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An Interview with Intel CEO Bob Swan: Roundtable on Fabs and Future | 9L0-510 practice test and PDF Download

Intel has a really advanced yr forward. On the again of what should still be potent salary yr for 2020 as well as a widened scope of markets in which it participates, the important thing fundamentals at Intel corresponding to manufacturing provide those that follow the business take care of concern.  all through its existence, Intel’s key market leadership function has been its manufacturing excellence, so now in 2021, after several excessive-profile manufacturing delays, what does Intel deserve to accomplish this 12 months to be able to get again not off course? i was joined by means of a number of different journalists at a infrequent roundtable with Intel CEO Bob Swan, to ask about Intel’s future.

The Very rare possibility

entry to Intel’s C-level executives for anything else aside from financial evaluation is a really rare aspect certainly. In a global the place Intel’s competitors give the favourite tech press access to their most senior americans, Intel became separated from the crowd. So cue my shock when Intel provided us a seat at a roundtable with CEO Bob Swan, ahead of the enterprise’s bulletins on the annual CES exchange demonstrate and just ahead of the 2020 12 months-conclusion financial document. Now turned into an opportunity to ask Intel's desirable brass some interesting questions about the list.

observe that this is a roundtable, and never a one-on-one interview. In a one-on-one interview, specifically when you have on no account met earlier than, there is possibility to build a rapport, birth with some simpler questions and lead into some tough questions. there is the potential to set a degree of expectation, make the adult being interviewed at ease, and potentially increase what degree of aspect the interviewee needs to go into that particular day, and questions can be re-worded on the fly as necessary to get as plenty counsel as possible. In a roundtable like this one, it’s somewhat different. The time obtainable is divided between all of the press within the room (CEOs regularly have complicated stops, so it has to be complete on time). When there are six journalists and best 30 minutes to get every thing in, it offers each and every member of the click at optimum one query each, maybe one-point-five, sometimes zero-aspect-5. This capacity as an interviewer you have to choose which question concerns most to your audience, select one that they'll *really* answer (very important not to ask whatever you already comprehend they received’t reply), and dive right in. And so they did. conclusion-to-end, this round table became a 30 minute session, besides the fact that children handiest the latter 15 minutes ended up being mp;A time.

Bob Swan’s prepared Remarks

chuffed New yr! Thanks for becoming a member of us today. right as i was becoming a member of the call somebody was asserting it become respectable to have 2020 at the back of us – I couldn’t agree extra! at the identical time the start of the 12 months hasn’t been that first-rate simply in terms of stuff they should cope with, however it’s a pleasure to be here.

To birth I wish to kick off with a little bit about strategically what we’ve been up to which i know all of you had been at architecture Day – Pat (Patrick Moorhead), i do know you had been at Analyst Day. however I are looking to birth about strategically the place we’re going, the progress we’re making, and then a bit foreshadowing into what they predict you see on the eleventh (the CES press experience).

So first, I’ll birth with the market dynamics in terms of how they see it. it's, as you say, a very good time to be in semis (semiconductors), appropriate? The digitization of everything looks to be accelerating computing, and computing is all over. It’s not simply their notebook or their server, however everything appears to want excessive-efficiency compute and the workstation is primary as soon as again. so they dynamics of the market are extraordinarily favorable.

The 2nd aspect i would say is [that they need] to capitalize on these statistics-centric transitions. It requires, as you be aware of, massive transformation for your purchasers, and obviously for us, nonetheless it’s a enormous transformation in order that they are viewed adapting and developing the brand new applied sciences that are going to allow those transformations, like 5G, like AI, like self sustaining side.

after which the third element is, you know in some ways happily but in some ways alas, we’re no longer the only ones which have referred to this large chance in front of us. You comprehend, competitors is severe, and they in no way sleep. That potential they now have received to be on suitable of their video game, which they now have every intention to be, [especially] as they close out remaining 12 months and enter this 12 months. So we’re excited concerning the aggressive landscape – sometimes I wish it wouldn’t be as intense, but I consider it makes us more suitable alongside the manner.

