As Intel seeks to recover from its most recent financial difficulties, there is speculation about the possibility of the company separating itself from its chip manufacturing segment. The pressure has increased following the recent split of Intel Foundry as an independent subsidiary. However, a former CEO of the company published an entire article to warn that he considers this a bad idea.
The text appeared in Fortune and was written by Craig Barrett, who led Intel from 1998 to 2009. He compares the idea of ​​separating Intel’s central axis from its Foundry division with what AMD did when it created GlobalFoundries in 2008 Barrett goes further, stating that this would be harmful not only to Intel, but to the United States as a whole.
The former executive’s main focus in his argument is the importance of research and development (R&D), and the costs involved in this. He says that major companies will always turn to manufacturers with the most advanced technologies for their chips, and that a separate division of Intel Foundry would not have the strength to compete with Samsung and TSMC.
According to Barrett, this is what happened with GlobalFoundries. Without the ability to invest in R&D, the company was unable to compete with the competition. As a result, his low income gave him even less money to invest in research.
Weakening Intel could harm the US, says Barrett
Barrett’s article for Fortune goes further in its alarmist tone when it highlights the consequences that this division of Intel could have for the United States. Thus, the former CEO argues that the weakened Intel Foundry would mean that the country would only have foreign companies to turn to in the production of the most advanced chips – Samsung and TSMC.
Therefore, the businessman praises the CHIPS Act and says that the government needs to invest even more in its semiconductor companies. But not only that, Barrett says that investment in R&D should go to universities too, in academic research.
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He highlights the establishment of the National Semiconductor Technology Center (NSTC) as a positive initiative. However, it demands more investment, highlighting that the five-year budget for the NSTC corresponds to one year of Intel’s investment in R&D.
Via: Tom’s Hardware
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Source: https://www.adrenaline.com.br/intel/ex-ceo-da-intel-diz-que-uma-divisao-seria-ruim-para-a-empresa-e-para-os-eua/
