The company's Q4 was reportedly strong but it is reported that Intel will be relying on outside chip manufacturers during the upcoming years. According to incoming Chief Executive at Intel, Pat Gelsinger, Intel will later on reclaim its high chipmaking crown. This is a strong statement even despite years of difficulties with manufacturing.
Intel new CEO
According to the story by CNet, after having reviewed improvements to Intel's own next-gen manufacturing processes as well as new chipmaking developments, he still expects Intel to be able to secure "unquestioned leadership" within the process of technology.
Gelsinger stated that he was very pleased to be able to see some of the other long-term innovation that is coming out as the company works to be able to close existing gaps with the external foundries and even leap ahead. During his 30-year tenure over at Intel, Gelsinger was said to be the architect of the 80486 key chip and then rose to the chief technology officer job even before spending the last of his eight years as the CEO of the software company known as VMware.
Intel competes by joining in
Reclaiming that particular leadership would then endow the Intel-based PCs with much better speed as well as battery life that is compared not just to the Windows machines of today but also to the new Apple MacBooks with the competitive M1 chips. Gelsinger is scheduled to replace CEO Bob Swan this coming February 15.
Gelsinger made an early appearance as Intel had reported its Q4 financial results. The company is also reportedly earning per share of its $1.52 well ahead of the expectations by analysts, on revenue sparking $20 billion for the given quarter, but it also stated it expects certain first-quarter revenue to then drop by 12% and also for the profits to drop 24% from year to year.
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Reliance on TSMC
Intel has also ceded leadership towards the Taiwan Semiconductor Manufacturing Co. responsible for manufacturing chips for its rivals which include Qualcomm, AMD, Apple, and even Nvidia and said that it will invest $28 billion in factory expansion this 2021. In quite a remarkable change towards its business and culture, Intel is said to become one of those particular customers for its new core products as soon as this current year. The analyst firm known as Trendforce expects that TSMC will be building some lower-end Intel PC processors within the earlier half of 2021 as well as midrange and high-end chips this coming 2022.
Intel said that it still wants to retain most of its own manufacturing still under its own roof. Gelsinger stated that he is not confident that a majority of the 2023 products will no longer be manufactured internally. He said this referring to the year that Intel's own delayed next-gen manufacturing process will be expected to go online. According to an article by ExtremeTech, the core i3 could be one of the products outsourced by the company.
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This article is owned by Tech Times
Written by Urian Buenconsejo