Intel showcasing networking, storage, Optane, compute, 5G

So the market overview is comparatively eye-catching. Strategically what we’ve been speaking about for the last couple of years in terms of their role during this market is simply to be the trusted performance chief, [one] that takes this insatiable urge for food for information and makes that information relevant and actionable through examining it, storing it, and relocating it quicker. [This means that] no matter if it’s a enterprise or a customer going through their personal digital transformation, their technologies are there to make the facts that everyone's getting after increasingly crucial.  And the third component i would say is that they recognize that for us, to obtain their desires, that requires us to transform ourselves on three basic dimensions.

One, as they represent it, and Pat i do know I examine each word you write (only Pat was outlined by way of identify), however from the CPU to the XPU. as the business evolves, as workloads evolve, having a lot of architectures, enhancing their core CPU, but also including extra architectures is increasingly vital.

Secondly, you comprehend, from Silicon to Platform. It’s no longer just the hardware, but how can they couple the hardware with application and with different technologies to construct structures that may delight their shoppers.

and then the third enviornment for us have been a transformation from what we’ve characterised as the average IDM (built-in equipment company) to a more up to date IDM. this is now not to do away with the IDM, as they feel it is a special abilities of this business. but they know the business has evolved reasonably somewhat, they comprehend that leveraging design disaggregation and packaging technologies that the IDM of the future is going to be a little bit different than the IDM of the previous. That’s the third leg of their type of transformation.

Then to sort of convey all of it collectively: [it’s] their intensity and focus on both execution and [the] tightly coupled re-energizing the lifestyle of the business. So we’ve moving in a tons more nimble manner as they see alternatives to develop and [to] innovate, as hostile to offer protection to what they built in the past. so that’s a little bit about what we’ve been as much as.

I also want to start with the type of momentum getting into the year. I suppose you guys, a yr ago I flagged you understand three primary areas that i believed were critical for us to increase execution. One become capacity, to make sure that they have the capability to fulfill the calls for of their customer base. 2nd was, once and for all, the ramp of 10nm. Third turned into to raise the cost of innovation of these distinctive/multiplicity of architectures.

so as they enter 2021, you be aware of, they constructed some really first rate momentum. undoubtedly we've much more to do, however yeah we’ve introduced over $20 billion in revenue over the final five years, and we’ve been chasing it, and chasing it is disruptive. So they entered the 12 months (2021) having nearly doubled their means over the course of the closing couple of years, and we’re going into 2021 you know with much more skill in place, both for 14nm but also for 10nm.

The 2nd area is 10nm itself. It became a yr in the past that they ultimately launched it, and throughout the path of the year going to second generation SuperFin, the greatest internode enhancement in transistor density ever for us. [It] was a huge introduction all the way through the direction of the 12 months and coupling that with their packaging expertise is variety of bringing them to lifestyles. [It] was a very crucial aspect of execution on 10nm.

10nm SuperFin

Then third is the products, and simply the expense of innovation. right through the direction of the 12 months, no matter if it turned into starting the yr with LakeField, or 5G SOCs, FPGAs, discrete pics, oneAPI – the amount of items that they launched throughout the direction of the year became in fact good momentum. and i would say that perhaps most importantly, the Tiger Lake launch all through the route of the year, that t ramped on the brand new node faster than they predicted. It grew more advantageous, the adoption [of Tiger Lake], the designs by using their clients become more than they expected. So they enter the 12 months with that momentum type of in the back of us, and the opportunity really to scale as they ended the yr.

The ultimate element I [want] to claim is about the execution as they exit the year. They launched [the] Ice Lake server product, you know, qualified it at the conclusion of the yr, began creation of the third technology of Xeon Scalable processors, and will ramp it within the first quarter. in order you know, that changed into an important launch to sort of finished the portfolio of products that they have, from LakeField firstly of the yr, all the method to server at the conclusion of the 12 months. so that’s, you recognize, a bit bit about strategically the place we’re headed, [and] the momentum they have getting into the yr.

