I was looking at net worth of Frank Yeary and it's not even $10 million. What is this guy doing making such important decisions for thousands of people in the company and the millions globally who rely on Intel products??? One would think that they could find someone with a lot of money to be chairman of the board because then that guy would at least have some idea on how the company could be run profitably. He seems like some small fish with accompanying narrow mind and his attempts (trying to sell off the fabs) seem like he is dying to get the commission on the deal.
He is paid $500k per year by Intel and he has been sitting at Intel for years lol since 2009
Sounds like one of my company's board member who was responsible for destroying other companies in the group but they can't get rid of him probably due to his past accomplishments so now he's focused on destroying my company. Intel shareholders are dumb if they don't ask to replace the entire board. These people are as much responsible as the past CEOs.
Win2012R2
Golden Member
- Dec 5, 2024
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I don't like going above 64 cores, my personal fav right now is 9575F, prices seems to have dropped to much more reasonable levels now for this top end model
Biggest threat is political instability that is bound to cause world recession or worse
Private equity is making investments for three possible reasons. One, they think a business is viable enough that if well managed over time it will make them enough profit to pay back the initial investment plus their internal risk assessed target return. That's the Warren Buffett strategy - I know people don't think Berkshire Hathaway when they think of private equity, but it is in essence a publicly traded private equity firm. When he buys a railroad or utility he's buying it to own it and to run it for the long term. It is also a hedge fund (which private equity firms also often double as) with its investments into Amex, Coca Cola, Apple and other stocks.
Two, they think that a business can be "flipped" - it needs an injection of resources and/or improved management up front to turn it around, when it can be "re-IPOed" and go back to being a publicly traded stock. This is the "friendly" corporate takeover strategy - though in some cases might still technically be a "hostile" takeover. Again paying them back plus the risk based return.
Three, they think that a business can be "parted out", that the value of its subsidiaries and/or assets in the form of buildings, land, IP, etc. is worth more than the stock price. This is the one everyone fears, because it means pretty much everyone loses their job, and in the past sometimes even their pension, and the places they operate might take a heavy hit to their tax base.
So of those the last is the only one you really need to be afraid of, but that's simply not a viable option with Intel. They are already selling off most of their subsidiaries / sideline businesses, and their assets have far less value when not part of a going concern. You'd get pennies on the dollar selling fab buildings, because there are only two potential customers for a leading edge fab but they don't really want a fab building that's designed (and location chosen) by someone else unless it is acquired at a massive discount. Equipment like EUV scanners have value, but the cost of moving them is high. Intel's IP has value, but I'd imagine the most valuable stuff is already covered by cross licensing to TSMC & Samsung.
So I wouldn't worry about private equity. If they did swoop in that might be the best thing for Intel, since they haven't exactly done a bangup job of managing themselves over the past 5-10 years.
Oh dear. You have fallen for meritocracy - this guy must suck because that other guy has more money.
You don't have to have a zillion dollars to be smart. None of the guys on the Manhattan project were rich, nor were the people who put men on the moon. They were pretty modest government employees. Warren Buffet is very clear that he doesn't really know how to run any of the businesses in his portfolio.
As 511 informed, that guy's been paid $500K since 2009 for helping Intel fail. If he were that smart, he would've gotten his own net worth up a bit.
So pretty OT, but you're a Mod...
The moment the US finds itself in (and the UK) which is consuming everything else within our borders is that back in the 80s we embraced this utopian notion (neoliberalism) that markets could be tuned to be a perfectly functioning machine, largely free from government interference, that would produce prosperity because computers could now measure economic performance and models built to find the Pareto optimal set of decisions to make and executives would then do that and everything would stay in equilibrium. Our political parties swallowed that idea along with most of our corporations. And it turns out, that notion isn't correct for a whole host of reasons, not the least of which is that other countries don't need to sign onto that utopian idea and operate that way. This is why the US accuses other countries of cheating because they never signed on. Taiwan puts a lot of government intervention around TSMC. Less money now, but they build infrastructure, they help ensure talent can be hired, they help ensure adjacent industries are supporting rather than undercutting TSMC, etc. China is doing the same thing. Japan did as well, and South Korea as well.
