Economic downturn takes toll on Intel - Mobile World Live

Economic downturn takes toll on Intel

29 JUL 2022

Intel CEO Pat Gelsinger (pictured) stated its performance in Q2 fell below the company’s and shareholder’s standards as the chipmaker posted a net loss on lower revenue.

On an earnings call, Gelsinger blamed a rapid decline in economic activity as the largest factor in Intel’s Q2 performance, but acknowledged the numbers also reflected problems with execution.

It fell from a $5 billion profit in Q2 2021 to a $454 million loss, with revenue down 22 per cent to $15.3 billion

Intel’s Client Computing Group, which includes PC chips, generated revenue of $7.7 billion in revenue, down 25 per cent. Its Datacentre and AI division, which delivers server chips; accelerators; memory; and field-programmable gate arrays, was down 16 per cent to $4.6 billion.

The Network and Edge segment generated $2.3 billion in revenue, up 11 per cent.

The company could benefit from the passing of revised US legislation covering subsidies to bolster domestic production of chips: Intel reportedly halted construction on a $20 billion chip plant in Ohio as it waited for politicians to advance the bill, which was first proposed in 2021.

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Mike Robuck

Mike Robuck is the U.S. Editor at Mobile World Live. He joined the Mobile World Live staff in February of 2022. Prior to joining GSMA, he was editor of FierceTelecom and of Light Reading’s Telco Transformation microsite. He has a...

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