SUPPORT OUR BLACK MARKET GPU MOVIE: https://store.gamersnexus.net/black-market-gpu-backers (launches August 15 to YouTube)In this video, we're recapping Inte...
I did not watch the full video, so this might be potentially mentioned somewhere, but: Trump’s tariffs are definitively not helping Intel at all.
Intel needs things produced in countries that were heavily tariffed, like Taiwan. It can’t produce them at home, those chips aren’t maize tortilla chips dammit. This additional cost needs to be paid by someone - whom? If Intel (price stays the same), now their margin of profit is smaller. If the customer (price is raised accordingly), now the demand drops, and Intel is selling less CPUs. Either way Intel loses money.
I’ll go further: AMD and nVidia are not safe. Once the AI bubble bursts, nVidia will crash really bad. And AMD is also paying the same tariffs as Intel, so while it might feast on Intel’s carcass - much like a vulture - eventually it’ll kick the bucket too.
They did mention the tariffs, but said it could either help Intel or not because if their competitors had to pay the tariff but Intel didn’t (Intel has fabs in US) then it gives them an edge. But TSMC has a fab in the US too, so it might not matter. In fact, it might hurt Intel.
Regardless Intel has other problems beyond tariffs, according to the video.
Edit: Originally poorly written. Now it’s slightly less poorly written.
The catch is that Intel will pay the tariffs either way.
Currently they can’t simply rely on the local industry for the semiconductors used in the hardware they sell, so they’re paying tariffs for them.
And, even if they eventually are able to rely solely on the local industry, the tariffs are inducing a supply shock - so even the price of locally produced alternatives will raise as a consequence.
Others are also paying the tariffs, but unlike Intel, they have a bit more wiggling room to deal with lower profits.
(I’m watching the video now, I swear! I know I shouldn’t comment on the topic before watching it, but…)
I did not watch the full video, so this might be potentially mentioned somewhere, but: Trump’s tariffs are definitively not helping Intel at all.
Intel needs things produced in countries that were heavily tariffed, like Taiwan. It can’t produce them at home, those chips aren’t maize tortilla chips dammit. This additional cost needs to be paid by someone - whom? If Intel (price stays the same), now their margin of profit is smaller. If the customer (price is raised accordingly), now the demand drops, and Intel is selling less CPUs. Either way Intel loses money.
I’ll go further: AMD and nVidia are not safe. Once the AI bubble bursts, nVidia will crash really bad. And AMD is also paying the same tariffs as Intel, so while it might feast on Intel’s carcass - much like a vulture - eventually it’ll kick the bucket too.
They did mention the tariffs, but said it could either help Intel or not because if their competitors had to pay the tariff but Intel didn’t (Intel has fabs in US) then it gives them an edge. But TSMC has a fab in the US too, so it might not matter. In fact, it might hurt Intel.
Regardless Intel has other problems beyond tariffs, according to the video.
Edit: Originally poorly written. Now it’s slightly less poorly written.
The catch is that Intel will pay the tariffs either way.
Currently they can’t simply rely on the local industry for the semiconductors used in the hardware they sell, so they’re paying tariffs for them.
And, even if they eventually are able to rely solely on the local industry, the tariffs are inducing a supply shock - so even the price of locally produced alternatives will raise as a consequence.
Others are also paying the tariffs, but unlike Intel, they have a bit more wiggling room to deal with lower profits.
(I’m watching the video now, I swear! I know I shouldn’t comment on the topic before watching it, but…)