The model that dominated technology for 50 years has died

The numbers do not usually lie, especially in the long term. And Intel’s figures during the last decade speak of a historical replication. Of A giant come less in an alarming way.

In figures. In 2015, Intel’s stock capitalization multiplied by Nvidia. Almost ten years later, that of Nvidia, the first company in history to exceed four billion dollars, multiplies by 41! to Intel, which has been jibarized at a time when it has been exceeded by many lower companies.

A brutal change that symbolizes the change of technological era:

• Nvidia’s boom first for its GPUS sales for cryptocurrency mining and then for the training of AI models.
• Intel’s decline due to its inconsequence in the mobile era, the rival boom in CPUS, or the passage of Microsoft or Apple to ARM.

And not only Nvidia has advanced. Also Texas Instruments, Qualcomm, AMD … Gelsinger’s legacy.

The contrast. In 2006, Intel refused to make chips for the iPhone Because I considered that Apple was too small. That same year, Intel tried to buy Nvidia For 20,000 million dollars, but Jensen Huang refused.

Today these decisions have completely checked Intel’s route, which at the beginning of the century was always in the top 10 of world companies by stock market and today is close to leaving the Top 200.

The threat. The Hard recent admission of CEO Intel, Lip-Bu Tan, that Intel is no longer among the top 10 of semiconductors, says many more things.

The company that fed the PC revolution, which created the Wintel ecosystem that dominated for decades and was synonymous with American innovation, now is worth less than Spotify, Coinbase or Iberdrola.

Yes, but. The 5,500 new layoffs announced by Intel They are more than an adjustment or cut.

• In California, almost 2,000 jobs will disappear.
• In Oregon, almost 3,000.
• In total, 20% of the workforce will be fired.

The workers who developed the technology that moved the world are now expendable.

The turn. Intel has outsourced TSMC 30% of its production by 2025. Paradoxical in a company that presumed its vertical integration, which controlled from design to manufacturing. And that now depends on his Taiwanese rival to survive.

A symbolic surrender: the king of manufacturing asking for help to who removed the throne.

Between the lines. The strategy of pivoting to the edge announced by so sounds like last minute refuge. “It’s too late for us“The CEO admitted. It is not only to recognize the loss against Nvidia, it is to recognize the loss in the most important race of what we have been from the century: that of AI.

And another paradox: China represents 29% of Intel’s incomemore than any other market. The most iconic American technology company depends more on China than its own market.

• Trump is focused on technological independence in this legislature …
• … but Intel needs China to stay alive.

Turning point. He 18A process That must save Intel by 2025 generates certain doubts. And if he fails, Intel runs out of his last asset to compete with TSMC. If it triumphs, it will be a partial victory, since it will be arriving five years late to the battle.

This Intel fall also symbolizes something else: the end of the vertical integration model in chips represented Intel against Nvidia’s specialization model.

• The first designs and manufactures.
• The second designs but leaves manufacturing in the hands of TSMC.

And hence the problem for the West: advanced manufacturing is concentrated in Asia and the value is redistributed.

In Xataka | In its darkest time Intel is receiving a crucial economic support from its best client: China

Outstanding image | Intel