Intel shares tumbled after the incoming CEO pledged to regain the company’s long-lost lead in chip manufacturing, countering growing calls from some large investors to shed that part of its business.
“I am confident that the majority of our 2023 products will be manufactured internally,” Pat Gelsinger said on a conference call to discuss financial results. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.”
He plans to provide more details after officially taking over the CEO role Feb. 15, however Gelsinger was clear that Intel is sticking with its once-mighty manufacturing operation.
“We’re not just interested in closing gaps,” he told analysts on a conference call Thursday. “We’re interested in resuming that position as the unquestioned leader in process technology.”
Keeping production in-house may be bad for Intel because its manufacturing technology has fallen behind Taiwan Semiconductor Manufacturing Co., which makes chips for many of Intel’s rivals… “Where investors are going to be disappointed is that some were expecting some sort of larger announcement of a strategic partnership with TSMC,” said Edward Jones & Co. analyst Logan Purk.
MacDailyNews Take: Gelsinger has the unenviable (besides the huge paycheck and golden parachute) task of trying to rally the tired troops of a stagnant maker of hot, slow, insecure x86 chips after being thoroughly embarrassed by Apple’s first-generation M1 chips.
He’s either faking it with some corporate rah-rah talk or he’s got a screw loose.
Wait until he sees Apple’s M2, M3, etc. He’ll be running to TSMC begging for help.
Patty should transition beleaguered Intel into a maker of “lifestyle” hotplates. Intel would be really good at that.
(Our apologies to computer fan makers worldwide. We know you love Intel utterly and completely.)
See also: M1 benchmarks prove Apple Silicon outclasses nearly all Intel Macs — January 13, 2021