Friday, January 5, 2024

Intel - $10 Billion Cost Reduction Plan and Strategy

27 Oct 2022


Intel Stock rises 5% on news of cost reduction

https://siliconangle.com/2022/10/27/intels-stock-rises-plan-save-10-billion-cost-reductions-2025/

28 October 2022

"We'll start with a focus on driving $3 billion of cost reduction in 2023, one-third in cost of sales and two-thirds in operating expenses," said the company.

In addition, we have also identified structural cost reductions and efficiency drivers. In aggregate, our efforts should drive  $8 billion to $10 billion by the end of 2025.



https://economictimes.indiatimes.com/news/international/business/intel-set-to-lay-offs-employees-as-it-cuts-billions-of-dollars-in-spending/articleshow/95140634.cms

29 Jan 2023


Intel is making a small accounting change that will have a big impact on the bottom line.


Effective Jan. 23, Intel has increased the estimated useful life of some production machinery and equipment from five years to eight years.


When you're a company like Intel, which pours many billions of dollars each year into equipment necessary to manufacture semiconductors, a change like this will have an enormous impact on the income statement. Intel expects this accounting change to result in a $4.2 billion reduction in total depreciation expense in 2023. You read that right -- $4.2 billion.

https://www.fool.com/investing/2023/01/29/how-intel-instantly-slashed-costs-by-42-billion/



Intel’s Earnings ‘Collapse’ And Its Comeback Plan: 7 Things To Know

BY DYLAN MARTIN

FEBRUARY 01, 2023, 05:18 PM EST

https://www.crn.com/news/components-peripherals/intel-s-earnings-collapse-and-its-comeback-plan-7-things-to-know

18 June 2023

By establishing a stand-alone business group, the manufacturing organization will be able to charge 1.5-3x times the regular price for expedited requests, increasing accountability and reducing the overall number of such requests. Other identified areas for cost savings include reducing test sort times, adjusting ramp rates, optimizing product architecture, and managing sample production. Finally, these initiatives are expected to generate cost savings of $4-$5 billion over time.



21 June 2023

More on cost reduction possible from Internal Foundry
https://www.intel.com/content/www/us/en/newsroom/news/intel-update-internal-foundry-model.html#gs.35ga7r

https://semiwiki.com/forum/index.php?threads/intel-provides-update-on-internal-foundry-model.18234/


Cost Cuts Help Intel Turn a Profit After Two Quarters Despite Revenue Struggles
By KEVIN GEORGE Published July 28, 2023
https://www.investopedia.com/cost-cuts-help-intel-turn-a-profit-7566787




AMD vs Intel


https://www.tomshardware.com/features/amd-vs-intel-cpus


https://www.digitaltrends.com/computing/amd-vs-intel/





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