Intel’s new CEO: 7Nm project is recovering, but it is still possible to expand chip manufacturing outsourcing

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Sina science and technology news on the morning of January 22, according to reports, Intel’s incoming CEO pat Gelsinger said on the financial report conference call on Thursday that the 7-nanometer chip manufacturing process will be used for chips sold in 2023. Previously, Intel’s 7Nm process encountered a series of problems.
However, Gelsinger also said that Intel is still likely to outsource more chip production to external factories.
Gelsinger disclosed the information in the fourth quarter earnings conference call. The fourth quarter of last year was also Intel’s last full quarter, led by CEO Bob swan. Gelsinger will take over as CEO of Intel from swan on February 15.
Intel shares closed up 6.46% on Thursday. Due to the strong performance of the PC market, the company reported fourth quarter revenue and profit data that exceeded analysts’ expectations and the company’s previous outlook. However, Intel announced the details of its earnings report a few minutes before the closing of the US stock market, which led to the subsequent fall of its share price.
Key points of Intel’s fourth quarter financial report include:
-Adjusted earnings per share was $1.52, better than analysts’ average expectation of $1.10.
-Revenue was $20 billion, better than analysts’ average forecast of $17.49 billion.
-Outlook: revenue for the first quarter is expected to be $18.6 billion, with earnings per share of $1.03.
“I’m happy with the recovery and progress of the 7Nm project,” Gelsinger said. I believe that most of our products in 2023 will be manufactured in-house. At the same time, considering the breadth of our product portfolio, we are likely to expand the use of external chip foundry in some product technologies. ”
7 nano technology is in trouble, which has brought a series of problems to Intel. Intel is still catching up with Asian chipmakers in 7Nm technology. Historically, Intel has been engaged in chip design and manufacturing at the same time, but competitors like AMD are now more focused on chip design and outsourcing chip manufacturing to foundry.
Intel’s latest chips use a 14nm or 10nm process, while chip manufacturers such as TSMC and Samsung currently use a 5nm process. More sophisticated manufacturing processes can accommodate more transistors per unit area, resulting in higher efficiency and more powerful processors.
In December last year, Dan Loeb, a radical investor and CEO of hedge fund third point, said in an email to Intel’s board that lagging behind competitors has become Intel’s most serious weakness. He pointed out that Intel currently lags behind Asian chip manufacturers, and urged Intel’s board of directors to reform the company in many aspects, including considering outsourcing chip manufacturing and divesting some businesses, such as acquired businesses.
Intel’s customers, such as apple, Amazon and Microsoft, are developing their own processors or have plans to develop their own processors.
Gelsinger was previously CEO of VMware. He has a technical background and started his career at Intel. He is expected to boost Intel’s competitiveness in chip manufacturing. Intel said it had started mass production of 10 nanometer chips in the fourth quarter and will further expand its production capacity this quarter.