just quickly on the belongings you’re going to hear about on the [press] conference on the eleventh. [To] birth with, i discussed the Ice Lake Xeon Scalable. subsequent year the client enterprise is going to, you understand, demonstrate extra advances and business firsts for nearly all types of experience in each section of the workstation market. right through the yr we’ll have four families of processors, from entry to premium, a really first rate lineup of products all the way through the course of the 12 months. In that lineup we’ll include some true laptop innovation coming in. Greg (Bryant) or Chris (Walker) will show off two applied sciences coming to market in 2021, together with the 11th Gen Core laptop processor Rocket Lake, as you recognize, and their next era processors, Alder Lake, which from their vantage factor represents a major leap forward in the x86 structure. So we’re definitely excited about the innovation on the laptop. So between server, client, cell, and desktop, they have a thrilling lineup of issues as they enter the yr.

CES 2020, Tiger Lake (10nm SuperFin) Wafer

The 2nd aspect they will discuss is Silicon to Platform – they are able to also enhance their platform offering within the year. they are able to launch their first ever 11th Gen Core Chromebooks, according to the Evo platform, and we’re going to debut the Intel Evo vPro platform as neatly, which goes to function the highest performance company computing device platform with probably the most comprehensive hardware based protection.

So [we’re] very excited about going beyond the silicon, the structures, now not only for Chromebooks however also you’re going to listen to from Annan how Mobileye is increasing its providing as neatly. That talk is about increasing autonomous car efforts globally, with 4 new testing places [in] Detroit, Tokyo, Shanghai and Paris, in the first part of 2021. [This is] in reality demonstrating the potential to have that type of rapid global deployment through leveraging the proprietary crowdsource mapping technology called RAM, or highway event management. So [we have] basically pleasing announcements coming from the Mobileye team on the 11th as well.

simply to wrap up: the demand for compute is pervasive. It’s not just the laptop or the server, it’s the network, on the area, in the vehicle, in the retail store, in the industrial environment, and that marvelous demand for compute, on billions and billions of devices, is a rich possibility for us to expand the role that they play in their consumer success. They consider like they have good momentum [from] 2020 in entering the 12 months, and we’re excited to display a bunch of exact innovation.

Patrick Moorhead, Moor Insights and analysis: are you able to provide the latest and most fulfilling on 10nm?

Bob Swan: There are a few add-ons to this. at the start, they now have three fabs ramping [up production] now. We’re constructing skill for this 12 months and the subsequent couple of years, and both entrance-end and back-conclusion yields were progressing as they ramp. They ramped even quicker in q4 2020. With this, as yields increase, unit expenses continue to come back down, and gross margins get better. but don’t forget it’s now not simply in regards to the procedure expertise, but additionally the products they build – I mean, they ramped every little thing throughout 2020. at the end of 2020, I suppose within the Q3 economic name, I stated that quantity on 10nm became 30% greater than they expected compared to the beginning of the 12 months. they have felt first rate about their design wins on 10nm, and appear to continue ramping 10nm throughout all three fabs as they exit their monetary 12 months 2020, into 2021.

Intel Roadmap, as per mid-2019

Paul Alcorn, Tom’s Hardware: one of the key benefits of Intel is that it manages its personal manufacturing deliver chain, despite the fact these days Intel has mentioned the use of external suppliers for key accessories. We're getting into an era, due to COVID and other political relations, where the scope for a sustained third-birthday party deliver may leave Intel on the again foot should it decide to outsource its market leading items. How does Intel stream forward in a future the place it blends its product lines with a mix of third-party derivatives, the give and economics of which should be further faraway from Intel's general handle?

Bob Swan: entry to provide has been a vital part of Intel’s product administration. A year ago, as they at the same time regarded into 2020, they expected that the computing device market might be develop or contract through about 1%. It felt reasonably flat, and the demand profile wasn't remarkable. Then as COVID hit, most of the business notion that the first half of the year turned into going to fall off in terms of demand. however then within the 2nd half of the year, demand grew like loopy and the mix of Intel’s items changed considerably. due to this fact, the complete ecosystem scrambled to gain tempo, and at Intel they had to react and agenda for that.

