INTEL WILL MANUFACTURE MOST OF ITS PRODUCTS IN THE U.S.: CEO
The incoming chief executive of Intel Corp. said that most of the company’s 2023 products will be made in the company’s factories but outlined a dual-track future in which Intel will lean more heavily on outside factories.
Shares rose 6.5% during regular trade, when the results were released ahead of the close. The Financial Times quoted the company as saying it had been hacked. After hours shares fell about 1.9%, Stephen Nellis, Ayanti Bera and Peter Henderson reported for Reuters on January 22, 2021.
Intel last week named Pat Gelsinger of VMware Inc as its incoming chief executive effective Feb. 15 as it grapples with delays in its 7-nanometer chip manufacturing technology.
On an earnings call on Thursday, Gelsinger said he had reviewed the company’s manufacturing operations over the previous week and was “confident that the majority of our 2023 products will be manufactured internally” though he also said that Intel’s use of outside chip factories is likely to increase “for certain technologies and products.”
Intel said fourth-quarter sales from its PC chip business were $10.9 billion, compared with analyst estimates of $9.57 billion, according to FactSet data. Data center group sales, which powered Intel’s growth over the past several years, were $6.1 billion compared with analyst estimates of $5.48 billion, according to FactSet data.
But sales to cloud computing customers, some of the largest and fastest-growing purchasers of data center chips, were down 15% in the fourth quarter.
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