Monday, September 2nd 2024

Intel Considers Sale of Altera Business Amid Restructuring Plans, Foundry Business to Stay

Intel is reportedly exploring the sale of its Altera business, a move guided by CEO Pat Gelsinger as part of broader restructuring efforts. Acquired by Intel in 2015 for $16.7 billion, Altera, formerly known as the Programmable Solutions Group, has been a profitable segment. However, with Intel facing financial strain due to extensive spending, the company is now considering divesting its FPGA business to recoup capital. Currently, Altera operates as a separate entity within Intel, relying on the tech giant for R&D, sales, marketing, and support. Gelsinger is expected to propose the sale at a board meeting scheduled for mid-September, where he will outline his vision for Intel's future. This restructuring could also affect other parts of Intel's operations, including its Foundry business.

While previous reports suggested that Intel might spin off its Foundry unit or sell it to industry leaders like TSMC or Samsung, the latest information indicates that Intel plans to retain this division, albeit with scaled-back expansion efforts. The $32 billion factory in Germany, for example, may be scrapped, along with other capital-intensive projects, and other capital expansions may also be put on hold. Pat Gelsinger's vision still needs to be finalized and is still in the drafting phase, so until the mid-September board meeting, we have to wait to gain more information.
Source: Reuters
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37 Comments on Intel Considers Sale of Altera Business Amid Restructuring Plans, Foundry Business to Stay

#26
Vayra86
Dr. DroAll I'm saying is they aren't the incompetent buffoons that a lot of people are implying they are. The positions they hold aren't entrusted to just about anybody - there's a reason every 386 has "PG" engraved in them.
I agree, they're not incompetent buffoons and I won't say that they are. What we do see is that some people get stuck in the past or in old ideas, and basically throwing the same people at the same problems just provides similar outcomes.

It wasn't until Keller was flown in to AMD's CPU division that things took a radical change for the better. Similar things must occur at Intel - but when Intel had to make that move, they hired Raja and Pat G for this and on CPU they never did a full reset while Raja was destined to start with the scraps of decades of Intel IGPs. Old boys doing old tricks. Pat G was always Intel. And Raja... honestly, sure, the man knows his way around GPUs. But he was put in the wrong position, the man shouldn't get screentime, and shouldn't be doing the project management. He makes mistakes. Big ones, and they've been evident not just at Intel but also at AMD. Overselling every time, and underdelivering as a result. Even at AMD I think his hands were tied, like you pointed out, but at the same time, if he's truly an insightful engineer in a leading position, shouldn't he be lining out a different strategy to make the best chip? Vega didn't just lack in performance (per watt) but it was also a pita to source HBM. Polaris, while 'successful' in sales, didn't move GCN forward much, and RDNA1 was a bunch of nothing if you ask me, stopgap gen if anything. Was the strategy of AMD truly to execute several generations of GPU with that little progress towards matching the cutting edge? They literally plateaud at Vega performance, hard, for a long time, and up to this day the GPU strategy often seems to lack direction (at least in the PC DIY space).

Now let's look at what Pat's done for Intel as CEO. Overselling... underdelivering. I'm sure they're great engineers. And I'm sure that's what they should have kept doing. I strongly doubt Raja was treated at Intel like Keller was treated at AMD. Part of that is company culture, arrogance vs underdog mentality must have played its part here, too.
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#27
Nhonho
Daven“Pat Gelsinger's vision…”

You mean Pat Gelsinger’s failure.

The word vision usually involves positive thinking for the future of a company. What’s happening are plans being made to reduce Intel due to business failures.
Brian Krzanich and Pat Gelsinger are the most incompetent CEOs I have ever seen. Imagine if either of them were CEO of Nvidia... Nvidia would have gone bankrupt by now.
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#28
remixedcat
Vayra86I agree, they're not incompetent buffoons and I won't say that they are. What we do see is that some people get stuck in the past or in old ideas, and basically throwing the same people at the same problems just provides similar outcomes.

It wasn't until Keller was flown in to AMD's CPU division that things took a radical change for the better. Similar things must occur at Intel - but when Intel had to make that move, they hired Raja and Pat G for this and on CPU they never did a full reset while Raja was destined to start with the scraps of decades of Intel IGPs. Old boys doing old tricks. Pat G was always Intel. And Raja... honestly, sure, the man knows his way around GPUs. But he was put in the wrong position, the man shouldn't get screentime, and shouldn't be doing the project management. He makes mistakes. Big ones, and they've been evident not just at Intel but also at AMD. Overselling every time, and underdelivering as a result. Even at AMD I think his hands were tied, like you pointed out, but at the same time, if he's truly an insightful engineer in a leading position, shouldn't he be lining out a different strategy to make the best chip? Vega didn't just lack in performance (per watt) but it was also a pita to source HBM. Polaris, while 'successful' in sales, didn't move GCN forward much, and RDNA1 was a bunch of nothing if you ask me, stopgap gen if anything. Was the strategy of AMD truly to execute several generations of GPU with that little progress towards matching the cutting edge? They literally plateaud at Vega performance, hard, for a long time, and up to this day the GPU strategy often seems to lack direction (at least in the PC DIY space).

