Intel CEO Sees 'Green Shoots' Emerging

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www.eetimes.com, Feb. 23, 2023 – 

Intel CEO Pat Gelsinger sees the first signs of a turnaround in the company's business during his nearly two years at the helm of the top U.S. chipmaker, he said yesterday. Analysts contacted by EE Times were less optimistic.

Gelsinger made the comment during an unscheduled conference call with analysts yesterday to explain why the company cut its annual dividend to 50 cents per share.

Intel has maintained capital expenditures necessary to achieve its "five nodes in four years" while making capacity cutbacks in 2022 and this year, according to Gelsinger, who said he is aiming for capex intensity in the low 30% range of revenue this year versus an original target of 35%. The company expects to spend about $20 billion this year to expand production capacity.

"We see this year as the turning point to reestablishing our execution engine and regaining our performance and cost leadership, as evidenced by the many green shoots we are beginning to see across our business," Gelsinger said. "We are at, or ahead of, schedule on five nodes in four years."

The company expects new foundry customers for its upcoming process nodes during the next few years. Intel is both a competitor and a customer of top foundry Taiwan Semiconductor Manufacturing Co. (TSMC), which took the technology leadership crown from Intel several years ago.

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