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Vodafone will struggle to get clean exit in Spain
  + stars: | 2023-10-30 | by ( ) www.reuters.com   time to read: +2 min
REUTERS/Toby Melville Acquire Licensing RightsLONDON, Oct 30 (Reuters Breakingviews) - Vodafone’s (VOD.L) boss Margherita Della Valle is cleaning up the sprawling 21 billion pound telecom group, but it’s a tough job. A potentially messy exit in Spain illustrates the point. Della Valle lacks an obvious partner in the country: local giant Telefónica (TEF.MC) is too big, while rivals Orange (ORAN.PA) and MásMóvil are merging with one another. As a result, Vodafone may have found itself a potentially problematic counterparty for the Spanish business, which Della Valle has put under strategic review. Investors might be reassured that Della Valle is making things happen, but a clean break in Spain looks increasingly unlikely.
Persons: Toby Melville, Margherita Della Valle, Della Valle, Eamonn O’Hare, Expansión, Zegona, Pamela Barbaglia, Liam Proud, Streisand Neto Organizations: Vodafone, REUTERS, Reuters, Orange, Zegona Communications, Virgin Media, Bloomberg, Deutsche Bank, ING, Reuters Graphics Reuters, X, Thomson Locations: London, Britain, Spain
Intel’s reverse bullwhip is strong
  + stars: | 2023-10-27 | by ( ) www.reuters.com   time to read: +2 min
The $150 billion chip giant has weathered a post-Covid maelstrom as an initial work-from-home-driven boost to PC sales slammed into reverse, denting sales and the company’s chunky gross profit margin. Growth isn’t back, but results released on Thursday show the decline is slowing and a new division has promise. At least one pandemic bullwhip might be close to having run its course. Reuters GraphicsBetter yet, Intel’s foundry business - Gelsinger’s push to start making chips designed by others - is narrowing its losses while growing revenue and scaling up. Though many customers are signing up on the condition that Intel’s manufacturing tech reaches certain milestones, that unit is its future.
Persons: Pat Gelsinger, Jonathan Guilford, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, Intel, Taiwan Semiconductor Manufacturing, X, Thomson
Nvidia and AMD could sell PC chips as soon as 2025, one of the people familiar with the matter said. Nvidia and AMD would join Qualcomm (QCOM.O), which has been making Arm-based chips for laptops since 2016. Nvidia spokesperson Ken Brown, AMD spokesperson Brandi Marina, Arm spokesperson Kristen Ray and Microsoft spokesperson Pete Wootton all declined to comment. Executives at Microsoft have observed how efficient Apple’s Arm-based chips are, including with AI processing, and desire to attain similar performance, one of the sources said. AMD's entry into the Arm-based PC market was earlier reported by chip-focused publication SemiAccurate.
Persons: Intel’s, Ken Brown, Brandi Marina, Kristen Ray, Pete Wootton, , Jay Goldberg, Will Moss, Stephen Nellis, Max A, Kenneth Li, Josie Kao Organizations: NVIDIA, Handout, REUTERS, Nvidia, Arm Holdings, Reuters, Windows, Apple, IDC, Devices, AMD, Qualcomm, Microsoft, Intel, D2D, Software, Thomson Locations: Santa Clara , California, San Francisco
A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. The effort in Ireland is Intel’s first attempt at high-volume manufacturing using EUV technology. Beyond its existing facilities in Ireland, Intel plans to build a big chip complex in Germany and semiconductor assembly and test facility in Poland. The three facilities will help create a first-of-its-kind end-to-end advanced semiconductor manufacturing value chain in Europe, Intel said. The new factory will double Intel’s manufacturing space in Ireland, where it is one of the country’s largest multinational employers with 4,900 people, around half its European workforce.
Persons: Dado Ruvic, Intel’s, ” Ann Kelleher Organizations: DUBLIN, Reuters, Intel, REUTERS, U.S ., Taiwan Semiconductor Manufacturing, PCs, U.S Locations: Ireland, U.S, Europe, Leixlip, Dublin, Portland, Hillsboro , Oregon, Arizona, Germany, Poland
Fixing Intel ends with taking it apart
  + stars: | 2023-09-29 | by ( Robert Cyran | ) www.reuters.com   time to read: +4 min
A man walks past an Intel wall at the 2009 Computex trade show in Taipei June 3, 2009. REUTERS/Pichi Chuang Acquire Licensing RightsNEW YORK, Sept 29 (Reuters Breakingviews) - Intel (INTC.O) will have to get out of its own way. But now that its manufacturing technology has fallen behind, it’s dragging down both sides of the business. Snag is, Intel’s manufacturing arm will always have a reason to prioritize its own chips to support its design business. CONTEXT NEWSIntel announced on Sept. 29 the start of high volume manufacturing using its Intel 4 process technology at a plant in Leixlip, Ireland.
