Interesting thread on Chip domination and Intel..
Intel is “betting the firm” on a massive expansion of production capacity with huge new fabs in Arizona, Ohio, Germany, Poland and Israel.
Intel went from complete domination of advanced semiconductor design & manufacturing to being far behind.
Short 🧵 below on Intel’s fall from tech grace (1/12)
Despite its dominance in the traditional GPU market, Intel missed almost every new massive semiconductor market opportunity.
❌ It missed out on mobile to ARM
❌ It missed out on the AI wave to Nvidia and AMD
❌ It never built a foundry business to compete with TSMC
ARM’s power efficient architecture has given its chips 99% share of the $25bn market for smartphone chips. More than 225 billion chips based on its designs have been shipped (3/12)
TSMC has built the world’s dominant foundry business, manufacturing chips for everyone from Apple to AMD to Nvidia to now even…Intel!
Nvidia’s GPUs are absolutely dominating the market for AI processing, with around 80% of the market. Intel comes a distant fourth in AI chips (5/12)
UBS estimates that ChatGPT requires 10,000 Nvidia chips, one reason why its stock has surged in 2023 while Intel’s has stagnated (6/12)
Intel CEO Pat Gelsinger is now “betting the whole firm” on a massive expansion of manufacturing capacity with new fabs in Ohio, Arizona, Germany and elsewhere in Europe (7/12)
Intel’s decline also has significant geopolitical ramifications.
The world now depends on Taiwan (TSMC) for over 90% of its most advanced semiconductors. The rest come from South Korea (10/12)