Yes Dave, i agree with you. Intel's refusal not to shift its mind off technology research and developments for a nano-second has been a major contributor to its market success. Am afraid, no other players in the field of semi for now can beat Intel, i think.
Tirlapur, Correct. Cash and a solid business model are key to acquisitions and rising R&D/capex. Intel took steps rivals dared not because it had the cash and also could get financing more easily. The company generates huge cash flow from its microprocessor business and was able to bet a substantial amount without draining its resources completely. The company also happens to have a solid strategy and a visionary management.
Intel has bombed in the past, though. Not all of its investments have panned out. At the same time it was investing in new fabs and R&D, it made some critical acquisitions in the communications IC market to break into the mobile phone segment. They didn't quite work out. Not yet is a better way to put it as it is still possible for some of these to pay off.
Intel went in a different direction. That year, the company boosted capex to about $10 billion, announced plans to build new fabs and said it will invest its way out of the downturn.
@Bolaji, that shows the confidence of the company. Infact TI did similar thing during 2008 downturn. It went ahead and bought troubled German DRAM maker Qimonda. Infact downturn is the best time for acquisation because valuations of the companies fall during downturn. Only companies like Intel and TI can take such risks.
People always seem to want to knock down the giants, but Intel continues to innovate and invest heavily in R&D.
@Dave, Intel not only invests heavily in R&D but it also invests smartly in startup technologies. For example Intel is planning to invest $20M in 6 Indian startup's. This kind of investment is helping Intel to have an advantage over other companies.
Jay, They never put it in such stark terms, of course. They just say it with a show of hands. If asked where they would like to put their funds over the next five years, solid companies like Intel don't get a lot of votes because somebody believes a smaller company is going to eclipse them soon. The "Sky is going to fall tomorrow" on their head soon, I hear. Tomorrow hasn't come yet! Not for Intel but, of course, the company is no doubt aware of the dire forecast.
In reality, investors know Intel isn't about to fade away. They just don't see it as a fast-growth stock. The acquisition of Infineon's wireless business helped Intel prove them wrong in 2011. Now, it must give the encore in 2012. Who will win this waiting game?
I find it amazing that investors and analysts would actually consider writing off Intel. Intel is about to end 2011 with some staggering numbers. When you consider all of the global economic woes this year, Intel is running strong and continuing to innovate. I don't see Intel being written off for a long time.
Dave, I recall about 10 years ago when the high-tech industry was in the throes of a major recession, everyone was in lockdown mode, cutting expenses and payroll and sharply scalling back R&D and capital expenditure. Intel went in a different direction. That year, the company boosted capex to about $10 billion, announced plans to build new fabs and said it will invest its way out of the downturn.'
That investment focus helped Intel pull away from Advanced Micro Devices. Years later, we are discussing how the company is still pulling away from rivals by increasing its investment in new market segments.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.