\u201cWe will continue to navigate the short-term challenges while striving to meet our long-term commitments,\u201d Gelsinger said in a statement.<\/p>\n
Under Gelsinger\u2019s plan, Intel aims to accelerate the introduction of new manufacturing technology \u2014 ramping up at a rate that\u2019s never been attempted before in semiconductors.<\/p>\n
He\u2019s also planning to build factories in the US and Europe, shifting the concentration of production away from Asia.<\/p>\n
And Gelsinger looks to turn Intel into more of a contract manufacturer, handling outsourced work for other companies and challenging Taiwan Semiconductor Manufacturing Co.<\/p>\n
The hefty cost of making all those dreams come true was a concern for analysts and investors even before the latest downturn.<\/p>\n
Intel is expected to get government assistance to help finance factory expansion, and its cost-cutting plan will help.<\/p>\n
But regaining market share and returning its once-enviable profit margins to the mid-50% range is \u201cno small endeavor,\u201d Jason Pompeii, an analyst for Fitch Ratings, said in a note.<\/p>\n
On a brighter note for investors, the company remains committed to offering a competitive dividend, chief financial officer Dave Zinsner said Thursday.<\/p>\n
In the fourth quarter, Intel posted a net loss of $664 million, or 16 cents a share, down from a profit in the same period a year ago.<\/p>\n
Revenue dropped 32% to $14 billion, hitting its lowest level since 2016.<\/p>\n
Excluding certain items, earnings were 10 cents a share. Wall Street was looking for a profit of 19 cents on sales of $14.5 billion.<\/p>\n
The company expects \u201cvolatility across all markets\u201d this year. The PC market will be a particular weak spot, shrinking to the lower end of Intel\u2019s range of predictions \u2014 or about 270 million units.<\/p>\n
The server market will also contract in the first half of the year, Intel said. Like PC makers, those customers are cutting orders while they work through unused stockpiles.<\/p>\n
Intel expects the server market to resume growth in the second half of 2023.<\/p>\n
Client computing revenue shrank 36%, and operating income at the PC chip unit contracted 82%.<\/p>\n
The consumer and education markets were especially hard hit, Intel said.<\/p>\n
Data centre sales contracted by a third, and that businesses\u2019 operating profit was slashed by 84%.<\/p>\n
The grim results show Intel falling further behind rivals.<\/p>\n Its 2022 revenue total was lower than that of TSMC, a chipmaker that supplies many of the US company\u2019s competitors and enables some customers to design their own components.<\/p>\n Already, the once-dominant Intel had fallen behind Samsung Electronics Co. in sales.<\/p>\n The computer industry is undergoing a giant reset in the aftermath of a sales surge fueled by the work-from-home trend.<\/p>\n PC shipments sank 16% in 2022 and will decline again to as little as 260 million this year, according to an estimate by Northland Securities analyst Gus Richard.<\/p>\n That\u2019s down from nearly 350 million in 2021.<\/p>\n Intel still dominates the market for processors used in servers, with a share of more than 70%. But its hold on that lucrative market has slipped.<\/p>\n The company was slow to introduce new products in recent years, and rivals such as AMD made gains.<\/p>\n Some customers also are developing in-house chips to replace Intel processors.<\/p>\n The company predicted a surprise loss in the current period and a sales range that missed analysts\u2019 estimates by billions of dollars.<\/p>\n","protected":false},"author":341034,"featured_media":431060,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[73014,59759,131,71088],"class_list":["post-477929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-chip-manufacturers","tag-chipmakers","tag-intel","tag-pat-gelsinger"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/477929"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=477929"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/477929\/revisions"}],"predecessor-version":[{"id":477937,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/477929\/revisions\/477937"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/431060"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=477929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=477929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=477929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/01\/Intel-vs-TSMC_Annual-revenue_Bloomberg.jpg\")
<\/a><\/p>\nNow read: Price of a 1TB portable drive from 2012 to 2023<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"