The article further explores Intel's failure to capture the mobile market and its subsequent struggles, contrasting it with Microsoft's successful pivot under Satya Nadella. Intel's reluctance to become a foundry and manufacture ARM chips for third parties is highlighted as a missed opportunity. The article criticizes Intel's board for its strategic missteps and argues that Intel's future lies in focusing on its manufacturing capabilities rather than its products. It suggests that Intel's manufacturing prowess is critical for national security and that the U.S. government may need to intervene to ensure Intel's survival as a competitor to TSMC.
Key takeaways:
- IBM's decision to outsource the DOS operating system to Microsoft and use Intel's 8088 processor in the IBM PC led to Microsoft's dominance with DOS and Windows, and Intel's lock-in with the x86 instruction set.
- Intel's commitment to the CISC architecture, led by Pat Gelsinger, allowed it to maintain backward compatibility and leverage Moore's Law, but eventually led to challenges in the mobile market due to a lack of focus on efficiency.
- The launch of the iPhone in 2007 marked the end of Microsoft and Intel's dominance, as the shift to efficiency required rewriting software, diminishing the value of Microsoft's API and Intel's x86 instruction set.
- Intel's failure to adapt to the mobile market and its reluctance to become a foundry for ARM chips contributed to its decline, while TSMC's partnership with Apple allowed it to surpass Intel in manufacturing capabilities.