Gadgetory

hey what's up guys glad to see you back here once again so check this out for decades Intel has held complete dominance in the semiconductor market almost since their onset they've been the leader in fact last year they sold 265 billion dollars worth of their chips that's quite a big amount of chips but TSMC which the Taiwan Semiconductor Manufacturing company sold 194 billion and is slowly creeping up and at this point has actually gone ahead of Intel as a semiconductor company now when I say it's semiconductor company this is the person that's actually manufacturing the chips that you see and there's a reason why is MC is pulling ahead now Intel has tried to do what's called contract chip building which means they get other people to invest their money and have Intel make their chips well Intel pretty much fell almost flat on their face with this particular thing and that's one of the reasons that they're losing this battle because let's just face it AMD Apple are all making their chips through TSMC and the very fact that Intel is having problems getting their 10 nanometer technology to the market and it looks like TSM C is gonna have seven nanometer processors later on this year puts Intel at a severe disadvantage it really really does now these two companies do have a completely different business model and the models are this Intel are Indies all of their chips they do all of the research and development and they manufacture their own chips however they're not manufacturing chips for a lot of other companies and that's where tsmc really comes in and since they're already doing contract based building these guys are pulling ahead ever so slowly now on the desktop market Intel still doing pretty good with their chip sales but was n2 right around the corner we're gonna probably see that gap closed if not totally surpassed and at that point that'll put Intel at an even bigger disadvantage and the very fact that they're having with their 10 nanometer process is gonna affect things across the board which we'll talk to another video it's gonna affect things even on their discrete graphics card market so all in all Intel trying to shoot for this 10 nanometer process is actually holding them back quite a bit and even their stock people are kind of very upset about this claiming hey where is this new technology that's promised we need to breathe new life into Intel now that being said I'm not saying that AMD is passing up Intel now in certain areas they're doing really well on the server market the epic chipset there's like 40 different servers out there that's starting to really get into the market and saturate it which means Intel's losing sale in that department and honestly in the server division workstation division that was an area that Intel was never even really had any competition in whatsoever but now you see them having severe competition and if tsmc can come out and they can have themselves a seven nanometer processor before Intel that's gonna make a big dent in the market I mean it will II will it will change the market altogether and in fact if you go to sites like The Motley Fool who talk about stock options and what you should buy and stuff like that you'll see that the Motley Fool is really no longer offering Intel as one of their top ten stocks which is kind of weird because in the past Intel's always been a stock that people like hey buy into it and you could be SuperDuper rich like if you would have invested even five thousand dollars in Amazon when it first came out that'd be worth like five million dollars today so even though we're probably not going to see like any you know double or triple digit jumps in Intel stock it's still been good stock to buy but with tsmc totally started to dominate the market and making more chips or people this is definitely going to change as we roll into 2019 and this seven nanometer process it may not seem like that big video to people but it really is because the smaller the die the more manufacturing you can make the more stuff you can have it takes up less space in the die so you can make more chips more chips more chips which means that they can actually have the ability to make more chips than Intel can even shout at that point that will really really cause a severe gap in the market now contract stuff would really help Intel quite a bit if they could jump on that market but for some reason right now they seem to be really failing in that market it just seems to be something that I guess you know since traditionally they've never really done that you know it's like a company that makes chocolate ice cream all of a sudden make him Nell and people just like what Fadel ice cream from chocolate company that just doesn't make any sense and it's kind of the same thing that's happening to Intel for years they've never ever worked with any other company they've never opened up their fabs to anybody else so when they're hoping their doors wide up but now and saying hey come on over I think people might even be a little bit leery of that going well what the heck's going on here why is until all of a sudden changing their game plans well they're changing their game plans because the entire market is changing and shifting and honestly the entire market is changing and shifting to one that will actually put Intel in a possible secondary position all the way across the board this could seriously happen if TSMC can work with these other companies and produce better chips and better chip yields then they can definitely take over the market now one strategy that Intel has taken in the past and I'm sure we will probably see this happening I mean sure this probably make a lot of people happy is will see Intel start to cut the prices on their CPUs to be competitive if Xen 2 comes out and it's so much better than Intel that it makes it into have to go oh my god they're gonna definitely have to lower their prices to compete in that market and if they could somehow change things and get some of these contracts with these other companies that would definitely change things for the better TSMC is growing rapidly I mean they really are growing rapidly and their stock is something that's being recommended so when you look at it from just a person who's like investing in stuff like that you'd have to say wow do I really want to invest my money in Intel or do I want to invest my money in TSMC and I think most people these days are going to want to put their money into tsmc now this will totally change the market in another way as well if people stop buying Intel stock altogether that will affect Intel's overall revenue in a big way less people investing in stock less people buying into the company which means the company will start to shrink instead of grow and at that point that will really change the marketing I mean let's just face it TSMC is making chips for other people just the very fact that they're making chips for all the Apple stuff that's a big deal iPhones sell like hotcakes and since they're making the CPUs that are in all of these iPhones that alone gives them a lead and plus working with AMD as well and you know there's probably lots of other companies to it they work with and do this that is giving them an edge which is not Intel off their throne so really for the first time in history Intel is no longer the number one semiconductor manufacturing company they're just not even though last year they did make a few more billion dollars than TSM see this year they say that the growth will be much larger I guess last year until I had a growth about 6% in the market but TSMC says that this year they're gonna show at least a 10% market growth and if you look at the numbers that 10% market growth will be quite a big leap I know you know 10 to 6 doesn't sound like that much when you're talking about billions of dollars and billions of things it's actually quite a big number and this year may be the first year that we see Intel get totally blown away on the market with TSMC actually growing bigger faster and making more money all the way around the board which will just be crazy now like I said before I know some people you know think that this translates into like AMD you know making better CPUs than Intel and stuff like that or taking more market and that's not really the case AMD right now and these according to the latest numbers has about 12 percent market share in the CPU industry with Intel taking all the rest for themselves so that alone keeps Intel you know doing better as far as market segments go so as far as just selling to mean you the retail market and all that stuff Intel still can't be touched at this time point but the decisions that they make in the next few months will definitely determine what's going to happen to Intel down the line will Intel make the proper changes to get back their glory and be in the limelight again and be the number one semiconductor company or will TSM see totally dominate this year working with more contracts more companies and getting that 17 excuse me and getting that seven nanometer process to the market before Intel if these things happen until we'll seriously be in trouble and 2019 will be a completely different year another thing is is that Intel is trying to enter into the graphics market the discrete graphics process of wove another video on that and that alone is going to be delayed as well but right now it does seem though that Intel is no longer the giant they once were and if they make bad decisions for the rest of this year and the decisions don't match up with actually the business world we could see Intel topple off that and see tsmc become the strongest and the most viable semiconductor manufacturing company in the world and that will be a big change people don't really realize that at our level but there are people out there who have stocks in this company where they have millions and billions of dollars invested into the stock and if Intel topples all those people with that stock will lose a lot a lot of money so you'll probably see as we've actually started to see people dumping off their Intel stock and buying in to TSMC and this is going to be a very big change in the market Intel was number one like I said for decades but check it out the times they are a-changin we'll see you guys back around Tekken tomorrow for more tech