Persons: Pichi Chuang, Boss Pat Gelsinger, Intel’s, Gelsinger, Jonathan Guilford, Sharon Lam Organizations: Intel, Electronics, Reuters, Thomson Locations: Taipei, Taiwan, Arizona, Leixlip, Ireland
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Persons: Dow Jones Locations: germany
Warner Bros Discovery re-bundles the bundle
  + stars: | 2023-09-07 | by ( ) www.reuters.com   time to read: +2 min
NEW YORK, Sept 7 (Reuters Breakingviews) - Warner Bros Discovery (WBD.O) is taking bundling to the max. The $27 billion entertainment company wants to add live sports from the National Basketball Association and Major League Baseball to its streaming service, free for a limited time, according to Bloomberg. Boss David Zaslav said on Wednesday at a Goldman Sachs conference that CNN will be available too. Warner Bros unveiled its new streaming service Max, which includes HBO, in April. The industry is packed with competitors, and at $16 a month, Max is already one of the most expensive.
Persons: Boss David Zaslav, Goldman Sachs, Max, Walt Disney, Jennifer Saba, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, Warner Bros Discovery, National Basketball Association, Major League Baseball, Bloomberg, Goldman, CNN, Warner Bros, HBO, Cable, Charter Communications, ESPN, X, Thomson
Direct Line stays in ditch but now faces right way
  + stars: | 2023-09-07 | by ( ) www.reuters.com   time to read: +2 min
Vehicles are seen on the M1 motorway in Milton Keynes following the outbreak of the coronavirus disease (COVID-19), Milton Keynes, Britain May 11, 2020. REUTERS/Andrew Boyers Acquire Licensing RightsLONDON, Sept 7 (Reuters Breakingviews) - Direct Line (DLGD.L) is still in the ditch. The good news is that the company is at least now facing the right way. Direct Line’s scope to actually exit its ditch hinges on customers swallowing the price rises it’s belatedly pushing through. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Milton Keynes, Andrew Boyers, Adam Winslow, George Hay, Hong Kong, Neil Unmack, Streisand Neto Organizations: REUTERS, Reuters, RSA, X, Hong, Thomson Locations: Milton Keynes, Britain
GameStop’s success doesn’t belong in a meme
  + stars: | 2023-09-07 | by ( ) www.reuters.com   time to read: +2 min
NEW YORK, Sept 7 (Reuters Breakingviews) - Meme-stock success might look more whimper than bang. GameStop (GME.N), the poster-child for pandemic-era retail-trader enthusiasm, reported second-quarter results on Wednesday that showed losses narrowing and positive, if miniscule, adjusted EBITDA. It’s an improvement on the path to sustainability, especially compared to other retail darlings like bankrupt Bed Bath & Beyond. Hardware sales fell 18% from the prior quarter, as the after-effects of supply shortages fade. GameStop’s share price may still be well above 2019 levels, but its ambitions are as low as ever.
Persons: hasn’t, Ryan Cohen, Jonathan Guilford, Hong Kong, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, GameStop, X, Hong, Thomson Locations: Grapevine , Texas
Saudi’s sweetened oil lollipop betrays its nerves
  + stars: | 2023-09-06 | by ( ) www.reuters.com   time to read: +2 min
LONDON, Sept 6 (Reuters Breakingviews) - Prince Abdulaziz bin Salman thinks he needs to sweeten his oil lollipop. The Saudi energy minister has announced that the world’s top oil exporter will extend its 1 million barrels a day production cuts for another three months until the end of this year. On the surface, global trends are helpful for oil, reducing the need for extended OPEC+ cuts. Besides uncertainties over the effectiveness of China’s latest property measures, one surprise has been the strength of Iranian supplies, which are set to rise by 1 million barrels this year to 3.5 million barrels per day by late September. Moreover, Washington may not sit idly by if higher oil prices sabotage the Federal Reserve’s inflation target and damage the economy.
Persons: Prince Abdulaziz bin Salman, Brent, Yawen Chen, Hong Kong, Neil Unmack, Streisand Neto Organizations: Reuters, Organization of, Petroleum, X, Hong, Thomson Locations: Saudi, Russia, U.S, China, Washington
Intel’s Tower deal sidesteps competition snafu
  + stars: | 2023-09-05 | by ( ) www.reuters.com   time to read: +2 min
On Tuesday, $155 billion chip giant Intel (INTC.O) inked a new partnership with Tower Semiconductor (TSEM.TA), which Intel boss Pat Gelsinger recently gave up on acquiring for $5 billion. The deal will see Tower spend $300 million on equipment at Intel’s New Mexico campus, bolstering Gelsinger’s nascent chip-manufacturing-for-hire services. Intel ended its year-and-a-half-long quest to acquire Tower in August, after failing to win sign-off from Chinese antitrust enforcers. Signed in February 2022, the deal was aimed at strengthening Intel’s pivot into manufacturing chips designed by others by bringing in Tower’s know-how. By signing up Tower as a partner, Gelsinger wins a chunk of its business without the trouble of competition roadblocks.
