Intel integration vs AMD modularity
Intel and the Danger of Integration
Perhaps it is simpler to say that Intel…was disrupted
this is the first time AMD has ever beat Intel to a process node. Not only that, but AMD will likely have at least an 18 month lead on Intel with 7nm, and I view that as conservative.
The company’s integrated model resulted in incredible margins for years, and every time there was the possibility of a change in approach Intel’s executives chose to keep those margins.
Perhaps it is simpler to say that Intel…was disrupted
Ben’s post nails the idea that Intel thought no matter what, it could out-manufacture everyone. And that was true for a very long time. It was just as true that Microsoft could out-software most anyone.
So first thing, if innovation is focused on first and foremost being proprietary vs solving problems people have, then I think you’ll always run into trouble.
Intel was always focused on getting the ecosystem to rally around what would make the most money, but just as important was managing what chips could be used where.
Disruption happens slowly for sure, and then quickly.
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