedia quote shows Krzanich just followed empty marketing trends without understanding his own business in the first place.

losing advantage + super aggressive market = game over, they're scrambling now
 
fastandfurious6 said:
nope, all they needed was to just keep their 2013 massive cpu advantage and just make cpus of all sizes (the only other relevant investment is gpu). the wikipedia quote shows Krzanich just followed empty marketing trends without understanding his own business in the first place.
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They only had a massive CPU advantage because there wasn't PC volumes of dollars flowing into mobile architectures before. And they don't have an advantage now because there aren't mobile volumes of dollars flowing into PC architectures.

And in 2013, their architecture was already darn crusty.
 
johnsonwax said:
They only had a massive CPU advantage because there wasn't PC volumes of dollars flowing into mobile architectures before. And they don't have an advantage now because there aren't mobile volumes of dollars flowing into PC architectures.

And in 2013, their architecture was already darn crusty.
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They stopped being paranoid

They were comfortably ahead of global foundries (& bulldozer)

But starting jaguar, bobcat (& zen) AMD pulled ahead with TSMC partnership
 
johnsonwax said:
They only had a massive CPU advantage because there wasn't PC volumes of dollars flowing into mobile architectures before
Click to expand...
Mobile was probably the biggest segment for all of the 2010s. If anything the reason why intel stuck on ever shrinking quad core CPUs while enlarging iGPUs was entirely due to mobile being their prime motivator. Other than margins of course.

marees said:
But starting jaguar, bobcat (& zen) AMD pulled ahead with TSMC partnership
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No, only with zen, and regardless the first two generations were literally made by glofo and until zen 4 every desktop ryzen product had a glofo fabbed IOD.

Also isn't this supposed to be an intel thread?
 
Like at this point it should be clear to all of us that fabs are only one part of the entire equation. The progression from pentium to core, or bulldozer to zen, both exemplify how its design that really drives the overall performance. Design does have to consider the nodes available yes, but ultimately from a physics standpoint, there's only so many ways to get work done and speed is something you measure. You don't assume the top value of a gauge is the actual performance for most things in life.

Intel has had a massive middle management problem for a while now, and it continues to show. The fact that 13/14th gen chips had degradation issues, and the delay in getting angstrom chips out just goes to show that PG didn't fix the core problems. I truly believe intel has good engineers, good fabs, good designers, but something else is preventing everything from mixing coherently.

I really hope the company gets it together because a world where intel chips are way slower and hotter than the competition is very sad to me. If anything we're quickly approaching an age where intel GPUs are the real gangbuster and most people will be paring them with AMD CPUs, a complete population inversion of just 15 years go. And yet another symptom of total mismanagement.
 
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