Now let's look at what Pat's done for Intel as CEO. Overselling... underdelivering. I'm sure they're great engineers. And I'm sure that's what they should have kept doing. I strongly doubt Raja was treated at Intel like Keller was treated at AMD. Part of that is company culture, arrogance vs underdog mentality must have played its part here, too.
Intel is in desperate need of an outsider.... stagnation is rife in the IT world it seems rn. But these companies are afraid to hire any outsiders that would come to the company with new solutions! I've ran into this myself while applying for IT jobs. They feel like they don't want anyone challenging their worldviews, but here's the thing IT'S NEEDED in the IT industry! We need more diversity of thought and companies are not open to that these days! But people as a whole have gotten too scared to be challenged intellectually they can't even innovate if their lives depended on it!
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#29
kapone32
Dr. DroIt's been what, 6 years since Raja Koduri left AMD and Radeon is still their worst performing business. Not to mention that Radeon itself (and by this I mean the original Radeon from 2000) had his personal involvement, as well as the most successful of their GPU designs, Polaris. RDNA and CDNA split occurred for a reason, they had been re-heating GCN for 10 years at that point. Not even if you brought Nvidia's most experienced engineers in they could fix GCN by the time Vega 20 came out.

The problem runs much deeper than that, and using him as a scapegoat has grown quite old. The copium has gotta run out someday, sheesh.
This thread has nothing to do with AMD.
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#30
Dr. Dro
kapone32This thread has nothing to do with AMD.
Read the thread. Do you know who Raja Koduri is? I wasn't the one to initially bring Raja or AMD into this. Besides, you're always one to talk. Always.
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#31
DAPUNISHER
They have IBM syndrome. Decades of institutional rot and hubris. Like IBM they will never be the same company again. The days of Chipzilla are almost certainly at an end. The brain drain is one of the worst problems they are facing. Getting capex and other costs under control means little if all of the talent has moved on to happier hunting grounds. Employees on Reddit paint a bleak picture of motivation, morale, and job security. They say pay is not competitive but there were perks that made it worthwhile. Now that they are taking all of those away, the last incentives are gone.

No more merit bonuses, and the feeling that performance metrics will get you fired for just about anything. No wonder so many are looking to bail. Taking away free snacks and coffee is just petty and is going to bear bitter fruit (pun intended)
Posted on Reply
#32
kapone32
Dr. DroRead the thread. Do you know who Raja Koduri is? I wasn't the one to initially bring Raja or AMD into this. Besides, you're always one to talk. Always.Here comes the personal attack. First you question my Intelligence and then create the narrative. Intel and AMD are two different companies and Intel's GPU is not the reason for a 27% drop in Stock price ijn 1 day.
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#33
Dr. Dro
I did not question your intelligence. I told you to read the thread and inquired if you knew who Raja Koduri is. You will never miss a chance to defend AMD or reiterate your supposed satisfaction with AMD products, so the assertion that you're one to talk stands. You can't help it.

Even now, it hasn't dawned on you that if this argument is because of off-topic (and it wasn't, since the subject is the supposed poor performance of Intel executives - and any criticism leveled at Raja - currently an Intel executive and formerly an AMD executive - is based on Reddit's misguided view that he is solely responsible for the Radeon Vega flop) - you only managed to prolong it.
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#34
kapone32
Dr. DroI did not question your intelligence. I told you to read the thread and inquired if you knew who Raja Koduri is. You will never miss a chance to defend AMD or reiterate your supposed satisfaction with AMD products, so the assertion that you're one to talk stands. You can't help it.

Even now, it hasn't dawned on you that if this argument is because of off-topic (and it wasn't, since the subject is the supposed poor performance of Intel executives - and any criticism leveled at Raja - currently an Intel executive and formerly an AMD executive - is based on Reddit's misguided view that he is solely responsible for the Radeon Vega flop) - you only managed to prolong it.
Just like how you always attack AMD. You talk so negative about AMD that you inserted this in this thread. Like I said before Raja has nothing to do with the failure of Intel's CPUs. This is all because of the 27% drop in stock price due to that narrative. You have no idea what made Vega a non product for some as it was price and not performance that made it seem meh but you are probably only talking about Raja because he was an AMD employee.
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#35
Dr. Dro
kapone32Just like how you always attack AMD. You talk so negative about AMD that you inserted this in this thread. Like I said before Raja has nothing to do with the failure of Intel's CPUs. This is all because of the 27% drop in stock price due to that narrative. You have no idea what made Vega a non product for some as it was price and not performance that made it seem meh but you are probably only talking about Raja because he was an AMD employee.
Wrong. If AMD releases something that doesn't have chronic problems, buts or ifs, I will be on their side. I've purchased AMD flagship hardware before. My previous build had a 5950X processor. At the time, Intel didn't suit my needs. During that time, I had every single GPU generation they had released up to that time - but I've become disenfranchised and disillusioned with them. Because I don't believe in the tooth fairy, or think Lisa Su farts rainbows.

I did not insert AMD in this thread. And stop backseat moderating, go find something better to spend your time with.
Posted on Reply
#36
kapone32
Dr. DroWrong. If AMD releases something that doesn't have chronic problems, buts or ifs, I will be on their side. I've purchased AMD flagship hardware before. My previous build had a 5950X processor. At the time, Intel didn't suit my needs. During that time, I had every single GPU generation they had released up to that time - but I've become disenfranchised and disillusioned with them. Because I don't believe in the tooth fairy, or think Lisa Su farts rainbows.

I did not insert AMD in this thread. And stop backseat moderating, go find something better to spend your time with.
Ok you are free to believe what you will. Maybe read your post about Radeon in this very thread that says Intel may sell Altera. This is almost too easy.
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