US chip maker Intel lagged behind previous years in terms of earnings, despite the shortage of semiconductors. During the chip crisis that empowered rival manufacturers, Intel’s revenues fell 21 percent year-over-year to $4.6 billion.
Intel was the world’s largest chipmaker until 2021, when it was dethroned by Samsung. Although the chip competition between Samsung and Intel is progressing in different markets, this is an indication that Intel has fallen because it does not produce new technology.
Intel admits it lags far behind its competitors
The International Institute for Management Development (IMD) tracked the future readiness of their companies and announced that Intel did not even make it to the top 10 in the technical information sector (rank 16). Wedbush Securities analyst Matt Bryson said, “Intel; It lagged behind AMD in chip design and Taiwan Semiconductor (TSMC) in manufacturing.” said.
During the most recent earnings report with analysts, Intel CEO Pat Gelsinger had to admit that the technical know-how on Intel’s data center processors hasn’t changed in 5 years. “It’s embarrassing to say.” said.
For years, Intel has wanted to make sure every product earns enough to feed its multi-billion dollar factory community, but this strategy has made the company more and more protective. However, the chip giant; He also admitted that he struggled to innovate, as he managed to supply chips to computers, servers and information centers.
Clearly, the company’s gross margin—all revenue minus production prices—has been falling for almost a decade. The biggest danger to a tech firm may be that new tech isn’t created fast enough and it goes back to promoting old products.
The big challenge for CEO Pat Gelsinger is whether he can quickly change an Intel tradition built on self-confidence. Intel may be looking to set up a facility service to regain massive scale in chip manufacturing, but the real question is how will it make the innovative move it hasn’t been able to in a decade, in a few years?
You can share your views on Intel’s new strategy in the comments section and on the SDN Forum.
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