Intel is trying to operate in this supposedly hands-off economy where Taiwan and TSMC are hands on. They aren't seeking market equilibrium through some mathematical model, they're seeking it by having the government support the company. And the US doesn't do that. We were able to go so far as a quasi-competitive grant model in the CHIPS act, but you don't see the government doing any of the things I've suggested - let's steer DOD dollars to ensure we have leading node ITAR production, let's have the fabless US companies take a stake in Intels success, etc. That's all anathema to the US, but that's precisely what China or Taiwan would do.
There really isn't anything that Intel can do to fix this because the US has this flawed economic ideology that both Democrats and Republicans have pursued for decades. Trump is breaking from that ideology, but in a bad way - creating a fascist command and control economy around markets where he can call for CEOs to step down arbitrarily, he can dictate how they do their hiring, what shows they put on the air, favor or punish using tariffs based on if they give him the right bauble or not, and so on. Intel was pretty screwed a year ago under the previously mostly hands-off economic philosophy and they're totally screwed now with the hands-on fascist one unless they can replace the CEO with someone out of Trumps central casting playbook to go give him the right bauble that will get him to do a sensible interventionist policy around the company (which I would argue Trump is unable to do because while his policies do seem to vaguely resemble some good economic policies they are so poorly implemented that they undermine that goal and wind up just being personal wins and losses on a board).
Vulture capitalism is the natural byproduct of a hands-off economic system with a belief that markets will find equilibrium, because those individuals aren't interested in finding equilibrium, they're interested in getting infinitely wealthy. They just aren't on board with the plan, and the philosophy assumes everyone is on board with the plan (this is why Soviet style communism failed as it was the same utopian ideology but surrounding workers and the politburo creating a perfect economic plan, rather than mathematical economics doing that.) China escaped that trap somewhat by giving capitalism a go, but only where it was beneficial to the government, and reserving the right to execute the vulture capitalists if they strayed from the plan. So Intel isn't doing vulture capitalism so much as they're recognizing the systemic economic failure of the US the same as all of the other fabless companies have done - spin off the x86 business as a fabless one, since we know that can work, strip the foundry business back to only that which can make money and hope that someone finds utility in it. It's an admission that the volume of the design business isn't sufficient to prop up the foundry, and that the foundry isn't stable enough to bring in the scale of customers needed to keep it profitable, and it needs a non-market solution to save. Maybe the feds, maybe someone like Apple who has that kind of cash will see some non-economic benefit. It's not like it's a different decision that what AMD made when they yeeted GF off, Intel was just bigger and could survive the ship leaking for longer.
Basically they're just screwed. I suspect the highly interventionist Trump admin isn't smart enough to salvage this. And I'm skeptical the Democrats have realized that their (and the GOPs) economic philosophy has completely failed and are wiling to embrace a new one - though Warren seems to have recognized it, and so even if Intel can keep the foundry afloat to 2028 and Democrats get elected, my guess is they're not going to come in with a radical new economic vision. Maybe this will go sideways badly enough that they can get there, but I suspect that would also serve to kill Intel in the process.
As someone with a net worth in his category, not everyone is wired to chase infinite money. For most people, the thing that gets them out of bed is helping people or solving a problem or creating something new, and once you have enough money, you can just ignore money and set your mind on the thing you care about.
fastandfurious6
Senior member
- Jun 1, 2024
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broadcom acquisition = 100% death scenario 🤣 they'll do smth completely insane like force every intel cpu owner ever to pay monthly licence retroactively lmao... intel cpu connects to internet? PAY! drain every penny at expense of any viable tomorrow
the timeline is heavily affected by the Trump effect, noone knows what will happen bc trump has virtually ultimate dictator powers and can do whatever he wants
but I know.... US foundries plan sounds likely
the timeline is heavily affected by the Trump effect, noone knows what will happen bc trump has virtually ultimate dictator powers and can do whatever he wants
but I know.... US foundries plan sounds likely
So this is the 'some non-economic benefit' I alluded to above. I could potentially see Apple doing it as a hedge against tariffs/currency/etc. depending on where they see the macroeconomic winds blowing. It wouldn't save them money, but it would mitigate certain kinds of risk. But it wouldn't solve any of the problems anyone here is looking to solve.
The other choice would be Tesla as an AI play who could also pick up SpaceX as a customer provided the latter took on a larger defense contractor role, or maybe Tesla does anyway given some subset of investors have already decided that making cars is dragging the company down. All of the US DOD AI dreams depend on having a domestic manufacturer and I'm not sure Nvidia in an Arizona TSMC plant will cut it. They can always make that exception, but may not want to.
