this post was submitted on 02 Nov 2024
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Who possibly saw that if you kill your manufacturing and buy from a company with monopoly power, they could write there own profits.
Sometimes big companies are really dumb.
While in reality TSMC gave Intel a 40% discount, a discount that was only discontinued, because Gelsinger trash talked TSMC!
So you are right they were dumb, but you are completely wrong about the why and how.
But of course based only on this article, it's impossible to get that part right.
Or TSMC was always planning to raise the price and Gelsinger just gave them an excuse to do so sooner while not losing face or worrying other clients too much.
Maybe, personally I think they sold to Intel cheap to discourage them from investing heavily in production. Which of course they did anyway.
But I wouldn't be surprised if the price they had with TSMC with the steep discount, would be cheaper than Intels own production.