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US Intel

(stratechery.com)
539 points maguay | 2 comments | | HN request time: 0.444s | source
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themgt ◴[] No.45026515[source]
I’ll be honest: there is a very good chance this won’t work .... At the same time, the China concerns are real, Intel Foundry needs a guarantee of existence to even court customers, and there really is no coming back from an exit. There won’t be a startup to fill Intel’s place. The U.S. will be completely dependent on foreign companies for the most important products on earth, and while everything may seem fine for the next five, ten, or even fifteen years, the seeds of that failure will eventually sprout, just like those 2007 seeds sprouted for Intel over the last couple of years. The only difference is that the repercussions of this failure will be catastrophic not for the U.S.’s leading semiconductor company, but for the U.S. itself.

Very well argued. It's such a stunning dereliction the US let things get to this point. We were doing the "pivot to Asia" over a decade ago but no one thought to find TSMC on a map and ask whether Intel was driving itself into the dirt? "For want of a nail the kingdom was lost" but in this case the nail is like your entire metallurgical industry outsourced to the territory you plan on fighting over.

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georgeburdell ◴[] No.45026847[source]
If I may add my view as a formerly high-achieving semiconductor worker that Intel would benefit greatly from having right now, a lot of us pivoted to software and machine learning to earn more money. My first 2 years as a software engineer earned me more RSUs than a decade in semiconductors. Semiconductors is not prestigious work in the U.S., despite the strategic importance. By contrast, it is highly respected and relatively well remunerated in the countries doing well in it.

From this lens, the silver lining of the software layoffs going on may be to stem the bleeding of semiconductor workers to the field. If Intel were really smart, they’d be hiring more right now the people they couldn’t get or retain 3-5 years ago

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packetlost ◴[] No.45027292[source]
If Intel were well managed they would purge like 2/3rs of the managers and anyone in the bottom 50th percentile and then pay whatever it takes to get people skilled in their core industry back, training the remaining people as necessary to fill in gaps for the future.

They literally cannot have a culture that encourages the now-traditional job hopping that is so pervasive in American business culture. They can't afford it.

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freeopinion ◴[] No.45028236[source]
Who gets to determine the bottom 50th percentile?
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packetlost ◴[] No.45029383[source]
it doesn't really matter as long as you retain the top 10% who do 90% of the work.
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willhslade ◴[] No.45029920[source]
I think you glossed over the question
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packetlost ◴[] No.45029990[source]
Generally, the answer is management via performance reviews.
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willhslade ◴[] No.45030173[source]
So current management, who had proven incapable of running a business, will be trusted to ignore past political games and just retain talent? That's certainly a take
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1. freeopinion ◴[] No.45034000[source]
Presumably the same management that is proposed to be axed en masse with the 50% they are now tasked with selecting...
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2. jazzyjackson ◴[] No.45034948[source]
Let's flip it. Direct reports get to vote on whether they would be better off without their manager.