Layoffs at INTC

[Admin]

"The planned job losses come as Intel shifts its focus toward mobile applications, data centers and connectivity technology."

www.ibtimes.com/intel-corp-intc-cut-12000-jobs-globally-or-11-its-workforce-pc-sales-plummet-2356283

INTC is now coming straight at us.

[Admin]

...and AMCC is running right at INTC. No fear.

[christopher]

What are the thoughts of a INTC purchasing a AMCC situation? or is it too late to matter?

is this more likely than a QCOM and AMCC acquisition?

[Admin]

You know Chris, it's funny that you mention this, I was just thinking about ARM and INTC.

What ARM has is a fundamentally different business model than INTC. What ARM does is to create the overall cpu architecture, and then license that technology to various competitors in various markets, many of whom outsource actual fabrication. So this enables economies of scale where it makes sense (design and marketing) and outsources what doesn't (fabrication and cpu architecture). It enables ARM to attack an entrenched incumbent from multiple different directions. It enables companies like AMCC, CAVM, AMD, BRCM, TXN, MRVL, etc. to take the existing technology they have, add their own take on the ARM CPU to that and attack markets that exist in, for example data centers, from multiple different directions. This new business model enables companies like AMCC to leverage what they do best (high speed connectivity). Much of the software infrastructure is now open source or coming from partner Vapor IO, Ubuntu, and others.

This is a business model that allows companies to address smaller markets at lower cost (the combination of being fab-less and licensing the CPU architecture). I think this is what gave QCOM a lock on the cell phone CPU market. Even though INTC has it's own fab, it can only afford to do that so long as it can maintain a near monopoly hold on the market. If that monopoly slips or markets shift, in-house fabrication at INTC could ultimately prove too costly. I think this is the reason for the panic at INTC we witnessed over the last couple of days. INTC has realized the implicit weakness of their position. INTC is a giant company and must maintain near monopoly positions in everything they do in order to meet expectations. ARM/AMCC is a much lower cost structure and can compete on a comparative shoe-string.

I don't think that AMCC is going to be sold any time soon, which may not be a bad thing. I also think the ramp is about to start. Are you ready?

[christopher]

"I don't think that AMCC is going to be sold any time soon,"

An emphasis on shareholder value would be great!

imagine if this rings true!

Yes, I am ready