A significant legal challenge has emerged for Intel's leadership as shareholders aim for the company's representation of its foundry business performance. LR Trust has filed a lawsuit against former CEO Pat Gelsinger and current co-CEO David Zinsner, seeking to return substantial executive compensation amid allegations of misleading statements and financial mismanagement. The lawsuit centers on Intel Foundry Services (IFS), a division that was once positioned as a crucial growth engine for Team Blue. The Intel Foundry, as it is now called, is here referred as Intel Foundry Services, which was its older name back in 2023. According to court documents, LR Trust claims that while Intel's leadership painted an optimistic picture of IFS's trajectory, the division struggled to attract major clients and accumulated significant losses. Gelsinger's $207 million compensation package is at the heart of the dispute, where shareholders now demand that these funds should be returned to the company.

The legal action also targets additional compensation received by Zinsner, arguing that executive rewards were secured through misrepresenting the company's financial health. The allegations point to a troubled 2023, during which Intel's chip production unit reportedly lost $7 billion. These challenges extended into 2024, as increased investments in new fab facilities further strained the company's finances. The lawsuit alleges that executives issued "materially false and misleading" statements regarding cost savings and revenue potential, ultimately driving shareholder value to the very bottom. LR Trust's legal filing accuses Intel's leadership of breaching its financial duties through inadequate internal controls and inaccurate financial disclosures. Beyond seeking the return of executive compensation, the lawsuit pursues damages and legal cost reimbursement, with any recovered funds potentially being returned to Intel's coffers. Intel has yet to respond formally to these allegations. This is just another lawsuit in line as Intel already has several other lawsuits going on, with one recent from August.

Micron Technology, Inc. today announced results for its first quarter of fiscal 2025, which ended November 28, 2024.

Fiscal Q1 2025 highlights

• Revenue of $8.71 billion versus $7.75 billion for the prior quarter and $4.73 billion for the same period last year
• GAAP net income of $1.87 billion, or $1.67 per diluted share
• Non-GAAP net income of $2.04 billion, or $1.79 per diluted share
• Operating cash flow of $3.24 billion versus $3.41 billion for the prior quarter and $1.40 billion for the same period last year

"Micron delivered a record quarter, and our data center revenue surpassed 50% of our total revenue for the first time," said Sanjay Mehrotra, President and CEO of Micron Technology. "While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders."

During Barclays 22nd Annual Global Technology Conference, Intel was a guest and two of the interim company co-CEOs Michelle Johnston Holthaus and David Zinsner gave a little update on the state of affairs at Intel. One of the most interesting aspects of the talk was Intel's upcoming "Panther Lake" processor—a direct successor to Intel Core Ultra 200S "Arrow Lake-H" mobile processors. The company confirmed that Panther Lake would utilize an Intel 18A node and that a few select customers have powered on Panther Lake on the E0 engineering sample chip. "Now we are using Intel Foundry for Panther Lake, which is our 2025 product, which will land on 18A. And this is the first time that we're customer zero in a long time on an Intel process," said interim co-CEO Michelle Johnston Holthaus, adding, "But just to give some assurances, on Panther Lake, we have our ES0 samples out with customers. We have eight customers that have powered on, which gives you just kind of an idea that the health of the silicon is good and the health of the Foundry is good."

While we don't know what ES0 means for Intel internally, we can assume that it is one of the first engineering samples on the 18A. The "ES" moniker usually refers to engineering samples, and zero after it could be the first design iteration. For reference, Intel's "Panther Lake-H" will reportedly have up to 18 cores: 6 P-cores, 8 E-cores, and 4 LP cores. The design brings back low-power island E-cores in the SoC tile. The P-cores use "Cougar Cove," which should have a higher IPC than "Lion Cove," while keeping the existing "Skymont" E-cores. The SoC tile may move from Arrow Lake's 6 nm to a newer process to fit the LP cores and an updated NPU. The iGPU is said to use the Xe3 "Celestial" architecture. With Arrow Lake-H launching in early 2025, Panther Lake-H likely won't arrive until 2026.

