[[2025-08-13|25-08-13]] as i cooked exam question on newsvendor and rq policy on chips with [[asml]] using [cld](https://claude.ai/chat/6a8c9a67-221c-4ca0-9e1e-3550e163776a) ### From Intel's Story: 1. **The Mobile Chip Decision (2006)**: Intel CEO rejected Steve Jobs' request to make iPhone chips because the volume seemed too small and margins too low—a "rational" decision that became a $500B mistake. This perfectly illustrates newsvendor thinking: one-time decision with massive opportunity cost. 2. **Technology Lead Evaporation**: Intel's 2-year manufacturing advantage disappeared when they prioritized short-term profits over R&D investment. They're now 2-3 generations behind TSMC, showing how lead time advantages compound. 2025-06-06 using [compare(research progress alg) cld](https://claude.ai/chat/b3f89d50-ea4b-448f-b873-5f40493696dd) page 4 of the document, Fine describes Intel's approach: "Intel crafted a brilliant 3-DCE strategy that used product/process modularity to reduce significantly the complexity... Throughout the 1990s, the company launched each new microprocessor generation on the 'platform' of an old (line-width) process. Alternately, each new process generation was launched with an 'old' product technology." So Intel's specific strategy was: - New product (i486) on proven process (one-micron from i386) - New process (.8-micron) on proven product (i486) - Continue alternating: new product (Pentium) on proven process (.8-micron) ----- Intel’s History of Misjudgment Turns Existential Crisis https://www.kaohooninternational.com/markets/545074