Forward-looking: Intel’s CEO Bob Swan has revealed a new down-to-earth philosophy for Intel, beginning with him “trying to destroy the thinking about having 90% [CPU] market share inside our company.” Instead of obsessing over CPU market share – which he says is the reason for Intel’s manufacturing troubles – he needs the corporate to consider Intel as having a 30% share in the big silicon manufacturing enterprise.
“We come to work in the morning with a 30% share with every expectation over the next several years that we will play a larger and larger role in our customers’ success – and that doesn’t just mean CPUs. It means GPUs, it means Al, it does mean FPGAs. It means bringing these technologies together so we’re solving customers’ problems. So, we’re looking at a company with roughly 30% share in a $288B silicon TAM (total available market), not CPU TAM but silicon TAM,” he declared on the current Credit Suisse convention (transcribed by Wccftech).
Intel’s current explorations of new markets have been met with various success. Their Optane storage and reminiscence gadgets have been intriguing and widespread, however their modem enterprise turned out to be a disastrous multi-billion dollar bust. All the whereas, they’ve been plagued with painful CPU shortages. Swan is putting the blame on their ambition.
“The scar tissue really started with Moore’s Law. Two times scaling factor every two years, and that’s kind of the simple rule of thumb. That’s worked for a very long time. And the transition from 22 to 40 nm and then 14 to 10 nm we decided that despite the fact the physics was getting more challenging, we decided to set a higher bar for ourselves in terms of performance.”
“So, the 22 to 14 is not a 2 times density, it was 2.4 and it was bumpy along the way. But it worked and that working gave us the confidence that for 14 to 10 – why don’t we take the scaling factor up to 2.7?”
Of course, by making an attempt to leap too far forward Intel compromised their current 14 nm foundries and couldn’t produce sufficient CPUs to fulfill demand, which left them scrambling when they need to have been specializing in rising tech like 5G. Hopefully, the new change in tradition will set them on the correct path.