Intel Corp (INTC)

[ibc]

JIT doesn't mean magic.

If I order a PC from Dell for overnight delivery, the chip doesn't magically go through Intel's fabs overnight. As you may know, it takes several weeks (6-8?).

Inventory exists as a buffer for these long lead times. This necessarily implies a forecast of end-user demand. When demand disappeared in 2012-2013, Intel had to run the fabs well below utilization levels to draw down inventory.