Persons: Pat Gelsinger, Gelsinger, Jonathan Guilford, Hong Kong, Lauern Silva Laughlin, Sharon Lam Organizations: Intel, Reuters, Tower Semiconductor, Intel’s, X, Hong, Thomson Locations: Las Vegas , Nevada, U.S, Mexico, Tower’s
Burning Man’s libertarian dream gets reality check
  + stars: | 2023-09-05 | by ( ) www.reuters.com   time to read: +2 min
Vehicles are seen departing the Burning Man festival in Black Rock City, Nevada, U.S., September 4, 2023. REUTERS/Matt Mills McKnight Acquire Licensing RightsNEW YORK, Sept 5 (Reuters Breakingviews) - “Exodus Operations have officially begun” is the self-important way organizers described allowing over 60,000 mud-bound attendees to leave Burning Man on Monday. The anarcho-arts festival’s rain-soaked disaster highlights the tension between its founding libertarian ethos and smoothly running operations of this size. Burning Man is the latest, after freak rainstorms turned its usually arid desert venue into a mud-pit on Saturday, necessitating a shelter-in-place order. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Matt Mills McKnight, , rainstorms, Elon Musk, Ray Dalio, Grover Norquist, Robert Cyran, Hong Kong, Jonathan Guliford, Sharon Lam Organizations: REUTERS, Reuters, Operations, X, Intel’s, Hong, Thomson Locations: Rock City , Nevada, U.S, Woodstock
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/intel-scraps-tower-acquisition-after-china-fails-to-approve-deal-f59dd70f
Persons: Dow Jones
China does Intel a small favor
  + stars: | 2023-08-16 | by ( Jonathan Guilford | ) www.reuters.com   time to read: +3 min
Acquire Licensing RightsNEW YORK, Aug 16 (Reuters Breakingviews) - Intel (INTC.O) can thank China later. The chipmaker on Wednesday terminated its $5.4 billion acquisition of Tower Semiconductor (TSEM.TA), after failing to secure approval from the country’s State Administration for Market Regulation. Beijing’s trustbusters are providing a helpful escape route from the intensifying technology trade war. Reuters GraphicsAdding Tower would have helped Intel boss Pat Gelsinger with his strategic pivot to making semiconductors designed by others. Tower uses old technology, however, while Intel’s new customers, including the U.S. Department of Defense and Qualcomm, want cutting-edge fabrication.
Persons: Pat Gelsinger, MaxLinear, China’s, Jeffrey Goldfarb, Sharon Lam Organizations: Dow Jones Industrial, Intel, Reuters, Tower Semiconductor, Administration, Market, NXP Semiconductors, U.S . Department of Defense, Qualcomm, Wall Street Journal, Motion Technology, Cisco Systems, Acacia Communications, Thomson Locations: San Diego , California, China, country’s, Washington, Beijing
Arm IPO depends on more than Big Tech support
  + stars: | 2023-08-14 | by ( Karen Kwok | ) www.reuters.com   time to read: +4 min
REUTERS/Dado Ruvic/IllustrationLONDON, Aug 14 (Reuters Breakingviews) - Arm is phoning Big Tech friends for help with its initial public offering. Backing from some of the world’s largest technology companies would also provide a useful marketing boost. Investments from big tech companies risk scrutiny from antitrust regulators, who previously blocked chip specialist Nvidia from buying Arm. Reuters Graphics Reuters GraphicsArm and its owner, Japan’s SoftBank Group (9984.T), will therefore need to win over big institutional investors. That’s well below the $60 billion to $70 billion that Bloomberg recently reported Arm is aiming for.
Persons: Dado Ruvic, Rene Haas, Taiwan’s TSMC, Japan’s, Bernstein, Peter Thal Larsen, Oliver Taslic Organizations: REUTERS, Reuters, Big Tech, Nvidia, Apple, Google, Microsoft, Investments, U.S . Federal Trade Commission, Reuters Graphics, Cadence Design Systems, Bloomberg, Reuters Graphics Reuters, Intel, Samsung Electronics, Japan’s SoftBank, Nasdaq, Thomson Locations: U.S, ASML, Cambridge
The chip industry is keen to protect its profits in China as the Biden administration considers another round of restrictions on chip exports to China. The Biden administration is considering updating a sweeping set of rules imposed in October to hobble China's chip industry and a new executive order restricting some outbound investment. Not every official is expected to meet with every company, the source who spoke on condition of anonymity added. Further rule-tightening by U.S. officials risks "disrupting supply chains, causing significant market uncertainty, and prompting continued escalatory retaliation by China," the industry group said. "The availability of Gaudi2 in China continues Intel’s nearly 40-year history of delivering innovative yet legally-compliant products to this key growth market," Intel said in a statement.
