Monday, January 23rd 2023

Intel Slams the Brakes on Hillsboro R&D Center as Part of Cost Savings

Alongside its facilities in Hillsboro, Oregon, Intel was meant to build a state of the art, $700 million R&D centre, but it appears that the company has decided to slam the brakes on that project, as part of its cost saving measures. The "mega lab" as it has also been referred to, will most likely not get built at all, despite the comparably small cost in relation to building a semiconductor fab, but $700 million saved is still going to make Intel look good in front of its shareholders. In total, Intel is said to be looking at cutting US$3 billion in spending for 2023 and cancelling the construction of the R&D facility contributes almost a quarter of that sum.

The "mega lab" was supposed to cover 18,580 square metres of floor space, largely dedicated towards data centre R&D projects. According to Intel, those projects will still go ahead, just at other facilities, according to a statement sent to Oregon Live. Intel is apparently also scrapping plans for a much smaller, US$200 million R&D facility in Israel, while potentially also pushing back its plans for new fabs in Europe. The latter might come down to what kind of subsidies Intel can get from the German government and the EU.
Sources: Oregon Live, via Tom's Hardware
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52 Comments on Intel Slams the Brakes on Hillsboro R&D Center as Part of Cost Savings

#1
the54thvoid
Super Intoxicated Moderator
How about if Pat gave back 178 million dollars of his 2022 pay award? Pretty sure his rent's covered and his savings are bouyant.
Posted on Reply
#2
bonehead123
Can anybody say "Take the Money & Run" ?

And in a few years when they fall way behind in new tech development, what will they do then ?

I know exactly what they will do: Go cryin to the gov't about needing even MOAR taxpayer money (the recent "Chips Act" will pail in comparison) to bail themselves out of their self-inflicted discombobulated clusterf*ck mess....

Mark my words, cause it's a comin sooner rather than later !
Posted on Reply
#3
phanbuey
bonehead123Can anybody say "Take the Money & Run" ?

And in a few years when they fall way behind in new tech development, what will they do then ?

I know exactly what they will do: Go cryin to the gov't about needing even MOAR taxpayer money (the recent "Chips Act" will pail in comparison) to bail themselves out of their self-inflicted discombobulated clusterf*ck mess....

Mark my words, cause it's a comin sooner rather than later !
That will 100% happen. AMD depends on TSMC so as far as the DOD is concerned Intel is the only game in town.
Posted on Reply
#4
erocker
*
Wasn't Intel given a bunch of money for this to happen? Sounds like more corporate theft without consequence.
Posted on Reply
#5
ThrashZone
Hi,
Too many lakes catching up with them
Nobody wants eol lakes anymore :laugh:
Posted on Reply
#6
Daven
While Intel will use every and any other excuse, the fact of the matter is that a company run like Intel cannot thrive in a competitive environment. Prepare for the company to shrink down in size… a lot.
Posted on Reply
#7
Dave65
erockerWasn't Intel given a bunch of money for this to happen? Sounds like more corporate theft without consequence.
I thought so too, who regulates this stuff..
Posted on Reply
#8
phanbuey
DavenWhile Intel will use every and any other excuse, the fact of the matter is that a company run like Intel cannot thrive in a competitive environment. Prepare for the company to shrink down in size… a lot.
US gov won't let them - not to mention, AMD isn't run much better -- they just hit a home run with ZEN / Jim Keller / their excellent engineering team. But that will last about another 2-3 years and then they will need to pull more tricks out of the bag.

They also hit a home run with STARS back in the day and were slapping intel around during the pentium years and then gouged their customers with FX models and almost went bankrupt with Bulldozer... so I wouldn't read into AMD's recent success as some genius business strategy or that they're well run. Those guys were circling the drain hard for years (I have 2 friends that work there) - they're a total shitshow.
Posted on Reply
#9
claes
erockerWasn't Intel given a bunch of money for this to happen? Sounds like more corporate theft without consequence.
Dave65I thought so too, who regulates this stuff..
Nope, they were given money to build fabs. This was just an R&D center.
Posted on Reply
#10
Wirko
TheLostSwedehas decided to slam the brakes
but, as it has been said before,
Posted on Reply
#11
Denver
bonehead123Can anybody say "Take the Money & Run" ?

