SeaPRwire

Intel raises full-year sales forecast, but supply constraint woes send shares down

elean
3 minutes

SAN FRANCISCO (REUTERS) - Intel raised its annual revenue forecast above Wall Street expectations on Thursday (July 22), but chief executive Pat Gelsinger said the outlook for the chipmaker was still "supply constrained" and that it could take the industry two more years to catch up with rising chip demand. Paired with a third-quarter sales forecast that just cleared analyst estimates, the results sent shares down 2.8 per cent in after-hours trading after the results. Intel, one of the few remaining companies in the processor chip industry that both designs and manufactures its own chips, has been able to weather the supply chain woes better than some rivals and is also working to build a business of making chips for others, called a "foundry" business. Mr Gelsinger declined to comment on a recent report that Intel is looking to buy GlobalFoundries for US$30 billion (S$41 billion) to bolster its foundry efforts, but told Reuters that he expects industry consolidation to continue and that "(mergers and acquisitions) will remain a part of our strategy" for building the company's foundry business. Intel said it now expects annual adjusted revenue of US$73.5 billion, compared with its ...

SeaPRwire

Intel in talks to buy chip giant GlobalFoundries for about $40.6 billion: WSJ

elean
2 minutes

BENGALURU (REUTERS) - Intel Corp is in talks to buy chip giant GlobalFoundries, a big investor in Singapore manufacturing, for about US$30 billion (S$40.6 billion), the Wall Street Journal reported on Thursday (July 15). Any deal talks do not appear to include GlobalFoundries directly, as a spokesman for the company told WSJ it was not in discussions with Intel, according to the report, which cited sources familiar with the matter. The talks come as a semiconductor shortage is hobbling industries around the globe. A deal could help Intel ramp up production of chips at a time demand is at its peak and the company is looking to start producing chips for carmakers that have struggled to keep operations running due to severe shortages. Intel, one of the last companies in the semiconductor industry that both designs and manufactures its own chips, said earlier this year it would expand its advanced chip manufacturing capacity by spending as much as US$20 billion to invest in factories in the United States. Intel said it intended to open its factories to outside chip designers, as it competes with Taiwan’s Semiconductor Manufacturing Co and Korea’s Samsung Electronics. GlobalFoundries, w...

SeaPRwire

Intel to spend US$20b on US chip plants as CEO challenges Asia dominance

elean
5 minutes

SAN FRANCISCO (REUTERS) - Intel will greatly expand its advanced chip manufacturing capacity as the new chief executive announced plans to spend as much as US$20 billion (S$26.9 billion) to build two factories in Arizona and open its factories to outside customers. The move by CEO Pat Gelsinger on Tuesday (March 23) aims to restore Intel's reputation after manufacturing stumbles sent shares plunging last year. The strategy will directly challenge the two other companies in the world that can make the most advanced chips, Taiwan's Semiconductor Manufacturing Co (TSMC) and Korea's Samsung Electronics. And it will aim to tilt a technological balance of power back to the United States and Europe as government leaders on both continents have become concerned about the risks of a concentration of chipmaking in Taiwan given tensions with China. Intel shares rose 7.5 per cent after the company disclosed its new strategy and full-year financial guidance for 2021. Some investors such as Third Point LLC had previously urged Intel to consider spinning off its costly chip manufacturing operations. Intel said it expects US$72 billion in revenue and adjusted earnings per share of US$4.55, compare...