Intel Corp is hitting all the targets it has set on a path to regain leadership in semiconductor manufacturing, an executive responsible for the effort said on Monday.
“We’re completely on track,” Intel vice president Ann Kelleher, the head of technology development, told a news briefing in San Francisco. “We do quarterly milestones, and according to those milestones we’re ahead or on track.”
Intel CEO Pat Gelsinger has vowed to regain leadership in production technology, formerly one of the foundations of the company’s decades of dominance in the US$580 billion industry.
Photo: Bloomberg
Kelleher’s team is trying to make up for the chipmaker’s delay in delivering a manufacturing technique that arrived five years later than originally promised.
The group is accelerating the effort to introduce new processes at an unprecedented pace.
If Gelsinger’s plan succeeds, Intel stands to reverse market share losses to rivals such as Advanced Micro Devices Inc and Nvidia Corp. Better production would also allow Intel to attract customers for the CEO’s attempt to take on Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co in the growing business of contract manufacturing.
Kelleher said Intel is taking a far more pragmatic approach than in the past, building in contingency plans to make sure there are no more major delays.
The company is also relying more on equipment vendors for help, rather than trying to do all of the work itself, she said.
“Intel in the past had high walls in terms of not sharing,” said Kelleher, who has been with the Santa Clara, California-based company for more than 30 years. “We don’t need to lead in everything.”
Intel is trying to improve its manufacturing capabilities as it struggles with declining revenue and a steep drop in demand for personal computers, which generate more than half its sales.
In October, the company said actions, including headcount reductions and slower spending on new plants, would result in savings of US$3 billion next year, with annual cuts swelling to much as US$10 billion by the end of 2025.
Intel is now mass producing 7-nanometer chips. It is ready to start manufacturing 4-nanometer semiconductors and to move to 3 nanometers in the second half of next year, Kelleher said.
She added that her budget is secure and would not be affected by the company’s cost cuts.
In related news, Intel yesterday confirmed that Gelsinger is visiting today and tomorrow the company’s Taiwanese PC and server partners, including Acer Inc (宏碁), Asustek Computer Inc (華碩) and Quanta Computer Inc (廣達).
That is part of Gelsinger’s Asia tour. He is to fly next to South Korea to meet Samsung Electronics Co executive chairman Lee Jae-yong.
Additional reporting by Lisa Wang
US sports leagues rushed to get in on the multi-billion US dollar bonanza of legalized betting, but the arrest of an National Basketball Association (NBA) coach and player in two sprawling US federal investigations show the potential cost of partnering with the gambling industry. Portland Trail Blazers coach Chauncey Billups, a former Detroit Pistons star and an NBA Hall of Famer, was arrested for his alleged role in rigged illegal poker games that prosecutors say were tied to Mafia crime families. Miami Heat guard Terry Rozier was charged with manipulating his play for the benefit of bettors and former NBA player and
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
BREAKTHROUGH TECH: Powertech expects its fan-out PLP system to become mainstream, saying it can offer three-times greater production throughput Chip packaging service provider Powertech Technology Inc (力成科技) plans to more than double its capital expenditures next year to more than NT$40 billion (US$1.31 billion) as demand for its new panel-level packaging (PLP) technology, primarily used in chips for artificial intelligence (AI) applications, has greatly exceeded what it can supply. A significant portion of the budget, about US$1 billion, would be earmarked for fan-out PLP technology, Powertech told investors yesterday. Its heavy investment in fan-out PLP technology over the past 10 years is expected to bear fruit in 2027 after the technology enters volume production, it said, adding that the tech would
YEAR-END BOOST: The holiday shopping season in the US and Europe, combined with rising demand for AI applications, is expected to drive exports to a new high, the NDC said Taiwan’s business climate monitor improved last month, transitioning from steady growth for the first time in five months, as robust global demand for artificial intelligence (AI) products and new iPhone shipments boosted exports and corporate sales, the National Development Council (NDC) said yesterday. The council uses a five-color system to measure the nation’s economic state, with “green” indicating steady growth, “red” suggesting a boom and “blue” reflecting a recession. “Yellow-red” and “yellow-blue” suggest a transition to a stronger or weaker condition. The total score of the monitor’s composite index rose to 35 points from a revised 31 in August, ending a four-month
RSS