The Complex Overclocking Crisis at Intel
The problematic CPUs span across the 13th to 14th generations, but Intel became aware of the problem first in 2022. At that time, the 14th generation CPUs had yet to be launched. Why did Intel not solve the issue before the launch?
The issue arose from CPUs running off-spec and experiencing crashes. A simple solution would be to buy a proper motherboard and run the CPU at its rated power, which would eliminate the “problems.”
Internal Challenges: Stock Buybacks, Bonuses, and Layoffs
Intel was quite busy dealing with stock buybacks, issuing huge bonuses, and firing a significant amount of their research and development (RD) staff. These issues were put on hold until they began to impact the company negatively, much like the 2023 issues faced by Boeing.
This “bug” can be attributed to the CPU receiving more voltage than it was designed to handle, affecting hard-core gamers and overclockers. It is not a massive outbreak like Heartbleed or floating point issues. It rarely causes a complete computer crash but can lead to game or program failures under extreme load.
Intel’s Technological Retreat and Market Challenges
The problem did not come to light until just a few months ago (perhaps around 3 to 4 months). Intel had not been able to verify the issue before that time. In 2022, it was not a significant issue, and tech experts did not mention it.
Intel’s CPUs may only be considered antiquated at best. They still produce impressive chips, but this is mainly due to their traditional dominance. A small company, Qualcomm, now produces chips for WiFi, Bluetooth, and 3G/4G/5G networks and is worth significantly more than Intel. Qualcomm even offered to buy Intel directly without merging, and Nvidia’s entry into chip design has yielded an astounding valuation of over 2 trillion USD, eclipsing Intel’s market cap by a staggering margin.
Strategic Miscalculations and Falling Behind
Intel has even started making chips for TSMC, but they are still struggling to maintain a competitive edge. TSMC’s advanced manufacturing capabilities (below 5nm), compared to Intel’s inability to go below 10nm for transistors, highlight the gap in technological advancement. Some of Apple’s chips are using 3nm technology today.
Intel once owned an ARM license, which they sold for a pittance, despite the potential to buy ARM without facing antitrust issues. They eventually acquired the Digital Equipment Corp chip division, but the legal shenanigans that surrounded this acquisition highlight the questionable practices of the time.
Intel’s focus on “not invented here” syndrome, particularly with the creation of the x86 64-bit architecture by AMD, led to a significant oversight. The Itanium project was a disaster, and discussions about Intel’s struggles may persist for years to come.
The Ongoing Impact of Milton Friedman Economics
Intel’s downfall can be attributed to its focus on Milton Friedman economics, where the cost of RD was prioritized over long-term investment. The founders of Intel would never have tolerated such a short-sighted approach. However, this strategy left Intel behind, with its value being higher than it was 20 years ago but not really competitive.
Intel has grown into a top-heavy bureaucratic monster, with excessive paper-pushing managers and insufficient RD personnel. This issue affects every company but Intel, with the management taking care of itself, leads to the firing of thousands of RD staff. Only a few companies survive this; examples include Apple and Microsoft, but Microsoft now feels top-heavy again.
Conclusion
Intel should have been the TSMC of chip manufacturing but fell short due to a combination of strategic missteps and excessive focus on shareholder interests over innovation. While this is a complex issue, it highlights the critical importance of RD investment and strategic foresight in remaining competitive in the rapidly evolving tech landscape.