Persons: Antony Blinken, Gina Raimondo, Lael Brainard, Jake Sullivan, Biden, Matthew Miller, chafed, hobble, Blinken, Pat Gelsinger, Raimondo, David Shepardson, Andrea Shalal, Simon Lewis, Stephen Nellis, Susan Heavey, Matthew Lewis, Nick Zieminski Organizations: Biden, National Economic, National Security, Intel, Qualcomm, Nvidia, Semiconductor Industry Association, SIA, Department, Administration, White, Reuters, Commerce Department, U.S, Huawei Technology Co, San, Thomson Locations: China, U.S, Washington, Intel’s, San Francisco
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REUTERS/Brian Snyder/File PhotoMENLO PARK, California (Reuters) - Oracle on Wednesday said that it has modified its flagship database software to work on a new category of computing chip, starting with chips from Ampere Computing, a startup founded by former Intel executives. Oracle’s database software is used by major banks and corporations to track transactions. On Wednesday, Oracle said that the database will now also run on chips made based on a technological architecture from Arm Ltd, the same underlying technology that is in mobile phones. Ellison said Ampere’s chips are much more power efficient than offerings from its other two major chip suppliers, Advanced Micro Devices and Nvidia. By upgrading to Ampere, we’re able to take that room, double the compute and stay within the same power envelope,” Ellison said.
Persons: Brian Snyder, Ampere, Intel’s, , We’ve, we’ve, Larry Ellison, Ellison, we’re, ” Ellison Organizations: REUTERS, MENLO, Oracle, Ampere Computing, Intel, Arm Ltd, Ampere, Amazon Web Services, Devices, Nvidia Locations: Burlington , Massachusetts, U.S, , California, Ampere
‘Intel Outside’ is more like it these days
  + stars: | 2023-06-21 | by ( ) www.reuters.com   time to read: +2 min
The cash will come in handy for the company whose “Intel Inside” campaign is part of marketing lore, but the benefits of putting the subsidiary on a path to a standalone future are bigger. IMS dominates a specialized niche of semiconductor manufacturing, making laser-based tools that construct masks used to etch complex patterns on silicon-wafer circuitry. With Intel, Taiwan Semiconductor Manufacturing Corp (2330.TW), and others rushing to build plants, there’s plenty of business. Intel’s own ambitious plans, including a recently unveiled $33 billion expansion in Germany, have opened it up to talking with outside investors. IMS might benefit similarly from being outside Intel.
Persons: Robert Cyran, Jeffrey Goldfarb, Katrina Hamlin Organizations: YORK, Reuters, IMS, Bain Capital, Intel, Taiwan Semiconductor Manufacturing Corp, Twitter, Thomson Locations: Germany, Cava
SoftBank’s Arm IPO set for double stroke of luck
  + stars: | 2023-06-13 | by ( Karen Kwok | ) www.reuters.com   time to read: +3 min
LONDON, June 13 (Reuters Breakingviews) - SoftBank Group (9984.T) boss Masayoshi Son must be breathing a sigh of relief over the forthcoming float of his chip designer Arm. In April it announced plans to work with Arm to ensure that Intel’s factories can produce chips based on the UK group’s designs. The second, and perhaps more important, stroke of luck is the ongoing valuation frenzy for companies linked to artificial intelligence. Follow @karenkkwok on TwitterCONTEXT NEWSIntel is in talks with SoftBank Group’s Arm to be an anchor investor in the chip designer’s initial public offering, Reuters reported on June 12, citing a source familiar with the matter. Shares in SoftBank, which bought Arm in 2016, rose 5% to 6,310 yen on June 13.
Persons: Masayoshi, he’d, Jefferies, Arm’s, SoftBank, Liam Proud, Pranav Kiran, Oliver Taslic Organizations: Reuters, SoftBank, Intel, Nvidia, Bloomberg, Philadelphia Semiconductor, Nasdaq, Thomson Locations: U.S, New York, SoftBank
Japan’s central bank forecasts that output will grow 1.4% in the fiscal year ending next March, surpassing the prepandemic peak. Photo: kimimasa mayama/ShutterstockTOKYO—You would think this was the capital of a fast-growing Asian tiger economy the way American CEOs are flocking here these days. Apple ’s Tim Cook , Google’s Sundar Pichai , OpenAI’s Sam Altman , Intel’s Patrick Gelsinger and Warren Buffett are among the bosses to show up in recent months. Better reserve in advance if you want the hotel’s executive suite.
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