To The Moon

$Intel(INTC)$ announced Lip-Bu Tan to take over as the new CEO, the entire Chinese circle can not restrain the excitement, after all, $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$ $Broadcom(AVGO)$ are now Chinese CEOs.

Lip-Bu Tans background, qualifications, but also fully worthy of the current position, because he was previously a director of Intel, but because of the concept of different in August 24 resigned from the post.

Why the market for think Lip-Bu Tan really can change Intel?

The main reason for the board's resignation was dissatisfaction with the organization's structure and "conservative and outdated" corporate culture, and Intel's financial results show that the expense side of the business far exceeds that of NVDA/AMD, so invchenestors believe that he will solve this problem;

His industry credentials make him someone who really understands how to provide customer-centric support to the foundry ecosystem, so the market believes he will do a better job than his predecessor, Pat Gelsinger, and may be able to break even without relying on technologies such as "Tainanite" (meaning NVDA/TSM).A separate IPO like $GLOBALFOUNDRIES Inc.(GFS)$ is also not out of the question.

Although TSMC is leading in 2nm advanced process, Intel could theoretically catch up or overtake if it optimizes its architecture on 1.8 nm or 1.4 nm with new technologies such as High NA EUV lithography.

Will it work?

Theoretically, any optimistic investor expectations can be reflected in the stock price, but specifically, the easier way to achieve this is to "reduce costs and increase efficiency", such as drastically reducing staff to optimize the organization (take a cue from Elon).

A lot of people are discussing his views on the IFS business, and what we can see from his oath of office so far is that he clearly supports the Foundry strategy and recognizes Gelsinger's push to transform traditional chipmakers into foundries (which produce chips for external customers), with a focus on efficiency and accountability: for example, accelerating technology iteration, solving manufacturing bottlenecks, and restructuring supply chain management, thus reducing slow execution and high costs.thereby reducing problems such as slow execution and high costs.

As for catching up with the technology gap, at the moment, Intel does not have this big environment, a very important point is that the semiconductor talent, competitive environment, supply chain, etc., are almost all concentrated in East Asia, that is, the Chinese community + Japan and South Korea.This itself is the world's most efficiency-seeking region (involutional culture).So I'm afraid that opening a separate line in North America is not just something that can be forced by "tariffs" or by other countries' machines.

$Taiwan Semiconductor Manufacturing(TSM)$ 's advantage is more of a soft power.