Regarding my economic observation above: AMD and Nvidia have agreed to pay the US a 15% export tariff on chips (H20/MI308) sold to China. Note, these would violate restrictions on sale to China if made in Taiwan and must be made in the US. This has nothing to do with China's ability to acquire the technology and everything to do with keeping money in the country. This is a complete reversal of the historical free trade/low regulation economic philosophy. Intel needs to figure out how to operate in this space and one way would be to suggest to the administration similar invented-out-of-whole cloth sanctions to place on other countries that would force customers into Intels hands which they could then blackmail companies into paying to export.
Phoronix reports more cutting on the Linux engineering part:
I'm more convinced that Tan is here to break down Intel. They aren't firing just middle managers, if anything they are doing anything BUT that. Plus the 50% margin comment is cringe. Little strength that made Intel what they are is being broken down.
Additional Intel Linux Drivers Left Orphaned & Maintainers Let Go - Phoronix Forums
Phoronix: Additional Intel Linux Drivers Left Orphaned & Maintainers Let Go Well, it's an unpleasant afternoon in Linux land with more signs of the ongoing impact from Intel's corporate-wide restructuring. Just after writing about Intel's CPU temperature monitoring driver now left...
www.phoronix.com
I'm more convinced that Tan is here to break down Intel. They aren't firing just middle managers, if anything they are doing anything BUT that. Plus the 50% margin comment is cringe. Little strength that made Intel what they are is being broken down.
That's pretty much what I was saying. Intel Products has a future, but Tan is killing that to keep the Fabs going for a couple extra years.
Thunder 57
Diamond Member
- Aug 19, 2007
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Please if he was an ultimate dictator things would lookd very different and not in a good way for the vast majority. He just happens to be term limited and doesn't give a crap about his legacy.
You realize these things don't happen overnight. And you seem more certain he's termed limited than he does.
Thunder 57
Diamond Member
- Aug 19, 2007
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He is always saying crazy shit like Canada being the 51st state or taking over Greenland, it's all stupid talk. He likes to be in the spotlight. Even if he did want to run again anyone who believes he would be allowed to do so is a simpleton. I heard a woman on a show saying he should be "awarded" (no joke) a third term because "he got screwed over in his first term". I don't know how these people tie their own shoes.
To "chase infinite money" you have to be wired to enjoy risk, and the stress it brings. I am quite well off (enough that I was able to retire at 51) but had a couple opportunities in the past decade where I could have become REALLY well off - well into the territory of eight digit net worth. LONG story short I had an opportunity for investment in something that would produce huge returns. It was on the up and up, I knew the person involved and he'd inherited some property in Chicago with specific rights attached to it that allowed it to be developed into something far more than what it was. He just didn't have the capital, so he was seeking a few large investors to make it happen. While I liked the idea of making a huge pile of money I knew that despite everything looking good (I got as far as spending $25K to have an attorney check into everything) there's always the chance something goes wrong. I went back and forth but once I thought to myself "just the act of DECIDING whether to do this is stressing me the hell out, how stressed am I going to be if I pull the trigger?" I knew I didn't want to do it. Turns out nothing went wrong, I would have made a helluva lot of money if I hadn't passed.
Then I had ANOTHER opportunity for basically the same thing - his sibling (who I actually was closer to of the two of them) had inherited the other half of the property and based on his brother's success was preparing to do essentially the same thing. Again I passed, for the same reasons, though it was a harder decision due to the nagging sense of having missed out last time. This time was a different story though. Covid hit, caused all sorts of chaos in the timelines, but unfortunately the worst thing was the sibling who had inherited the property dying from covid shortly before his 50th birthday. His children and ex-wife have been fighting in court over his will ever since and while it may still work out once that's settled it will be a FAR longer timeline than planned. That's a lot of stress I would have been under for five years and counting, simply due to the size of the investment compared to my net worth. If the added stress ended up shortening my life and making day to day life less enjoyable there's no amount of money that's worth it.
Thunder 57
Diamond Member
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I am well aware of January 6th. Like I said there are lots of stupid people out there. That also includes people who think Trump won't leave office. He will leave or be booted out. He is term limited. Fact.
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