Intel's Foundry business is the company's current pain point and probably the reason why the company board of directors forced out ex-CEO Pat Gelsinger. However, the new interim co-CEO, David Zinsner, confirmed that the foundry plan would remain the same. At the UBS technology conference, Zinsner indicated that the company's core strategy remains unchanged and reiterated the forecasts shared in October, highlighting optimism about growth in its PC and server segments. This is a healthy sign that Intel will not lose its foundry subsidiary, which, even though difficult to operate, could be Intel's silver lining with growth opportunities ahead.

Yesterday, we covered the choice of Lip-Bu Tan as Intel's next CEO. However, the new co-CEO, Zinsner, stated, "I'm not in the process, but I'm guessing that the CEO will have some capability around foundry as well as on the product side." A new CEO would be left with a lot of work that, apparently, no one so far can finish. There are speculations that Intel's 18A node is yielding 10% of usable silicon, while Intel's head of foundry business, Naga Chandrasekaran, has noted that 18A node is going through evolution phases to improve final yields and remain profitable, noting that "there's nothing fundamentally challenging on this node now. It is about going through the remaining yield challenges, defect density challenges."

The search for a new Chief Executive Officer (CEO) of Intel has begun following Pat Gelsinger's departure on Monday. And it is not exactly an easy role to be filled. The tech giant's board is primarily considering external candidates to lead the company through one of its most challenging periods. Among the potential successors is Lip-Bu Tan, a former Intel board member and semiconductor industry veteran. Tan, who previously served as CEO of Cadence Design, left Intel's board in August 2023 after disagreements with Gelsinger over the company's strategic direction. Despite these past tensions, Intel's board has reportedly recently approached Tan to gauge his interest in the position. The search for new leadership is extremely difficult, considering the requirements and massive problems the new CEO would face.

Coming at a critical moment for Intel, which has experienced significant financial challenges under Gelsinger's tenure, the new CEO would need to get the Foundry business to pick up and maintain a solid product roadmap. The company's revenue dropped to $54 billion in 2023, marking a nearly one-third decline since Gelsinger took the helm in 2021. Analysts project Intel's first annual net loss since 1986 this year, with long-term signs of recovery. Gelsinger's exit, which came after the board presented him with the option to retire or be removed, reflects growing impatience with the pace of his ambitious turnaround strategy. The company has appointed CFO David Zinsner and senior executive Michelle Johnston Holthaus as interim co-CEOs while the search committee works to identify a permanent replacement.

Intel Corporation (NASDAQ: INTC) today announced that CEO Pat Gelsinger retired from the company after a distinguished 40-plus-year career and has stepped down from the board of directors, effective Dec. 1, 2024. Intel has named two senior leaders, David Zinsner and Michelle (MJ) Johnston Holthaus, as interim co-chief executive officers while the board of directors conducts a search for a new CEO. Zinsner is executive vice president and chief financial officer, and Holthaus has been appointed to the newly created position of CEO of Intel Products, a group that encompasses the company's Client Computing Group (CCG), Data Center and AI Group (DCAI) and Network and Edge Group (NEX). Frank Yeary, independent chair of the board of Intel, will become interim executive chair during the period of transition. Intel Foundry leadership structure remains unchanged.

The board has formed a search committee and will work diligently and expeditiously to find a permanent successor to Gelsinger. Yeary said, "On behalf of the board, I want to thank Pat for his many years of service and dedication to Intel across a long career in technology leadership. Pat spent his formative years at Intel, then returned at a critical time for the company in 2021. As a leader, Pat helped launch and revitalize process manufacturing by investing in state-of-the-art semiconductor manufacturing, while working tirelessly to drive innovation throughout the company."

Samsung Electronics today announced new leadership for the next phase of the Company's growth and to strengthen its future competitiveness, focusing on the semiconductor business.

Young Hyun Jun, Vice Chairman and Head of Device Solutions (DS) Division, was named CEO and will also become the Head of Memory Business and Samsung Advanced Institute of Technology. Jinman Han was promoted to President and will become the Head of Foundry Business, while Seok Woo Nam will become Chief Technology Officer of Foundry Business, a newly-created position.

