Intel CEO Gelsinger confident in long-term goals - Mobile World Live

Intel CEO Gelsinger confident in long-term goals

21 FEB 2022

Intel CEO Pat Gelsinger (pictured) offered a bullish outlook on the company’s future due to its funding strategy during a meeting with investors, but predicted a few speed bumps over the course of the next few years.

During the meeting on February 17 Gelsinger said Intel was well positioned across its six product lines, but profit margins will be muted in the near term as it ramps investments including construction of new production facilities in the US and Europe, along with a $5.4 billion takeover bid for Tower Semiconductor.

Intel expects non-GAAP gross margin to drop to 52 per cent this year from nearly 58 per cent in 2021.

Gelsinger said Intel expects low single-digit overall revenue growth this year, increasing to the mid-to-high single-digits in 2023 to 2024 and 10 per cent to 12 per cent in 2025 to 2026.

The CEO said he wants to double Intel’s earnings and multiple over the coming years.

Driven in part by the need for more powerful compute capabilities, Gelsinger predicted semiconductor industry revenues will double to $100 trillion by 2030.

Gelsinger’s “moonshot” for chip manufacturing entails reducing reliance on Asian chip manufacturers from 80 per cent in 2020 to 50 per cent by 2030. This would include an increase in US production from 12 per cent today to 20 per cent and from 9 per cent to 20 per cent in Europe.

The CEO noted this would also improve the resiliency of the supply chain.

Gelsinger said Intel’s advanced driving assistance systems chip unit Mobileye remained on track for an IPO, but it was too soon to provide additional information.

Back

Author

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...

Read more

Related

Tags