For Intel, here is their potential as an IDM (built-in equipment brand). whereas an IDM is still elegant on its ecosystem, it helps being the allocator as opposed to the allocatee - it potential a very good deal. If they feel about design disaggregation, where they may leverage a 3rd celebration foundry system, in any discussions that they try, in spite of the fact that they do not make these agreements occur, they all the time must analyze how they keep the advantages of being a [vertically integrated] IDM. This capability the capability to leverage Intel's measurement and scale, especially to get preferential treatment when allocation choices are being made. they have now got apply in the use of third birthday party supplies for their commodities, and as they plan to extend and use extra third birthday celebration foundries, protecting and securing the merits to Intel’s IDM method goes to be crucial.

Paul Alcorn: Is there scope for Intel to agree with sub-licensing leading technique node know-how from different foundries in an effort to use in its own manufacturing facilities?

Bob Swan: probably. I believe the strategically for Intel, the ecosystem has advanced over the remaining 10 years. If there are ways or opportunities to leverage other industry advancements, then it is going to be very front-and-core for Intel to capitalize on industry improvements. Intel is coming to the cognizance that they wouldn't have to do the entire innovations ourselves. So in that idea they might outsource, they could flow to using third birthday party IP, opening up their own manufacturing and turn into a foundry. Is there a situation during which Intel may use one more’s manner expertise in their own manufacturing? it really is certainly possible. The industry is evolving and they need to leverage that innovation, inside their walls or somewhere else, and take knowledge.

Mark Hachman, PCWorld: a question on the competition. If i'm a computer vendor, i will be able to buy from Intel, i can buy from AMD, or i will be able to go locate an Arm chip (or roll my own). With that in intellect, what's the competitive skills of Intel over the competitors?

Bob Swan: competition makes us more desirable and helps us to circulation sooner. It’s all about the rate of innovation, and then establishing a huge based mostly product providing. This capacity offering a number of products from intro to top rate, and for products to company, to the purchaser, for notebooks, for desktops, and offering a predictable annual cadence of management. It comes all the way down to Intel’s IDM knowledge – at Intel it is the competencies to the client base is that they don't seem to be going to include your increase. At Intel they need to have more capacity than crucial, and Intel has to be the allocator and have the inventory to satisfy the spikes in consumer demand. additionally on the potential – they work with engineers at these groups and co-optimize their items. We're a part of their design team, not simply the order taker.

Dave Altavilla, HotHardware: Is there an update on the development for Intel’s higher-conclusion Xe GPUs? How is it going, and the way do you see it competing within the gaming or the datacenter?

Bob Swan: here is anything that they have now had a few goes with, as you understand, once they began over two years in the past. in place of starting from scratch like they did with Larrabee, it become a case of how can they birth however this time with built-in pix. The system is set driving from built-in pics to discrete photos, and leveraging the identical design as a great deal as feasible (to allow scale up). You noticed the progress with Xe in 2020, with the launch of DG1, which we're very enthusiastic about. they have no longer given a date for DG2, but naturally they have potent intentions in this CPU to XPU area the place there are distinct architectures mandatory. Intel is going to make investments to extend GPU to entry up the stack over time. they can have true innovation in the next two years

Dr. Ian Cutress, AnandTech: Given Intel's place in market, its outlook for 2021, and the place the enterprise at present stands, what matters extra: its financial aspect or its technical aspect?

Bob Swan: Technical. however they’re no longer decoupled – one powers the other and vice versa. Their price of innovation, their cost of products, and their rate of funding helps one to force the other which feeds lower back in.

Raja Koduri, Intel SVP and Chief Architect

Dr. Ian Cutress: Intel has had a exact exodus of admired key technical very own in 2020, reminiscent of Renduchintala and Keller. the place does Intel see the way forward for its technical advantage coming from?

Bob Swan: Don’t overlook that Intel has 70,000 engineers! Intel’s heritage is technical. Their model for the longest time became to employ engineers appropriate out of their faculty campuses, and grow them in the equipment*. because the industry has moved on, once they consider about new architectures, and the ecosystem nevertheless needs to be growing from inside but also they are bringing in outsiders.