During Alphabet's Q3 earnings call, CEO Sundar Pichai announced that AI now generates more than a quarter of the company's new code, marking a significant milestone for AI advancement and for the tech giant. This development comes alongside impressive financial results, with the company reporting $88.2 billion in revenue, representing a 15% year-over-year increase. Implementing AI in code generation has raised concerns, though Google maintains rigorous safety protocols. Every AI-generated code segment undergoes thorough review by human (natural intelligence) engineers before deployment, ensuring quality and security standards are met. This hybrid approach helps Google balance productivity with reliability. The tech giant's commitment to AI development extends beyond code generation.

Recent achievements include the revolutionary AI Overviews feature, which has undergone significant optimization. Through optimizing hardware solutions and technical improvements, Google has managed to reduce query costs by over 90% while simultaneously doubling the capacity of their custom Gemini models. Google's AI push has also garnered prestigious recognition, with DeepMind researchers Demis Hassabis and John Jumper receiving the Nobel Prize in Chemistry for their groundbreaking AlphaFold project. Former Google researcher Geoff Hinton also achieved Nobel recognition in Physics. The impact of Google's AI integration is evident across its product ecosystem, with Gemini models now powering seven platforms that each serve over two billion monthly users. Google Maps recently joined this elite group, while the company has expanded its AI capabilities to external developers through partnerships with platforms like GitHub Copilot to help developers write code with AI assistance.

Electronic Arts (NASDAQ: EA) today announced preliminary financial results for its second quarter ended September 30, 2024. "EA delivered another strong quarter with record Q2 net bookings, driven by our incredible teams, broad portfolio and technology leadership," said Andrew Wilson, CEO of EA. "The momentum in our business reinforces our strategic vision to deliver innovative experiences and interactive entertainment that deepens and expands engagement across our global communities."

"Q2 was another successful quarter for EA, exceeding the high end of our guidance range. As a result, we are also raising our FY25 outlook," said Stuart Canfield, CFO of EA. "We remain confident in our ability to drive long-term value creation through increased scale, driving top-line growth, improved margins, and greater cash flow as shared at our Investor Day."

Today, ASML Holding NV (ASML) has published its 2024 third-quarter results.

• Q3 total net sales of €7.5 billion, gross margin of 50.8%, net income of €2.1 billion
• Quarterly net bookings in Q3 of €2.6 billion of which €1.4 billion is EUV
• ASML expects Q4 2024 total net sales between €8.8 billion and €9.2 billion, and a gross margin between 49% and 50%
• ASML expects 2024 total net sales of around €28 billion
• ASML expects 2025 total net sales to be between €30 billion and €35 billion, with a gross margin between 51% and 53%

CEO statement and outlook
"Our third-quarter total net sales came in at €7.5 billion, above our guidance, driven by more DUV and Installed Base Management sales. The gross margin came in at 50.8%, within guidance. While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness. Regarding Logic, the competitive foundry dynamics have resulted in a slower ramp of new nodes at certain customers, leading to several fab push outs and resulting changes in litho demand timing, in particular EUV. In Memory, we see limited capacity additions, with the focus still on technology transitions supporting the HBM and DDR5 AI-related demand."

NVIDIA is gearing up for an exciting showcase at CES 2025, where its CEO, Jensen Huang, will take the stage and talk about, hopefully, future "Blackwell" products. According to Wccftech's sources, the anticipated GeForce RTX 5090, RTX 5080, and RTX 5070 graphics cards should arrive at CES 2025 in January. The flagship RTX 5090 is rumored to come equipped with 32 GB of GDDR7 memory running at 28 Gbps. Meanwhile, the RTX 5080 looks very interesting with reports of its impressive 16 GB of GDDR7 memory running at 32 Gbps. This advancement comes after we previously believed that the RTX 5080 model is going to feature 28 Gbps GDDR7 memory. However, the newest rumors suggest that we are in for a surprise, as the massive gap between RTX 5090 and RTX 5080 compute cores will be filled... with a faster memory.

