So a few weeks ago we took a look at whether or not Intel may be in trouble due to the rising popularity of ARM processors and looked at their position in the Edge Computing sector (Read the full insight here: Is Intel in Trouble?). This week has brought the news that Intel's 7nm process node will be delayed for at least six months and that their Chief Engineer Officer, Murthy Renduchintala, will be leaving the company on August 3rd. Renduchintala ran the Technology, Systems Architecture, and Client Group (TSCG) which includes the chip manufacturing division that has run into issues in recent years, with delays to their 10nm process happening in previous years, and now this more recent delay puts them further behind schedule in their roadmap. TSCG will be split up between five Intel executives who report directly to CEO Bob Swan in the wake of Renduchintala leaving.
It is encouraging that there will be direct involvement from the CEO, Intel still has their work cut out for them. Their biggest competitor AMD has been selling chips based on a 7nm architecture for months, while Intel now has to play catch up. Also, the leading chip manufacturers Samsung and TSMC both have already developed the capability to produce 5nm chips, with Apple purchasing large volumes of these chips from TSMC for their next iPhone. Meanwhile, Intel is not scheduled to start releasing 5nm architecture until 2024, which is arguably a very ambitious goal considering their delays so far.
To help get them past their manufacturing woes, Intel has ordered from TSMC for manufacturing Intel's 7nm architecture, but it is unclear if this will be a lasting partnership or just a temporary fix. Intel could decide to focus only on the design of the chips and leave the manufacturing to another company (something that AMD already does), but this would go against Intel's long history of in-house production. Between these manufacturing problems and the potential new popularity of ARM processors as discussed in the previous insight, this is a moment that Intel will have to decide what direction to take the company.
Given the need to compete in Intel's core business and catch up to their competitors, Intel could decide to focus their development efforts on that problem which would open up an opportunity for other companies to take advantage and become a new leader in the Edge Computing sector. Intel could also decide to take this moment to reinvent themselves and focus more on their emerging platforms, allowing them to become dominant in the new industries as their dominance fades in the processor industry. While the future for Intel is unclear and impossible to predict, whatever choice they make should provide an opportunity for companies to either compete with Intel in edge computing to become a leader in the sector or set themselves up as an attractive acquisition target for Intel if they decide to focus on future platforms.
To see Intel's current position in the sector and see where new opportunities may exist, check out the Magic Number® Edge Computing Patent Forecast®.
