Intel loses a $1 billion/year customer

Intel has a billion dollar-ish skeleton in their closet that they don’t want to talk about. SemiAccurate has been researching this for months and when a Senior Vice President shows up at a competitor with resume in hand, you know you are on the right track.

As SemiAccurate said when we outed how Intel Custom Foundry Group’s failures effectively killed a $20 billion market cap partner, this one has some pretty scary potential fallout too. It is unlikely to be as disastrous as the outcome of the new ~$1 billion per year flow of contra-revenue funding the company isn’t publicly admitting to, but the numbers are in the same ballpark.

We have been researching this non-disclosed issue for months now, and while we lack some details, we have enough sources with direct knowledge of the situation to come to some conclusions. One thing that is unmistakable is that the division has lost 1/4 to 1/3 of their business, some hint at more, which numbers about a billion. As we said in the introduction, when an SVP is seen at a competitor with resume in hand, something is up.

Note: The following is analysis for professional level subscribers only.

Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.