As you recognize, Jim left for private causes. When Murthy left, he become a lovely executive, but in so many ways it became ‘a way to get five engineers in the room once we’re making massive selections, no longer only 1?’ I consider it’s the realization that they are able to get more diverse features of view, extra technologists within the room, making massive time selections. As you comprehend we’ve carried out great promotions inside the business to fill these rolls, comparable to Ann Kelleher on technology building, Keyvan Esfarjani in manufacturing, Raja Koduri on company-vast architecture and application, and Josh Walden fills in the Jim Keller classification place as they look to fill that position on a everlasting basis. They even have Dr. Randhir Thakur from applied materials on their deliver chain. Having 5 senior, what I’d represent as striking, engineers in that room gives us more different idea on the know-how and the future. Then there's also the core hardware and software engineers that work for every of them, and i'm convinced they now have the choicest talent, through an extended shot, on the planet. Their expectations are to proceed to have the most efficient ability, and we’ll get it the same manner as they have recently, which is from the campuses and the competition.

*Ian: I frequently tackle the engineers which have been there 20+ years as Intel ‘lifers’

closing words from Bob Swan

As an organization, it has been a tricky couple of years [especially on the technology side]. but coming out of 2020, it should be the 5th finest yr in a row for income. They remember or not it's all about innovation and execution, and we're excited about what we'll do for clients in 2021.

despite the brief time to ask questions, there are a number of elements to spotlight.

1. retaining the Fabs

First, it appears like Intel is almost definitely going to keep its fabs. Bob again and again cited that Intel’s key competencies is as a vertically built-in company, and being capable of have the elements to scale out construction to be able to meet demand from clients, in addition to deal with spikes in that demand.  surely the question as as to whether Intel will have a sufficiently competitive manufacturing know-how to remain in such high demand nevertheless continues to be on the table for this remoted clarification, but their interpretation of this indicates that keeping the fabs internal permits Intel to remain agile for its valued clientele supply needs, anything that can also no longer be viable when the use of third celebration components.

2. Outsourcing simplest with preferential remedy

To that, and secondly, the remark Bob has made about simplest using third birthday celebration components such that Intel has preferential remedy and keeps an IDM-like talents (i.e., an identical merits to that of  being vertically integrated). This has huge implications because it boils right down to which third celebration resources Intel may trust the usage of. Intel has a significant financial advantage over a number of its direct rivals in the normal markets it performs, however for third party foundry, the rivals are different. Apple is TSMC’s lead accomplice on 5nm and gained’t be outbid, whereas AMD and Qualcomm take in lots of the 7nm volume now that Huawei is no longer a consumer. TSMC has already cited that it isn’t prepared to construct out further operations just for Intel, particularly in the event that they would be temporally restrained except Intel reaches parity on its own manufacturing. If Intel had been to outbid for ability against AMD or Qualcomm, then it places severe question marks on the gross margin, something that Bob Swan is awfully desparate to display screen and maintain in keeping with Intel’s ancient metrics. The other option would be Samsung, where Intel would should bid towards Samsung itself and NVIDIA for capacity.

three. Intel could sub-license method node tech

Third, that Intel might agree with licensing another fab expertise and integrate it into its personal. to place some viewpoint on this, all of these fabs (between Intel, TSMC and Samsung), use generally the equal machines to construct transistors on wafers. There are simplest just a few companies that make the hardware, and all three have primary funding in the entire gamers. The transformations within the know-how goes to be how those steps are constructed up, and computer-to-laptop ratio, as well as EDA tools in play. but an awful lot in the same means GlobalFoundries licensed Samsung’s 14nm for its own use, Intel may do the equal, at least in a facility or two. If Intel have been to do that, for example on its 7nm through licensing Samsung’s 5nm, it could re-channel research and building groups that have been working on its own 7nm over to Intel’s 5nm manner, the place they predict the company to debut nanoribbon transistors. losing its own 7nm and licensing someone else’s know-how could be an preliminary cost, time prolong, and influence gross margins for a 12 months or two, but focusing on its personal 5nm could be what Intel should restart its manufacturing arm. The indisputable fact that Bob didn’t instantly swat it away skill that it remains a sound alternative, chiefly as Intel looks to be committed to continuing to build out its fab expertise (as per the primary element).

