{"id":109107,"date":"2021-01-22T03:28:46","date_gmt":"2021-01-22T03:28:46","guid":{"rendered":"https:\/\/precoinnews.com\/?p=109107"},"modified":"2021-01-22T03:28:46","modified_gmt":"2021-01-22T03:28:46","slug":"intel-avoids-outsourcing-embrace-investigates-hack-of-results","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/intel-avoids-outsourcing-embrace-investigates-hack-of-results\/","title":{"rendered":"Intel avoids outsourcing embrace, investigates hack of results"},"content":{"rendered":"

(Reuters) – The incoming chief executive of Intel Corp said on Thursday that most of the company\u2019s 2023 products will be made in Intel factories but he sketched a dual-track future in which it will lean more heavily on outside factories.<\/p>

FILE PHOTO: An Intel Tiger Lake chip is displayed at an Intel news conference during the 2020 CES in Las Vegas, Nevada, U.S. January 6, 2020. REUTERS\/Steve Marcus\/File Photo<\/figcaption>

The lack of a strong embrace of outsourcing from new CEO Pat Gelsinger drove shares down 4.7% after hours. Shares rose 6.5% during regular trade, when the results were released ahead of the close. The company said it was investigating \u201cnon-authorized\u201d access to some of the results, with the Financial Times quoting its chief financial officer as saying the microchip maker had been hacked.<\/p>\n

Intel also forecast first-quarter revenue and profit above Wall Street expectations, continuing to benefit from pandemic demand for laptops and PCs that have powered the shift to working and playing from home.<\/p>\n

Gelsinger said he was \u201cconfident that the majority of our 2023 products will be manufactured internally\u201d though he also said the use of outside chip factories is likely to increase \u201cfor certain technologies and products.\u201d<\/p>\n

Intel has been considering since last July whether to drop its decades-old strategy of both designing and making chips by turning for help on its central processing units, or CPUS, to \u201cfoundry\u201d manufacturers. Those partners could be Taiwan Semiconductor Manufacturing Co and Samsung Electronics. Intel\u2019s manufacturing technology, called a 7-nanometer process, is expected in 2023.<\/p>\n

\u201cWe didn\u2019t get our answer on which foundries and when,\u201d said Patrick Moorhead of Moor Insights & Strategy. \u201cThey pushed the can down the road.\u201d<\/p>\n

Kinngai Chan, analyst at Summit Insights Group, said Intel is not likely to outsource its flagship chips.<\/p>\n

\u201cIntel\u2019s 14-nanometer chip transistor speed has always been faster than what any foundry can offer even at 7-nanometer,\u201d Chan said. \u201cWe believe it will increase its use of external foundries over-time – just not for its large-core CPUs.\u201d<\/p>\n

Keeping manufacturing in-house means higher investments. Bernstein analyst Stacy Rasgon questioned whether Gelsinger, currently the chief executive of VMware Inc who previously spent 30 years at Intel and announced his intention to return just last week, has had sufficient time to dig into the issue.<\/p>\n

\u201cIt was pretty obvious they were trying to borrow his credibility\u201d when Gelsinger endorsed Intel\u2019s delayed 7-nanometer technology, Rasgon said.<\/p>\n

Intel\u2019s decision coincides with U.S. lawmakers having passed bipartisan legislation to fund U.S. chip manufacturing. But the new law has yet to specify funding levels or recipients, and Forrester Research analyst Glenn O\u2019Donnell said Intel might take the opportunity to solicit U.S. government support for domestic manufacturing.<\/p>\n

Boosted by a new high-end PC processor, Intel regained some momentum in the PC market, with volumes of PC chips rising 33%, faster than the 26% rise for the overall PC market, according to data from IDC.<\/p>\n

Data center group sales, which powered Intel\u2019s growth over the past several years, were $6.1 billion compared with analyst estimates of $5.48 billion, according to FactSet data.<\/p>\n

But sales to cloud computing customers, some of the largest and fastest-growing purchasers of data center chips, were down 15% in the fourth quarter. Data center chip operating margins were 34% in the quarter, down from 48% a year earlier.<\/p>\n

\u201cWe think (data center) operating margins are going to improve as we get toward the second half of the year, when we expect to see a rebound in cloud\u201d chip sales, Intel Chief Financial Officer George Davis said.<\/p>\n

The company also raised its dividend by 5%.<\/p>\n

The chipmaker said it expects fiscal first-quarter adjusted sales of $17.5 billion and adjusted earnings per share of $1.10, both ahead of analyst consensus, according to IBES data from Refinitiv.<\/p>\n

Fourth-quarter revenue of $20 billion and adjusted earnings per share of $1.52 also beat Wall Street targets.<\/p>\n

(This story refiles to correct spelling of nanometer in paragraph 10)<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – The incoming chief executive of<\/p>\n","protected":false},"author":3,"featured_media":109106,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nIntel avoids outsourcing embrace, investigates hack of results - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/intel-avoids-outsourcing-embrace-investigates-hack-of-results\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Intel avoids outsourcing embrace, investigates hack of results - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"(Reuters) – The incoming chief executive of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/intel-avoids-outsourcing-embrace-investigates-hack-of-results\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-22T03:28:46+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/01\/cnewsfotor25-14.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/intel-avoids-outsourcing-embrace-investigates-hack-of-results\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/intel-avoids-outsourcing-embrace-investigates-hack-of-results\/\",\"name\":\"Intel avoids outsourcing embrace, investigates hack of results - 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