Replies to post #116846 on Intel Corp (INTC)

[fastpathguru]

Fundamentally, cost wise, Intel has the advantage. Here's a hint:

Being one generation ahead means they get the process shrink advantage of the new node, all else being equal in terms of feature set.

Plus, any vendor making an ARM SOC spends some share of the chip cost to TSMC, and to a lesser extent, in licensing to ARM, Imagination, and other IP vendors.

Intel's IP is predominately organic, and they keep 100% of the wafer margin for themselves.

Who else does what Intel does, such that you can draw a direct comparison against them?

A) Being a generation ahead means you spent a disproportionate amount of money to gain that lead.

B) Not too many of the beneficiaries of the trend compete directly with Intel by designing, manufacturing, and selling chips to product manufacturers. Apple builds end products with their chips. So does Samsung. They share a pittance with ARM (as chipguy will be happy to tell you) as opposed to a significant chunk to Intel, etc.

C) Other companies use chips in their products that are sold by vendors that are happy to take less margin for their chips than Intel is. OTOH, Qualcomm's margins are higher than Intel's... Especially when you're talking about NET margins, i.e. accounting for Intel's massive cap-ex...

fpg