04:05
+5 C°
Traffic jam:   0
$
77.1657
91.7809

Intel's new CEO to build two new chip factories in Arizona

25 March 2021
2573
2 min.
14
Intel's new CEO to build two new chip factories in Arizona

New chip plants in Arizona

Intel shares rose 3.7 percent after the company's new CEO announced plans to build two new plants for about $20 billion. Intel could expect success, given the global chip shortage and Biden's pledge to support U.S. semiconductor manufacturing.

Intel (INTC) shares hit a new price high in the past 52 weeks in early trading on Wednesday amid news the company plans to build two new chipmaking plants in Arizona and expand existing capacity at plants in the US and Europe.

Intel's new CEO Patrick Gelsinger disclosed Intel's plans during a web presentation on Tuesday to not only increase its own chip production but also to become a contract manufacturer for other chipmakers. To that end, the company has set up a new Intel Foundry Services (IFS) business unit to be headed by Dr Randhir Thakur.

Intel expects that its factories may win contracts from the likes of Apple (AAPL), Amazon (AMZN), Google (GOOG, GOOGL), Microsoft (MSFT) and Qualcomm (QCOM). However, only Microsoft CEO Satya Nadella has so far expressed official support for Intel's move.

Intel has announced that IBM will be a partner in the development of its chips and technology.

Intel's forecast for 2021

Intel on Tuesday gave its business outlook for 2021:

  • annual earnings per share of $4.55, below average analyst forecasts of $4.77;
  • expected revenue of $72bn is also below estimates of $72.94bn;
  • Intel's planned annual capital expenditure in the range of $19bn. $20bn above analysts' expectations of $14.59bn.

Intel has backing from government

US President Joe Biden said in February that domestic semiconductor manufacturing was a priority for his administration. For example, automakers Ford (F) and General Motors (GM) have had to reduce production plans due to chip shortages, a problem affecting not only the US, but also Europe and the rest of the world. It is worth noting that the government is seeking to make the semiconductor industry more independent of supplies from Asia and prevent risks of supply chain disruptions. Earlier this year, Congress passed the Semiconductor Manufacturing Incentives for the Semiconductor Industry (CHIPS) Act and Intel hopes to get fast-track funding help.

Persons4 and Companies10 in the news

Senior vice president and the president of Intel Foundry Services
1 place
Chief Executive Officer of VMware
2 place
Сhief executive officer of Microsoft
3 place
46th President of the United States
4 place
Qualcomm
3 place
Intel
4 place
Microsoft
6 place
Apple
8 place
Amazon
9 place
Section:

Discussion

Rating companies
Tesla
52 Mention
Apple
51 Mention
Amazon
49 Mention
Nasdaq
46 Mention
Dow Jones
40 Mention
Facebook
38 Mention
White House
31 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director