And in a few years when they fall way behind in new tech development, what will they do then ?

I know exactly what they will do: Go cryin to the gov't about needing even MOAR taxpayer money (the recent "Chips Act" will pail in comparison) to bail themselves out of their self-inflicted discombobulated clusterf*ck mess....

Mark my words, cause it's a comin sooner rather than later !
Tax payer money? I thought the US just printed money to do these things. And Yeah, Intel sucks :P
Posted on Reply
#12
mechtech
why make 7nm and smaller if you can just buy it off someone else?? ;)

wait..................wasn't this the whole reason for the "chips act"??
Posted on Reply
#13
Wirko
erockerWasn't Intel given a bunch of money for this to happen? Sounds like more corporate theft without consequence.
Yes, and when we say given, I understand it's actually given as a subsidy, in advance, with few conditions attached. Loans and loan guarantees and bonds and stocks and tax credits are so outdated, they don't even count as real money.
Posted on Reply
#14
Daven
phanbueyUS gov won't let them - not to mention, AMD isn't run much better -- they just hit a home run with ZEN / Jim Keller / their excellent engineering team. But that will last about another 2-3 years and then they will need to pull more tricks out of the bag.

They also hit a home run with STARS back in the day and were slapping intel around during the pentium years and then gouged their customers with FX models and almost went bankrupt with Bulldozer... so I wouldn't read into AMD's recent success as some genius business strategy or that they're well run. Those guys were circling the drain hard for years (I have 2 friends that work there) - they're a total shitshow.
Firstly, I never said anything about AMD. ARM, ARM licensees, home brew projects, Chinese chip development, GPUs, compute GPUs, RISC V and yes AMD among many others have taken over market space that Intel alone possessed over a decade ago.

Secondly, since you bring it up, Keller’s influence on AMD products disappeared years ago and barely scratched the surface of where AMD is now and is currently headed. The Keller talk is brought up to scare people. Keller never thought of or came up with the Xilinx acquisition and product integration, the combination of RDNA and Zen in a compute/AI monster (XDNA), 3D stacked cache and future stacked and MCM combos. Hell I’m not even sure how much Keller was involved with chiplets but the IO die and core chiplet combos came later after Zen/Zen+. Finally, it takes extreme engineering from both AMD and TSMC to move to ever shrinking die processes. Keller has nothing to do with any of that.
Posted on Reply
#15
claes
mechtechwhy make 7nm and smaller if you can just buy it off someone else?? ;)

wait..................wasn't this the whole reason for the "chips act"??
WirkoYes, and when we say given, I understand it's actually given as a subsidy, in advance, with few conditions attached. Loans and loan guarantees and bonds and stocks and tax credits are so outdated, they don't even count as real money.
No
claesNope, they were given money to build fabs. This was just an R&D center.
Posted on Reply
#16
phanbuey
DavenFirstly, I never said anything about AMD. ARM, ARM licensees, home brew projects, Chinese chip development, GPUs, compute GPUs, RISC V and yes AMD among many others have taken over market space that Intel alone possessed over a decade ago.

Secondly, since you bring it up, Keller’s influence on AMD products disappeared years ago and barely scratched the surface of where AMD is now and is currently headed. The Keller talk is brought up to scare people. Keller never thought of or came up with the Xilinx acquisition and product integration, the combination of RDNA and Zen in a compute/AI monster (XDNA), 3D stacked cache and future stacked and MCM combos. Hell I’m not even sure how much Keller was involved with chiplets but the IO die and core chiplet combos came later after Zen/Zen+. Finally, it takes extreme engineering from both AMD and TSMC to move to ever shrinking die processes. Keller has nothing to do with any of that.
That's why I mentioned the engineering team involved. Keller was the one who redirected their design strategy after bulldozer, he was really just the one to start it and assemble the avengers and remove the obstacles that got them into their original mess.

