A sharp decline in demand for PCs is prompting Intel to reevaluate its expenditures, with reduced factory hours and staff reductions among the options under consideration. Intel CEO Pat Gelsinger also says the company is considering divestitures as it seeks to cope with a 20 percent drop in Q3 revenue, to $15.3 billion, and full-year outlook downsized by $1 billion. Intel has been undergoing a reinvention of sorts as it steps into the role of foundry. Increased capex for new plant construction means surgical precision is needed to achieve a goal of $3 billion in 2023 cost cuts. Continue reading With Revenue Down 20 Percent, Intel Plans to Reduce Costs

Intel unveiled plans to invest an initial $19 billion to construct new leading-edge semiconductor fab mega-sites in Magdeburg, Germany; an R&D and design hub in France; and R&D, manufacturing and foundry facilities in Ireland, Italy, Poland and Spain. The plan could see as much as $88 billion invested “along the entire semiconductor value chain” in the EU over the decade, according to the Santa Clara-based chipmaker, which says it wants to introduce a next-generation chip ecosystem while offsetting reliance on Asia for a more “resilient supply chain.” Continue reading Intel Powers Up EU Chip Plans with $19 Billion German Plant

Intel announced it will purchase Israeli chipmaker Tower Semiconductor in a deal valued at $5.4 billion. Tower — which specializes in analog semiconductor solutions for high-growth markets including mobile, automotive, medical devices and power management — will make Intel instantly more competitive in sectors dominated by Taiwan’s TSMC. Intel CEO Pat Gelsinger cited “Tower’s specialty technology portfolio, geographic reach [and] deep customer relationships” among the assets that will help scale Intel to “a globally diverse end-to-end foundry” to help meet growing chip demands across the nearly $100 billion addressable foundry market. Continue reading Intel to Acquire Israel’s Tower Semiconductor for $5.4 Billion

The European Commission is ramping up to boost microchip production, unveiling the European Chips Act, which proposes to unleash roughly $49 billion in public and private funds for chipmaking. The plan, announced this week, is part of the EU’s effort to regain a degree of commercial independence, and underscores the importance of computer chips to national security, something the Biden administration has also emphasized. The EC proposal reserves for the Commission the right to prioritize specific products under certain circumstances, something the chip foundries of various nations have also been doing. Continue reading European Chips Act Aims to Boost Production, EU Tech Role

California-based Intel, the world’s largest semiconductor manufacturer, reports Q4 2021 set a record and capped the company’s best year ever despite the dire worldwide shortage of processing chips. Q4 revenue was up 3 percent, to $20.5 billion, while the year totaled $79 billion, a 1 percent gain. However, Q4 net income declined 21 percent year-over-year, to $4.6 billion, and fell 5 percent (to $19.9 billion) for the 12-month period. Intel CEO Pat Gelsinger called it “a great finish to a great year,” besting top-line quarterly guidance by over $1 billion to deliver “the best quarterly and full-year revenue in the company’s history.” Continue reading Intel Has Record Quarter and Year Despite Supply Shortages

Supply chain woes have underscored a global shortage in high-end computer chips. Taiwan Semiconductor Manufacturing Company’s claim of 53 percent of the world market is practically a political crisis, as China eyes Taiwan. Now, California-based Intel plans to reclaim its once preeminent title in chip manufacturing and design. Under new CEO Pat Gelsinger, the company has doubled its number of chips in development, abandoning the “fabless” future some envisioned for it, selling off factories and joining the likes of Nvidia, AMD and Qualcomm, which build on wafers supplied by foundries. Continue reading Intel Ramps Up Efforts to Reclaim Top Position in Chip Market