Aug 8, 2020
Craig discusses the Failure to Innovate at Intel and why that has heads rolling this week.
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Automated Machine-Generated Transcript:
[00:00:00] You remember those Intel inside commercials, they used to be all over the place. Stickers on computers as well. Things are changing in a big way for Intel
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[00:01:00] Intel has it's been around for a long time. Intel used to be a memory company. And they got approached to make some processors. If you ask me, they've never been a particularly great processor company. I think they made some fundamental mistakes. They've basically stuck with an architecture that's 40 years old now. I think that's really handicapped them.
They are doing a lot of work in what's known as the SIS arena which are these complex chips versus what's happening now everywhere else. Look at that Android phone that you have, those Android phones are not using any of these Intel chips. They might use a well an RF chip, radio-frequency chip. But they're not using any of the main core type stuff.
[00:02:00] Many of the most phone makers now are using like the Qualcomm snapdragons they're using. Samsung has her Exynos. Kirin has one they're high silicone. These are all mobile processors that are used for a lot of different devices that are out there. Of course, Apple has their own too. Right now. I think it's the A12 Bionic is what they call it.
Very, very good processors. And they are using a completely different concept from Intel. They are using a concept of the more simple, the design of the processor, the faster we're going to be able to make it. So they let the compilers that compile the software to make the binary executable that you're using.
[00:03:00] They had the compilers do most of the work. And you look at the statistics between Cisco and risk. And, uh, you could argue in some cases is faster, but overall the risk is faster. Plus these risk chips tend to be a lot cheaper. Now, part of what we have in the chip Wars is the need for speed and also so less consumption of electricity.
And lower consumption. Electricity also typically means lower temperatures. So you don't have to cool them as much. So if you have a mobile device, you wanted to use less power and have less heat so that you can run it longer, right? Wouldn't you rather have a laptop that ran for 1224 hours than one that just ran for an hour or two?
[00:04:00] So way back when Apple switched from IBM's PowerPC design. Okay. Over to Intel chips and one, yeah, the main reasons it did that is because at IBM not delivering on low power consumption processors. Now the power chips are. Amazing amazing. And if you have a server or a desktop and that your software will run on power chips, there is nothing better.
I'm just shocked and amazed running Linux on some of these machines, right? Uh, IBM has done an amazing job with that processor, but because you couldn't put one of these processors, IBM power processors reasonably into a laptop, Intel said, Hey, um, You either have to cut the power consumption and the heat generation, or we're going to have to move.
[00:05:00] And IBM did not meet the deadlines. I'm making a very long story kind of short. And so Apple said goodbye and ended up switching over to Intel who could deliver the power consumption. Apple had been asking for not, not as good as they had asked for, but much, much better than the power PC. As time has gone on these chips are getting faster because of the types of processes that are involved in the manufacturing.
There is. Just to simplify everything. Uh, the thickness of it, the wafers and of the layers makes a very big distance difference because the distance that the electricity has to flow inside of the chip equates to the speed of the chip and can also equate to the resistance the chip provides, which means more heat and more power.
[00:06:00] So you want these chips to be smaller and smaller and have smaller and smaller innards if you will. So, uh, Intel has been promising for a long time that it would have what is called seven-nanometer parts. Well, um, Intel has had just endless problems with. Manufacturing some of these chips. So back in 2013, Intel's original roadmap was just spent 25th, 2014, 2015 to come up with a 14-nanometer node and then moved to 10 nanometers in 2016, 17, but they had an endless string of problems and setbacks with this 10 nanometer.
[00:07:00] So Intel ended up spending five years. With 14 nanometer nodes, which means. Again, more power consumption and more heat and not as fast. So in 2019, they started to deliver, it was kind of shaky here, 10 nanometers. So I don't want to get into this cause, you know, no, I can hear people kind of the brains tuning out a little bit on this and Intel still doesn't have 10 nanometers, desktop or server parts.
And now what they really need is something to compete because AMD advanced micro devices whom I've liked for many, many years. Has really returned to another golden age. They had some amazing processors. AMD had 64-bit processors before Intel and Intel. When they came out with 64-bit processors had to be AMD compatible.
That's how far behind Intel was? How was that for an embarrassment, right. Intel considering themselves. You know, the creator and the arbitrator of these 80 series, if you will, uh, chips that are out there, um, Having to follow the lead of their biggest competitors. You're in the marketplace. Very, very, very bad.
[00:08:00] So AMD now has this, what they're calling Zen architecture, and their thread ripper core counts. It's just clean. Amazing, and MDs is even starting to get attention from laptop OEMs as well. Intel also missed out on the smartphone revolution. So they have been getting black guy after black, after black guy.
And what's the latest Intel is being completely dumped by Apple. Apple has built its own design house, using these simpler designs, which are using a much tighter process than Intel has. They're much cheaper to build. They use less electricity, it goes on and on and on. So it Apple has his own arm design house for the iPhone and iPad.
[00:09:00] It's going to be upscaling these arm chips to the Mac, laptops, and desktops. And we're going to see. Two of those models this year. So guess what people have been losing their jobs over at Intel? What a fiasco over there. It's just absolutely crazy. Right? When we come back, we've got a lot to talk about. Um, We'll talk a little bit about the Twitter hack and remote working here.
Is it not working for you and your company? We'll talk about the likely reasons. Why so stick around. You're listening to Craig Peterson right here on WGAN. Make sure you subscribe. Craig peterson.com/subscribe and get my weekly newsletter.
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