Intel is winding down its Optane memory business, incurring a $559M inventory impairment; Optane is the sixth non-core business Intel CEO Pat Gelsinger has sold
3D XPoint at the last crossroad. — Intel's Q2 2022 earnings report today was uncharacteristically disappointing …
The wind-down follows that loss of a co-developer and lands alongside Intel’s weak Q2 2022 data-center results. It marks a retreat from a specialized memory line while Intel is under pressure to focus its portfolio.
First-order effects
Intel takes a $559M inventory impairment and removes Optane from the set of businesses it will continue to operate.
3D XPoint loses its remaining named developer after Micron’s earlier R&D exit, ending the technology’s commercial backing from both original partners.
Second-order effects
Intel’s data-center customers lose a continuing Optane product roadmap, narrowing their memory and storage choices as Intel’s Data Center and AI revenue was already declining.
The shutdown concentrates Intel’s capital and management attention on its remaining businesses, rather than sustaining a standalone specialized-memory line.
Third-order effects
The paired Intel and Micron exits show how difficult it is for a distinct memory technology to persist when development, manufacturing, and customer adoption are not supported by multiple committed suppliers.
If semiconductor companies continue pruning non-core units during weaker operating periods, differentiated components will increasingly need a clear fit inside a larger compute platform rather than stand as independent product categories.
The trend: Chipmakers are tightening portfolios around businesses with clearer strategic and commercial support, leaving specialized memory technologies more exposed when partner ecosystems shrink.
Persistent memory felt like it was on the horizon for a decade. A little sad to see the end, but not surprising given the low-level SDK, exotic hardware, and NVMe's advantage over SATA flash. https://www.tomshardware.com/ ... https://twitter.com/...
Intel will be free cash flow negative for years to come. Intel is will not be able to afford the planned fab buildouts, even with EU and US subsidies. They will need to raise debt @PGelsinger should cut their dividend, they already cut their buybacks last year. $INTC #CHIPSAct
Rough $INTC Q2 & guide: -big miss on top ($15.3 vs $17.93B) & bottom ($.29 vs $.70) -CCG: -25%; big OEM inventory burn; -10% TAM -DCAI: -16%; little inventory burn; AMD; Sapphire Rapids push, soft enterprise -NEX: +11%; record revenue -MEYE: +41%; record revenue -GFX: +5% https:/…
Intel Cuts Fab Buildout by $4B To Pay Billions In Dividends Intel had their first net loss in at least 30 years. Despite this, they are “committed to growing the dividend” while cutting fab buildouts by $4 billion. Shame on you @PGelsinger @intel $INTC https://semianalysis.substa…
I am very pissed off, as are many Intel employees. It's their lowest quarterly bonus ever, just so shareholders could continue to get their dividend. Guardrails on #CHIPSAct don't prevent the cowardly behavior of choosing shareholder return over employees+technology @jonmasters
Grim quarter at Intel, with revenues down 22 percent. Said CEO Gelsinger: “We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues.”
Intel Cuts Fab Buildout by $4B To Pay Billions In Dividends | First Net Loss In Over 30 Years, Cutting Fab Buildouts, But “Committed To Growing The Dividend” // @dylan522p pulling no punches https://semianalysis.substack.com/ ...
@dylan522p @ratwave If the US were sensible it would pass some kind of law that would guarantee funding for actual semiconductor national security rather than hand out money as corporate donations