I feel like this is a mistake. Pat's strategy is aggressive but what the company needs.
Intel's stock is jumping at this announcement, but I look at it as a bad signal for Intel 18a. If 18a was looking to be a smash hit then I don't think Pat gets retired. If 18a is a success then it is an even more short-sighted decision by the board.
What this likely means is two-fold:
1. Intel 18a is being delayed further and/or there are significant issues that will hamstring performance.
2. Pat is/was unwilling to split the foundry and design business / be part of a M&A but the board wants to do one or the other.
If 18a is not ready I think the best case scenario for Intel is a merger with AMD. The US Govt would probably co-sign on it for national security concerns overriding the fact that it creates an absolute monopoly on x86 processors. The moat of the two companies together would give the new combined company plenty of time to ramp up their fabs.
Intel's stock is jumping at this announcement, but I look at it as a bad signal for Intel 18a. If 18a was looking to be a smash hit then I don't think Pat gets retired. If 18a is a success then it is an even more short-sighted decision by the board.
What this likely means is two-fold:
1. Intel 18a is being delayed further and/or there are significant issues that will hamstring performance.
2. Pat is/was unwilling to split the foundry and design business / be part of a M&A but the board wants to do one or the other.
If 18a is not ready I think the best case scenario for Intel is a merger with AMD. The US Govt would probably co-sign on it for national security concerns overriding the fact that it creates an absolute monopoly on x86 processors. The moat of the two companies together would give the new combined company plenty of time to ramp up their fabs.