[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"scribble-the-foundry-furnace-13f1883f":3},{"id":4,"title":5,"user_id":6,"is_anonymous":7,"tags":8,"created_at":14,"updated_at":14,"storage_path":15,"is_public":16,"linked_scribbles":17,"previous_scribble":21,"next_scribble":21,"is_draft":7,"related_scribbles":22,"slug":23,"author_name":24,"author_username":24,"body":25,"linked_articles":26,"related_articles":36,"reverse_relation_map":77},"13f1883f-0600-4de0-bce2-be08d6263e74","The Foundry Furnace","b010d45f-3f37-4ae7-96da-3e42cecaf0ef",false,[9,10,11,12,13],"strategy","manufacturing","cashflow","intel","finance","2026-01-08T03:44:35.289375+00:00","b010d45f-3f37-4ae7-96da-3e42cecaf0ef/116b116b-e7b3-43c1-93c0-e0b30f03eed5.md",true,[18,19,20],"181b7206-4b4f-40dd-8094-b49fc942b00f","9ee68c8f-a89e-447f-8612-204d19636032","070e0c7d-d9dc-443f-8470-58b057b63331",null,[],"the-foundry-furnace-13f1883f","BusInsights","## The $1.55 Problem\n\nEveryone talks about \"IDM 2.0\" and the foundry revolution. I decided to look at the unit economics of this revolution.\n\nIn Q3 2025, Intel Foundry generated $4.2 billion in revenue. Sounds decent, right? But to generate that revenue, they posted an operating loss of $2.3 billion.\n\nLet’s do the math on the cost of goods.\n\n- **Revenue:** $4.2B\n\n- **Loss:** -$2.3B\n\n- **Total Cost:** $6.5B\n\nThis means for every **$1.00** of manufacturing service Intel sells, it costs them **$1.55** to deliver it.\n\n## The Capital Sinkhole\n\nThey are spending $18 billion in CapEx this year to build factories that currently lose 55 cents on every dollar of revenue. They call it \"Smart Capital.\" I find the definition of \"smart\" to be quite fluid in the corporate world.\n\nUsually, you invest to capture a margin. Here, they are investing record amounts to capture a loss. Is this a business strategy, or just an expensive way to heat the atmosphere?",[27,30,33],{"id":18,"title":28,"previous_scribble":21,"next_scribble":21,"slug":29},"Intel: The $4 Billion Mirage","intel-the-4-billion-mirage-181b7206",{"id":19,"title":31,"previous_scribble":21,"next_scribble":21,"slug":32},"The Invisible Boom","the-invisible-boom-9ee68c8f",{"id":20,"title":34,"previous_scribble":21,"next_scribble":21,"slug":35},"The Debt masquerading as Equity","the-debt-masquerading-as-equity-070e0c7d",[37,41,45,49,53,57,61,65,69,73],{"id":38,"title":39,"slug":40},"619af8aa-c46e-478d-bfce-3a66b2743794","The 'Massive' Pause","the-massive-pause-619af8aa",{"id":42,"title":43,"slug":44},"8ca1bf3c-2c85-45a9-b6ab-0a2ad72e9682","The $50,000 Moonshot","the-50-000-moonshot-8ca1bf3c",{"id":46,"title":47,"slug":48},"37392b05-8672-47dc-9bca-74a1112b2475","The Crisis of Organic Growth","the-crisis-of-organic-growth-37392b05",{"id":50,"title":51,"slug":52},"a0196843-b10b-4df9-8f47-fb72e0652901","A Comprehensive Analysis of Big Tech Depreciation: Alphabet Inc","a-comprehensive-analysis-of-big-tech-depreciation-alphabet-inc-a0196843",{"id":54,"title":55,"slug":56},"dc7937db-b59e-43bc-b8d4-9060d1b21360","A Comprehensive Analysis of Big Tech Depreciation: Meta Platforms, Inc","a-comprehensive-analysis-of-big-tech-depreciation-meta-platforms-inc-dc7937db",{"id":58,"title":59,"slug":60},"7e29ba1a-e289-4b1b-ab03-293b8932f167","A Comprehensive Analysis of Big Tech Depreciation: Microsoft Corporation","a-comprehensive-analysis-of-big-tech-depreciation-microsoft-corporation-7e29ba1a",{"id":62,"title":63,"slug":64},"b5c59304-4705-4886-a4cd-08a30ecde299","The Hub is Now the Target","the-hub-is-now-the-target-b5c59304",{"id":66,"title":67,"slug":68},"7ed59681-19e9-47f4-8060-9e582da41b50","Companies Deployed AI Without Checking If It Works","companies-deployed-ai-without-checking-if-it-works-7ed59681",{"id":70,"title":71,"slug":72},"b86d6fb7-e5ea-4c25-a569-596c2f0fae29","Measure Uncertainty","measure-uncertainty-b86d6fb7",{"id":74,"title":75,"slug":76},"85d661b8-f426-4f90-9e2b-6cf727037cc1","The Mechanics of a Siege","the-mechanics-of-a-siege-85d661b8",{}]