The more budget-friendly RTX 5070 is also set for a CES debut, featuring 12 GB of memory. This card aims to deliver solid performance for gamers who want high-quality graphics without breaking the bank, targeting the mid-range segment. We are very curious about pricing of these models and how they would fit in the current market. As anticipation builds for CES 2025, we are eager to see how these innovations will impact gaming experiences and creative workflows in the coming year. Stay tuned for more updates as the event approaches!

During a recent earnings call, Co-CEO of CD Projekt Red (CDPR) Michal Nowakowski confirmed that thanks to the success of the Cyberpunk: Edgerunners, the development team will be looking at further animation projects.
"[The developer is] definitely planning to do more in terms of animation," says Nowakowski (on Gizmodo). "Expect to see more for sure, but that's as far as I can go right now."

Considering the fact that upcoming projects, The Witcher 4 (given the codename "Polaris") and Cyberpunk 2 (given the codename "Orion") are massive projects which would definitely take a lot of resources and focus, it will probably take a while to finish the animated series. But then again, considering the fact that CDPR will likely play a supervisory role for any project undertaken, a new animated series might not take a huge amount of time.

According to a recent report from Bloomberg, Intel is in talks with investment banks about a possible spin-out of its foundry business, as well as scraping some existing expansion plans to cut losses. As the report highlights, sources close to Intel noted that the company is exploring various ways to deal with the recent Q2 2024 earnings report. While Intel's revenues are in decline, they are still high. However, the profitability of running its business has declined so much that the company is now operating on a net loss, with an astonishing $1.61 billion in the red. CEO Pat Gelsinger is now exploring various ways to control these losses and make the 56-year-old giant profitable again. Goldman Sachs and Morgan Stanley are reportedly advising Intel about its future moves regarding the foundry business and overall operations.

The Intel Foundry unit represents the biggest consumer of the company's funds, as the expansion plans across the US and Europe are costing Intel billions of US Dollars. Even though the company receives various state subsidies to build semiconductor manufacturing facilities, it still has to put much of its capital to work. Given that the company is running tight on funds, some of these expansion plans that are not business-critical may get scraped. Additionally, running the foundry business is also turning out to be rather costly, with Q2 2024 recording a negative 65.5% operating margin. Separating Intel Product and Intel Foundry may be an option, or even selling the foundry business as a whole is on the table. Whatever happens next is yet to be cleared up. During the Deutsche Bank Technology Conference on Thursday, Pat Gelsinger also noted that "It's been a difficult few weeks" for Intel, with many employees getting laid off to try to establish new cost-saving measures.

NVIDIA today reported revenue for the second quarter ended July 28, 2024, of $30.0 billion, up 15% from the previous quarter and up 122% from a year ago. For the quarter, GAAP earnings per diluted share was $0.67, up 12% from the previous quarter and up 168% from a year ago. Non-GAAP earnings per diluted share was $0.68, up 11% from the previous quarter and up 152% from a year ago.

"Hopper demand remains strong, and the anticipation for Blackwell is incredible," said Jensen Huang, founder and CEO of NVIDIA. "NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI."

Intel's Sales and Marketing Group (SMG) has announced a 35% reduction in costs as the company looks to streamline operations and adapt to challenging market conditions. The cuts, revealed during an all-hands meeting on August 5th, will impact both jobs and marketing expenses within the SMG. Intel has directed the group to "simplify programs end-to-end" by the end of the year, a directive that comes on the heels of the company's announcement that it would lay off 15% of its global workforce to save $10 billion in operating expenses. "We are becoming a simpler, leaner, and more agile company that's easier for partners and customers to work with while ensuring we focus our investments on areas where we see the greatest opportunities for innovation and growth," Intel said in a statement to CRN. The company emphasized that this restructuring is about "building a stronger Intel for the future," with partners integral to its plans.

