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erek
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Pat Gelsinger's initials are etched into Intel's processors
"Intel has faced its old failures since Gelsinger took the helm in 2021, and is actively trying to catch up to TSMC through a process that Intel calls “four nodes in five years.”
It hasn’t been easy. Gelsinger referred to its goal to regain leadership as a “death march” in 2022.
Now, the march is starting to reach its destination, and Intel said on Thursday that it’s still on track to catch up by 2026. At that point, TSMC will be shipping 2nm chips. Intel said it will begin producing its “18A” process, equivalent to 2nm, by 2025.
It hasn’t been cheap, either. Intel reported a $2.5 billion operating loss in its foundry division on $4.4 billion in mostly internal sales. The sums represent the vast investments Intel is making in facilities and tools to make more advanced chips.
“Setup costs are high and that’s why there’s so much cash burn,” said Bassi, the Counterpoint analyst. “Running a foundry is a capital-intensive business. That’s why most of the competitors are fabless, they are more than happy to outsource it to TSMC.”
Intel last month reported a $7 billion operating loss in its foundry in 2023.
“We have a lot of these investments to catch up flowing through the P&L,” Gelsinger told CNBC’s Jon Fortt on Thursday. “But basically, what we expect in ’24 is the trough.”
Not many companies have officially signed up to use Intel’s fabs. Microsoft has said it will use them to manufacture its server chips. Intel says it’s already booked $15 billion in contracts with external companies for the service.
Intel will help its own business and enable better performance in its products if it regains the lead in making the smallest transistors. If that happens, Intel will be back, as Gelsinger is fond of saying.
On Thursday, Gelsinger said demand was high for this year’s forthcoming server chips using Intel 3, or its 3nm process, and that it could win customers who had defected to competitors.
“We’re rebuilding customer trust,” the CEO said on Thursday. “They’re looking at us now saying ‘Oh, Intel is back.’”"
Source: https://www.cnbc.com/2024/04/26/int...industry-now-struggling-to-stay-relevant.html
"Intel has faced its old failures since Gelsinger took the helm in 2021, and is actively trying to catch up to TSMC through a process that Intel calls “four nodes in five years.”
It hasn’t been easy. Gelsinger referred to its goal to regain leadership as a “death march” in 2022.
Now, the march is starting to reach its destination, and Intel said on Thursday that it’s still on track to catch up by 2026. At that point, TSMC will be shipping 2nm chips. Intel said it will begin producing its “18A” process, equivalent to 2nm, by 2025.
It hasn’t been cheap, either. Intel reported a $2.5 billion operating loss in its foundry division on $4.4 billion in mostly internal sales. The sums represent the vast investments Intel is making in facilities and tools to make more advanced chips.
“Setup costs are high and that’s why there’s so much cash burn,” said Bassi, the Counterpoint analyst. “Running a foundry is a capital-intensive business. That’s why most of the competitors are fabless, they are more than happy to outsource it to TSMC.”
Intel last month reported a $7 billion operating loss in its foundry in 2023.
“We have a lot of these investments to catch up flowing through the P&L,” Gelsinger told CNBC’s Jon Fortt on Thursday. “But basically, what we expect in ’24 is the trough.”
Not many companies have officially signed up to use Intel’s fabs. Microsoft has said it will use them to manufacture its server chips. Intel says it’s already booked $15 billion in contracts with external companies for the service.
Intel will help its own business and enable better performance in its products if it regains the lead in making the smallest transistors. If that happens, Intel will be back, as Gelsinger is fond of saying.
On Thursday, Gelsinger said demand was high for this year’s forthcoming server chips using Intel 3, or its 3nm process, and that it could win customers who had defected to competitors.
“We’re rebuilding customer trust,” the CEO said on Thursday. “They’re looking at us now saying ‘Oh, Intel is back.’”"
Source: https://www.cnbc.com/2024/04/26/int...industry-now-struggling-to-stay-relevant.html