TSMC beating Intel at fabbing the cutting edge is exactly right -- if Zen 4 was on 12nm GLOFO or 8NM Samsung it would be a completely different story both in server and client computing.

And that's exactly why they won't be allowed to fail by the USgov.

American semiconductor manufacturing is a national security issue in the eyes of US government -- reliance on TSMC is not an option; despite the trillions of dollars China has thrown at their chip development they too have failed horribly to compete with TSMC. RISC V, ARM, Sifive etc. are great, but they're also just design shops relying on external fabs.

Intel's designs are not the problem, they're competing on design alone while on an inferior process node -- their ability to fabricate silicon is the issue; and that's simply not acceptable to the powers that be. The military complex won't allow that we rely solely on a contested island next to China for the future of our tech. Therefore Intel, GloFo etc. are going to continue to get massive capital injections indefinitely, and TSMC is going to continue to get funding to open plants stateside.

Intel's pivot to fabbing, while panned on wallstreet, is kind of where the value lies -- they are basically the last competitive high-end fab in the west. All of those homebrew and fabless businesses are great an all - but those designs are worthless if you cant manufacture them.
Posted on Reply
#17
lexluthermiester
the54thvoidHow about if Pat gave back 178 million dollars of his 2022 pay award? Pretty sure his rent's covered and his savings are bouyant.
How about YOU give some of YOUR pay back to your employer to help ease their finances, hmm? Every little bit helps...

Suggestions like that are nonsense.
bonehead123Can anybody say "Take the Money & Run" ?

And in a few years when they fall way behind in new tech development, what will they do then ?

I know exactly what they will do: Go cryin to the gov't about needing even MOAR taxpayer money (the recent "Chips Act" will pail in comparison) to bail themselves out of their self-inflicted discombobulated clusterf*ck mess....

Mark my words, cause it's a comin sooner rather than later !
There is so much wrong with this statement. Lack of big-picture-perspective kind of thing.

The reason Intel is cutting back is because of the world economy. This is part of the aftermath of the pandemic. Things and companies will sort themselves out, it just takes time.
Posted on Reply
#18
claes
lexluthermiesterHow about YOU give some of YOUR pay back to your employer to help ease their finances, hmm? Every little bit helps...

Suggestions like that are nonsense.
Just FYI Pat is the employer
Posted on Reply
#19
ReallyBigMistake
So when Intel got billions from the Fed did it come with some strings attached???
Posted on Reply
#20
lexluthermiester
ReallyBigMistakeSo when Intel got billions from the Fed did it come with some strings attached???
Yes, and the fab facility that received that funding is still being built. Don't confuse one thing for another..
Posted on Reply
#21
thesmokingman
lexluthermiesterHow about YOU give some of YOUR pay back to your employer to help ease their finances, hmm? Every little bit helps...

Suggestions like that are nonsense.


There is so much wrong with this statement. Lack of big-picture-perspective kind of thing.

The reason Intel is cutting back is because of the world economy. This is part of the aftermath of the pandemic. Things and companies will sort themselves out, it just takes time.
Oblivious... ness....

www.theverge.com/2023/1/12/23552711/apple-ceo-tim-cook-pay-cut-2023
Posted on Reply
#22
Unregistered
Governments should invest in universities instead of giving incentives to greedy corporations.
Posted on Edit | Reply
#23
Why_Me
Xex360Governments should invest in universities instead of giving incentives to greedy corporations.
Like how?
Posted on Reply
#24
Chaitanya
So just going to keep leeching taxpayers money while Gelsinger keeps getting his absurd salary.
Posted on Reply
#25
Why_Me
ChaitanyaSo just going to keep leeching taxpayers money while Gelsinger keeps getting his absurd salary.
I believe the taxpayer money was meant for foundries.
Posted on Reply
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