The job cuts within the SMG are expected to target overlapping responsibilities, such as account managers and industry-focused teams, which can confuse customers navigating Intel's complex organization. Additionally, the company plans to significantly reduce its marketing budget and simplify programs, aiming to save at least $100 million in the latter half of 2024 and an additional $300 million in the first half of 2025. The impact will also be felt in Intel's market development fund (MDF), a crucial tool for supporting OEMs and other partners through events, training, and more. An ex-Intel executive warned that the MDF had become vital as the company's product leadership waned, allowing it to maintain valuable relationships with partners. As Intel navigates these changes, its partners are bracing for the impact, with one CEO describing the situation as everyone "hunkering down and just waiting to hear something." Another partner executive expressed concerns about Intel's ability to maintain the level of service and support its customers have come to expect.

SoftBank has reportedly decided against using Intel's foundry for its ambitious AI venture, Project Izanagi, and is opting for TSMC instead. The conglomerate aims to challenge NVIDIA in the AI accelerator market by developing its own AI processors. This decision marks another setback for Intel, which has faced several challenges recently. In February 2024, reports emerged that SoftBank's CEO, Masayoshi Son, planned to invest up to $100 billion to create a company similar to NVIDIA, focused on selling AI accelerators. Although SoftBank initially worked with Intel, it recently switched to TSMC, citing concerns about Intel's ability to meet demands for "volume and speed."

The decision, reported by the Financial Times, raises questions about Intel's future involvement and how SoftBank's ownership of Arm Holdings will factor into the project. While TSMC is now SoftBank's choice, the foundry is already operating at full capacity, making it uncertain how it will accommodate this new venture. Neither SoftBank, Intel nor TSMC has commented on the situation, but given the complexities involved, it will likely take time for this plan to materialize. SoftBank will need to replicate NVIDIA's entire ecosystem, from chip design to data centers and a software stack rivaling CUDA, a bold and ambitious goal.

Texas Instruments (TI) (Nasdaq: TXN) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to support three 300 mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.

"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient," said Haviv Ilan, president and CEO of Texas Instruments. "Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300 mm manufacturing operations in the U.S. With plans to grow our internal manufacturing to more than 95% by 2030, we're building geopolitically dependable, 300 mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come."

As Intel's recent challenges continue, the company just sold its 1.18 million share stake in Arm Holdings during Q2, as revealed in a recent regulatory filing, according to Reuters. The sale potentially generated around $146.7 million for Intel, based on Arm's average stock price between April and June. The company recently announced plans to reduce its workforce by over 15% (about 15,000 jobs) and suspend dividend payments, reflecting a downturn in traditional data center semiconductor demand and a shift towards AI chips, a sector where Intel trails competitors like NVIDIA.

CEO Pat Gelsinger is steering Intel towards developing advanced AI chips and expanding its contract manufacturing capabilities, aiming to regain ground lost to Taiwan's TSMC, the industry's leading contract chipmaker. This strategic pivot has increased costs and squeezed profit margins, necessitating cost-cutting measures.

According to a recent report from Reuters, tech giant Intel is facing a significant legal challenge as shareholders file a lawsuit following a dramatic plunge in the company's stock price. The legal action comes from Intel's recent announcement of dividend suspensions and plans to lay off over 15,000 employees. The semiconductor behemoth saw its market value plummet by a staggering $32 billion in a single day, leaving investors reeling. The Construction Laborers Pension Trust of Greater St. Louis has initiated a proposed class action suit, naming Intel, CEO Pat Gelsinger, and CFO David Zinsner as defendants. The plaintiffs allege that the company made misleading statements about its business operations and manufacturing capabilities, artificially inflating its stock price between January 25 and August 1.

Intel's financial woes stem from underperforming contract foundry operations and 1% drop in revenue during the second quarter of 2024. While it may seem miniscule, declining revenue is paired with a negative 15.3% operating margin, resulting in a net loss of $1.61 billion. The company's August 1 announcement caught many shareholders off guard, prompting accusations of inadequate disclosure and transparency. This lawsuit is just one of several legal battles Intel is currently strangled in. The company is also locked in a patent dispute with R2 Semiconductor across multiple European countries, centering on voltage regulation technology. While Intel has secured a victory in the UK, it faces ongoing litigation in Germany, France, and Italy. Adding to Intel's troubles, a separate class action lawsuit is being explored on behalf of customers who purchased potentially faulty 13th and 14th-generation processors. The company also canceled its September 2024 Innovation event, citing poor financials, without any words on Arrow Lake or Lunar Lake. While the cancelation of events is sad, it is necessary to get financials back on track, and product launches should continue as usual.