four. Technical matters extra to Intel than fiscal

Fourth, Bob Swan when asked if technical or fiscal concerns more to Intel, he mentioned the technical facet concerns more. I should note that he pointed out that with out hesitation. a question always asked among a number of analysts is that if having a non-technical CEO is the right healthy for Intel, specially at a time when Intel’s future looks to be predicated on its technical delays than anything. however the fact that Bob acknowledges that Intel’s technical side is the place the enterprise needs to focal point offers me more hope. it all comes all the way down to no matter if Intel can have the correct technical people within the correct positions being in a position to make decisions that don’t require months of debate. Which also leads me on to the ultimate part…

5. not enough voices on the excellent

Fifth, the comments about Renduchintala took me unexpectedly. the nature of Murthy’s unexpected departure from Intel in July 2020 resulted in a few hushed inner most feedback as to what exactly changed into going on inner the 4 partitions. information had been raised that he become asked to depart, that he was forced to leave, or that he left as his place grew to be untenable with others. The fact that Bob has stated that Murthy’s departure has enabled the enterprise so as to add more technical voices to the future of Intel shows that Renduchintala’s identity was possibly rigid to commentary from similar stage peers. Renduchintala’s hiring was widely promoted in 2015, now not handiest for being a infrequent circumstance of Intel hiring from outside the enterprise to this kind of senior position, however also the $eight.1m signing on bonus with $17m in extra incentives (culminated in a $27m compensation package in 2019). It changed into additionally as a nod to the knowledge future of Intel, with whispers that Murthy changed into on the song to the CEO place and will help repair Intel’s technique node delays. So the incontrovertible fact that Renduchintala left with little fanfare, together with Bob’s feedback nowadays, may imply the cut up was lower than amicable when it got here to deciding Intel’s future, at least to the point on the way forward for the business and how each party wanted to be worried. It appears like Murthy wanted to go his way and his approach best, however Intel’s administration wanted extra voices within the room to debate these calls.

6. Silent Launch of Ice Lake Xeon

in all probability this remaining factor is a little bit of a big question mark. When a corporation begins talking about bulletins, launches, and availability, the exact place of the product can get somewhat murky, because the phrases of a bit used interchangeably. perpetually an reputable ‘launch’ is code for ‘we’ve begun selling it and generating income’, which is why here is all somewhat bizarre. Intel’s Ice Lake Xeon Scalable product has no longer had an authentic launch date and counsel experience, however Bob during this mp;A brought up that this 10nm silicon we’ve been watching for has already been launched. to add confusion to the mix, he also mentions that production is ‘ramping’, which continually capacity that Intel is enabling high volume creation for wider availability. although, the Intel press free up today only states that the product is ‘getting into construction’. it could’t be each – either it's in construction already and Intel is promoting it, or they’ve all started to make it. continuously with these Xeon products, the hyperscalers and large consumers act as Intel’s checking out floor, and so these purchasers will have been the usage of the engineering demo hardware for a few months already, on occasion in deployed servers. a few years in the past Intel made a hubbub about its first 10nm product Cannon Lake (which the business looks to want individuals to forget about) being shipped for income at the end of 2017, however it wasn’t unless Q3 2018 where Intel put it in their own NUCs for purchaser use. Between the launch, the ramp, the construction, and profits, Intel’s messaging here is uncertain. besides the fact that children, it's secure to expect that the huge shoppers already have some variety of it up and operating.

When Intel first introduced 10nm become delivery for salary. click via for video

Whichever approach you slice it this turned into a very enjoyable name about Intel and the enterprise’s future. This become done earlier than Intel briefed us on its CES bulletins, so there might possibly be some pass over as that happens. however I’m happy Intel became able to snare its CEO for some time with the technical press, despite the fact that the mp;A time ended up being quarter-hour for five/6 journalists. They savor these chances to have honest discussions about how the pinnacle of a corporation perceives the company they're in, as neatly as the imaginative and prescient of the enterprise as they flow ahead. It become a extremely interesting first speak with Bob, and with a bit of luck we’ll get the opportunity for many extra.

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