Intel has struggled recently to get more advanced chip architectures out the door, but that may change soon. CEO Pat Gelsinger announced in an Intel second-quarter earnings call today that “7nm is progressing well,” and the company is preparing to announce in a webcast how to “accelerate its annual innovations with new advances in semiconductor processes and packaging.” on Monday, July 26th.
The announcement comes alongside Intel’s Q2 result, with a semiconductor company managed to beat expectations and brings in $ 18.2 billion in revenue, up 2 percent from a year earlier. Intel is also quite optimistic about the future. It raised its 2021 outlook by another $ 1 billion to $ 73.5 billion, and is now expected to achieve year-over-year revenue growth compared to 2020.
Intel ‘s revenue has grown in recent quarters, despite frequent delays and 10 nm and 7nm chip. This growth has been demand spikes for both personal computers and data center chips in 2020 due to the COVID-19 pandemic. Millions of people bought new laptops for telecommuting and education, as well as increased reliance on cloud services.
And Intel still seems to be riding that wave, recording $ 10.1 billion in revenue for the customer’s computing team (6 percent more than a year ago, and a Q2 record for the company) despite a global semiconductor shortage. Gelsinger commented during the call that he “waits[s] the shortage will run out towards the end [of the year, but] it will take another two years before the industry can fully meet demand. “
The increase in the customer computing group also helped Intel offset slower revenues from its data center group, which was down 9 percent from the previous year and had revenue of $ 6.5 billion. However, there are signs that the impressive growth in the PC segment is beginning to slow: both IDC and Gartner said that PC sales growth is slowed significantly in the second quarter, which may indicate that sales growth there will decline in the coming months.
The past year has been a turbulent year for Intel. Last summer, the company had to admit that it is severely delaying its operations future 7nm architecture for the next generation of processors. That news was followed by the company’s hardware manager, Dr. Venkata (Murthy) Renduchintala, and to replace CEO Bob Swan With Pat Gelsinger (the company’s former technology office and hardware engineer) while trying to repair the ship.
Gelsinger has not wasted time trying to make changes to get Intel back on track by announcing a the new “IDM 2.0” initiative in March, which aims to see Intel return as the industry leader in chip manufacturing. As part of this plan, the company will outsource production of “products at the core of Intel’s computer offering” to competitors such as TSMC and Samsung from 2023 onwards.
Intel is also looking to launch a new branch of the business, Intel Foundry Services, which will enable third-party manufacturing projects, including a $ 20 billion investment to expand Arizona’s manufacturing facilities.
Given the extra huge demand from chip manufacturing companies in light of the global semiconductor shortage, Intel Foundry Services can be a big profit for the company. Intel announced today that it has more than 100 potential customers interested in the service, and promised more news on the new initiative on Monday, but it will take some time before the company gets up.