Apple CEO Tim Cook to take more than 40% pay cut

[u/geoxol]

https://apnews.com/article/technology-apple-inc-tim-cook-business-d056553b10120c4a968b562cb7ece5d2

[u/detectiveDollar]

I don't like Intel, hell I'm invested in AMD, but getting rid of fabs would be a huge mistake.

Fabs give Intel supply, not everyone is on the latest node so they can fab their chips with Intel, and shrinking transistors is getting harder and harder, so Intel may well catch up.

Plus, if Intel leaves the market it'll be what, just Samsung and TSMC left?

[u/[deleted] → u/detectiveDollar]

bro what are you on?? It is a winner-takes-all market, TSMC is the main player and the one everyone goes to. Samsung is 2nd. And a distant one in terms of performance and profitability. INTC can’t even sell their fab services to competitors, they can’t even fulfill their own orders and have to outsource to TSMC.

If you want Trailing Edge semis, there are other fabs to go to. INTC is in a Leading Edge fab business

[u/magmagon → u/[deleted]]

Winner takes all implies that the winner produces all the chips, which isn't true. There just isn't enough capacity to do so, so TSMC raised their prices.

For a lot of applications, there's no need to be on the cutting edge. Cost savings are more important in many low margin chip designs, which is why global foundries, microchip, NXP, etc are around. Intel already has contracts for their new fabs in Arizona. Going fabless would be a terrible idea.

[u/slashrshot → u/magmagon]

It is also a national security risk when the bulk of your products that carries most of your economy is produced at a single region that is currently in a politically tense situation.

That said, the incentive for capex extensive companies and shareholders returns dont align.
which is ironic because capex companies are the reason why they need a stock market anyway, to raise funding.