There are still hard days to endure!Intel CEO: “Lack of core” crisis may continue for two more years
News from the Financial Association (Shanghai, edited by Xiaoxiang), Intel Corp. CEO Pat Gelsinger (Pat Gelsinger) said on Thursday that global chip supply shortages may continue for another two years. Prior to this, the US semiconductor giant’s latest earnings performance was unsatisfactory.
Kissinger said, The tight supply that has affected certain areas of the global economy for several months will continue until more production capacity comes online to meet the chip demand for all kinds of commodities, from automobiles to electronic products.
“It will take a while before more production capacity is invested, just like building a new factory,” he said in an interview.
The new CEO of Intel, who took office only in February of this year, proposed an ambitious strategy this month: In addition to manufacturing semiconductors to meet its own needs, Intel will also become a major chip foundry. The plan includes spending commitments to spend $20 billion to build two new semiconductor factories in Arizona.
Kissinger said, “This year is a crucial year for Intel.”
Earlier this month, the White House met with executives from the chip and other industries to negotiate what actions should be taken to solve the core shortage problem and strengthen the US chip manufacturing industry. US President Biden had previously promised to solve the problem of chip shortages. In his huge infrastructure spending plan, 50 billion US dollars will be used in the semiconductor industry.
Intel may benefit from bipartisan support for American chip companies, for example, it is bidding for a Pentagon contract.
Of course, Intel’s desire to become a chip foundry is obviously not completely barrier-free. The company has tried to enter this market before, but it did not go smoothly. Intel’s main competitors in the chip industry, TSMC and Samsung, are preparing to expand their business through tens of billions of dollars in spending plans. TSMC last week increased its capital expenditure plan for this year to US$30 billion, while Samsung plans to invest US$116 billion by 2030 to diversify its chip production.
Intel’s traditional position is also currently facing challenges. Nvidia surpassed Intel last year to become the most valuable chip company in the United States. Nvidia also said this month that it will start selling CPUs for data centers. For a long time, this market has been dominated by Intel.
Intel’s financial report data released on Thursday showed that revenue in the first quarter fell 1% to US$19.7 billion, and net profit fell 41% to US$3.4 billion, dragged down by a legal settlement fee. Excluding the memory business and other items to be sold, revenue for the quarter was US$18.6 billion and net profit was US$5.7 billion. Intel shares fell 2.11% in after-hours trading.
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