In a conversation with Intel's CEO Pat Gelsinger, industry analyst Patrick Moorhead revealed that Intel's Meteor Lake CPU platform suffers from some production issues. More specifically, Intel has been facing some yield and/or back-end production issues with its Meteor Lake platform, resulting in a negative impact on Intel's margins when producing the chip. The market is showing great demand for these chips, and Intel has been forced to run productions of "hot lots"-- batch production of silicon with the highest priority that gets moved to the front of the production line so they can get packaged as fast as possible. While this is a good sign that the demand is there, running hot lots increases production costs overall as some other wafers have to go back so Meteor Lake can pass.

The yield issues associated with Meteor Lake could be stemming from the only tile made by Intel in the MTL package: the compute tile made on the Intel 4 process. Intel 4 process is specific to Meteor Lake. No other Intel product uses it, not even the Xeon 6, which uses Intel 3, or any of the upcoming CPUs like Arrow Lake, which uses the Intel 20A node. So, Intel is doing multiple nodes for multiple generations of processors, further driving up costs as typical high-volume production with a single node for multiple processors yields lower costs. Additionally, the company is left with lots of "wafers to burn" with Intel 4 node, so even with Meteor Lake having yield issues, the production is ultimately fine, while the operating costs and margins take a hit.

Qualcomm CEO Cristiano Amon has announced plans to introduce Snapdragon X-powered PCs at a groundbreaking price point of $700 by next year. This revelation, made during the company's recent third-quarter earnings call, signals a significant shift in the accessibility of high-performance Arm-based computers. Currently, the most affordable Snapdragon X laptops on the market, such as the Microsoft Surface Pro and Surface Laptop, retail for $999. The $700 price tag prospect represents a substantial reduction, potentially opening up the technology to a broader consumer base. The only "affordable" Snapdragon X-based PC is the Snapdragon Dev Kit, with a price point of $899. However, the entire laptop solution is still more expensive. Mr. Amon emphasized that despite the lower cost of the potential $700 units, these upcoming devices will maintain neural processing unit (NPU) performance. This commitment suggests that Qualcomm is confident in its ability to optimize costs without sacrificing the advanced capabilities that have made Snapdragon X chips appealing to power users and developers alike.

While specific details about the hardware configurations remain undisclosed, it is interesting to see what steps Qualcomm will take to deliver on this promise. If the company can provide 8-core chips with 16 GB of RAM to the masses for $700, the industry would likely react very well, especially students who require decent computing capabilities on the go, if the $700 PC ends up being a laptop. The announcement also hinted at an expansion of Qualcomm-powered computers, with new models expected to debut at the upcoming IFA tech conference. These additions will likely bolster the selection of Microsoft Copilot+ PCs, further integrating AI capabilities into everyday computing experiences. The CEO also noted, "We expect PC to be the next biggest driver of diversification for the company," with some Snapdragon X PC already being sold out. The demand appears to be strong, and undercutting competition on pricing is an ideal way to get as many customers on board as possible.

According to sources close to Bloomberg, Intel plans to cut 10,000 jobs from its global workforce. The news comes amid heavy pressure on the semiconductor giant, which has been on a steady decline over the years, while other industry rivals like AMD and NVIDIA have been rising and taking market share in various areas from Intel. It is reported that Intel currently has 110,000 employees globally, and reducing the workforce by 10,000 would net Intel around 100,000 global employees left. These figures exclude employees from spun-out units like Altera FPGA company, which is under Intel's ownership. Intel's aim to reduce its workforce is expected to come with a significant cost benefit to the company, with projected savings of $10 billion by 2025.

