Naked Capitalism has the post How Intel Financialized and Lost Leadership in Semiconductor Fabrication.
Yves here. Get a cup of coffee. This is an extremely well documented account of how Intel chose pumping up its stock over defending a core business.
A side-note of little interest to anyone but me, Morris Change was Vice President at the division of Texas Instruments where I worked from 1969 to around 1973.
Responding to the opportunity to manufacture chips for fabless firms, in 1987 Morris Chang, a Taiwanese native with electrical engineering degrees from MIT and Stanford and 25 years of work experience at TI, launched Taiwan Semiconductor Manufacturing Corporation (TSMC) as the world’s first “pure play” foundry.
Since I retired in around 2007, I had no idea how far Intel had fallen behind.
Use this link to search of other mentions of finacialization on my blog.