Global PC shipments are declining, and Intel's Q4 revenue is dismal.

(Reuters)

Intel's stock price fell sharply due to weak Q4 financial report

[Reporter Li Qiwen/Comprehensive Report] In 2022, the Russian-Ukrainian war and inflation will hinder the economic recovery of various countries. The semiconductor industry will face headwinds due to sluggish demand. A few days ago, the fourth quarter financial report was announced. Not only did it turn from profit to loss, but its performance fell sharply by 32%, causing Intel's stock price to plummet by 6.4% on that day (1/27), and its market value evaporated nearly US$8 billion (NT$240.5 billion). Intel's stock price has fallen by more than 40%.

Intel’s revenue last year reached US$63.1 billion (approximately NT$1.9 trillion), a 16% drop from 2021. Looking ahead, this year’s Q1 revenue is not optimistic, and it may hit Intel’s lowest single-quarter revenue since 2010. CEO Ji Xin As the current environment is full of uncertainties, it is expected that Intel's operating pressure will still be high in the first half of this year.

Once the world's most leading and powerful IT giant in the past, the reason why Intel is now declining is worth exploring.

Please read on...

Kissinger believes that Intel's operations may continue to face pressure in the first half of this year.

(Bloomberg)

AMD forms alliance with TSMC to beat Intel

Unlike Intel, although chip hegemony TSMC has also been impacted, this year’s Q1 revenue is roughly estimated to have dropped by about 14%, but it can still achieve a slight increase. Even though the semiconductor industry faced inventory adjustments last year, Q4 revenue still increased by 26.7%. Profit even exceeded the 1 trillion yuan mark; as for UMC, the second brother of chips, Q4 revenue increased by 3.29% year-on-year, and last year's annual revenue increased by 30.84%, which was also better than Intel's performance.

In the chip design and server market, AMD continued to carve up the Intel market due to its aggressive approach. After AMD and TSMC cooperated, they successfully launched Milan and Milan-X processors, while Intel continued to lose market share due to process bottlenecks. Currently, AMD's processor market share has exceeded 30%, while Intel's has declined to about 70%.

Intel's revenue hit the biggest decline in 10 years, allowing rival AMD to catch up.

The picture shows Su Zifeng, CEO of AMD.

(AFP)

Cut your spending!

Intel Layoffs, Expansion Call Card

Intel continued to implement the factory expansion plan last year, hoping that when the economy recovers and the chip market recovers in the future, the production capacity can be quickly put in place, and part of the chip production capacity will be transferred from Asia to Europe and the United States to achieve the effect of risk diversification.

However, in order to save the company's expenses, Intel previously stated that it would cut the company's tens of billions of dollars in operating costs. In addition to laying off hundreds of employees, it also encouraged unpaid leave. It is reported that there will be another wave of layoffs in March. In addition, Intel has suspended its plan to build the "IDC12" development center in the Matam Technology Park in Haifa, Israel. The idle area will be converted into a parking lot for the park employees in the future.

In addition, foreign media recently revealed that Intel’s plan to build a research and development center in Hillsborough, Oregon, USA, has also been temporarily shelved in view of growing concerns about an economic recession. It is not difficult to see Intel’s operating conditions difficult.

Due to business losses and economic recession, Intel also began to lay off employees.

(Reuters)

The technology lags behind Intel's efforts to transform is difficult

Intel's gradual decline may be due to past positioning and operational missteps. Just as TSMC and Samsung have advanced to 3nm, Intel has just stepped into 7nm and announced that it will launch 3nm before the end of this year. However, the advanced process technology lags behind , has become a fatal injury to Intel. After 30 years, Intel has already fallen from the top position in the global semiconductor market value to No. 6 and No. 7.

Intel, which has promoted the transformation for many years, has not been effective. In addition, Randhir Thakur, the general who led Intel's IDM 2.0 foundry business, resigned, which seems to reveal that Intel's future operations and prospects are facing many challenges.

Intel's technology lagged behind the market for many years and lost its leading position in semiconductors.

Pictured is an Intel Core i7 chip.

(Reuters)

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