The head of Intel said the chip industry needs more integration
Intel CEO says more integration is needed in the future Chip manufacturing industryA few days ago, it was reported that the American chip manufacturer was negotiating to acquire GlobalFoundries for $30 billion.
“We just think that smaller players will not be able to keep up,” Pat Gelsinger said. In a conference call with analysts to discuss Intel’s latest earnings, he added that “foundries without leading capabilities”—the term usually used to refer to companies that don’t manufacture computer chips with the smallest feature size—will have difficulty competing. .
GlobalFoundries, owned by Mubadala, the sovereign wealth fund of Abu Dhabi, gave up leading manufacturing three years ago. At that time it cancelled its plan to manufacture 7-nanometer chips-Intel has been working hard to adopt the same process technology.
Gelsinger’s comments are by far the clearest indication that the US chipmaker can use the deal to improve its manufacturing base. Intel said it is discussing its new foundry business announced in March with 100 potential customers, justifying the rapid expansion of its production facilities.
“We will not say that mergers and acquisitions are important, but we will not rule it out,” Intel CEO told Wall Street. Mubadala did not comment on the negotiations with Intel reported by the Wall Street Journal, while GlobalFoundries said it was not in discussion.
At the same time, Intel said it expects Supply chain tightening Stirring the electronic world to its peak this summer, and predicting that it may take another two years to completely relieve the pressure on the entire industry and restore customer supply to normal.
The company said that supply pressure-especially the lack of silicon used to make Intel chips-will hinder the production of personal computer semiconductors this quarter, thereby affecting sales. In an attempt to finally increase the production of 7nm chips, Intel stated that it will face higher costs later this year. This caution and higher costs have caused its stock to fall by 2% in after-hours trading.
Some industry leaders predict that chip supply will rebound faster, believing that the supply shortage is artificially exacerbated by customers over-ordering in an attempt to make up for the shortage. But Gelsinger has warned for months that these problems will hinder electronics manufacturers for longer than many people expected, and reiterated on Thursday that “it will take the industry a year or two to catch up with demand.”
The warning came when Intel announced surprising second-quarter earnings, thanks to the continued rebound in PC sales since the Covid-19 lock-in. The $19.6 billion in revenue was nearly $2 billion higher than Wall Street’s expectations-although sales were still slightly lower than a year ago, when the pandemic caused a surge in digital demand, leading to a surge in chip sales to cloud companies.
Intel has raised its previous full-year revenue forecast by US$1 billion to US$73.5 billion-despite its outstanding performance of US$2 billion in the previous quarter, this still means that there is still a US$1 billion gap for the rest of the year.
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