The news isn't yet official, but it is expected to see the light of the day as soon as this week. As Intel's CEO Pat Gelsinger invests heavily into the fab construction and development of next-generation products, there have been a few notes that Intel would have to overcome some challenges shortly to reach its long-term goals like more advanced silicon manufacturing facilities and new products for AI/HPC and client sector. One of those short-term measures is reducing the workforce to cut down expenses. Intel has reduced its workforce before. In 2022, the company announced reduced spending in non-critical areas and reducing the workforce, and in 2023, cut the workforce by 5% to 124,800 employees last year, only to be left with 110,000 employees in 2024.

Cornelis Networks, a leading independent provider of intelligent, high-performance networking solutions, today announced the appointment of Lisa Spelman as its new chief executive officer (CEO), effective August 15. Spelman joins Cornelis from Intel Corporation, where she held executive leadership roles for more than two decades, including leading the company's core data center business. Spelman will succeed Philip Murphy, who will assume the role of president and chief operating officer (COO).

"Cornelis is unique in having the products, roadmap, and talent to help customers address this issue. I look forward to joining the team to bring their innovations to even more organizations around the globe."

Micron has announced more precise timeframes for the commencement of operations at its two new memory facilities in the United States during its Q3 FY2024 results presentation. The company expects these fabs, located in Idaho and New York, to begin production between late 2026 and 2029. The Idaho fab, currently under construction near Boise, is slated to start operations between September 2026 and September 2027. Meanwhile, the New York facility is projected to come online in the calendar year 2028 or later, pending the completion of regulatory and permitting processes. These timelines align with Micron's original plans announced in 2022 despite recent spending optimizations. The company emphasizes that these investments are crucial to support supply growth in the latter half of this decade.

Micron's capital expenditure for FY2024 is set at approximately $8 billion, with a planned increase to around $12 billion in FY2025. This substantial rise in spending, targeting a mid-30s percentage of revenue, will support various technological advancements and facility expansions. A substantial portion of this increased investment - over $2 billion - will be dedicated to constructing the new fabs in Idaho and New York. Additional funds will support high-bandwidth memory assembly and testing, as well as the development of other fabrication and back-end facilities. Sanjay Mehrotra, Micron's CEO, underscored the importance of these investments, stating that the new capacity is essential to meet long-term demand and maintain the company's market position. He added that these expansions, combined with ongoing technology transitions in Asian facilities, will enable Micron to grow its memory bit supply in line with industry demand.

Last month, we covered ASML's plans to leave the Netherlands after a crisis with the Dutch government that prevented skilled immigrants from entering and working inside ASML's facilities. However, it appears that ASML has managed to strike a potential deal with the Netherlands Prime Minister Mark Rutte and his office about the company's plans to stay in the country. In an effort dubbed "Operation Beethoven," the Dutch government aimed to keep the tech giant in the country, with a deal now seemingly in place. AMSL's roadblocks and reasons for potentially leaving the Netherlands were difficulty in obtaining building permits, constraints on the electrical grid, transportation bottlenecks, and a need for supporting infrastructure like hospitals, schools, and housing. The most prominent of them was importing foreign labor in the form of highly skilled engineers and scientists needed to develop next-generation lithography machines.

According to the NLTimes, ASML now plans to potentially expand in the Brainport Industries Campus (BIC) in Eindhoven, with a creation of 20,000 new jobs in a 2.5 billion Euro investment from the Dutch government. "BIC is an interesting option for us, which we are now exploring together with the municipality of Eindhoven," noted ASML CFO Roger Dassen. Given that ASML needs to double its operations in the following decade to meet soaring demand, the company has many uncertainties. Questions of finding skilled immigrants and building infrastructure to support their needs remain the company's priority. In the Summer, the plan to support ASML's expansion will be voted in the Eindhoven City Council, which will decide the fate of ASML's stay in the Netherlands. An interesting comment from January from AMSL CEO Peter Wennik is, "Ultimately, we can only grow this company if there are enough qualified people. We prefer to do that here, but if we cannot get those people here, we will get those people in Eastern Europe or in Asia or in the United States. Then we will have to go there." The final decision still awaits.