{"id":209488,"date":"2021-03-24T03:54:00","date_gmt":"2021-03-24T00:54:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-intels-new-ceo-makes-bold-moves-in-manufacturing\/"},"modified":"2021-03-24T03:54:00","modified_gmt":"2021-03-24T00:54:00","slug":"opinion-intels-new-ceo-makes-bold-moves-in-manufacturing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-intels-new-ceo-makes-bold-moves-in-manufacturing\/","title":{"rendered":"#\n  Opinion: Intel\u2019s new CEO makes bold moves in manufacturing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af65dfd39fd7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af65dfd39fd7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-intels-new-ceo-makes-bold-moves-in-manufacturing\/#Lots_of_risks_involved_in_new_strategy_to_create_an_Intel_foundry_services_business\" >Lots of risks involved in new strategy to create an Intel foundry services business<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-intels-new-ceo-makes-bold-moves-in-manufacturing\/#Therese_Poletti\" >Therese Poletti<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: Intel\u2019s new CEO makes bold moves in manufacturing<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Lots_of_risks_involved_in_new_strategy_to_create_an_Intel_foundry_services_business\"><\/span>\n  Lots of risks involved in new strategy to create an Intel foundry services business<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000209038\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Intel Corp\u2019s new Chief Executive Pat Gelsinger laid out some bold moves Tuesday to make the chip giant great again, a plan that includes using its manufacturing prowess to reduce some of the semiconductor industry\u2019s reliance on Asian manufacturing.<\/p>\n<p> One of the biggest surprises in his hour-long webcast with Wall Street and reporters was the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> that Intel<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"negative\">-3.28%<\/bg-quote><br \/>\n       will create a foundry business, as part of a three-pronged manufacturing strategy he called IDM (integrated Device Manufacturing) 2.0. Intel will continue to make its own chips, and has made big leaps in resolving its issues moving to the next-generation, 7-nanometer process. But it will also  expand its use of third-party manufacturers, and it will now make chips for others.<\/p>\n<div class=\"paywall\">\n       Gelsinger said  Intel will manufacture chips for other companies via a separate entity from Intel\u2019s core business making chips for PCs, servers and data centers.  The company also plans to spend $20 billion on two new fabrication facilities in Arizona, where it already has fabs, and that capacity will be both for Intel products and for foundry customers.<\/p>\n<p>\u201cThe majority of leading-edge foundry capacity is concentrated in Asia, while the industry needs more geographically balanced manufacturing capacity,\u201d said Gelsinger, who officially started as CEO <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PGelsinger\/status\/1361344826831069185\" class=\"icon none\">on Feb. 15<\/a>. <\/p>\n<p>He also hinted that the company may build additional capacity in the European Union, as part of the plan to serve U.S. and European customers. Intel already has some manufacturing in Ireland. He said there are potential financial incentives from both the U.S. and the European Union governments, but that Intel is committed to this strategy, even without any government funding. <\/p>\n<p>\u201cWe want investments because it is the right thing for them to accelerate manufacturing in this imbalance of the global supply chain,\u201d Gelsinger said in response to a question. \u201cBut we\u2019re making these commitments without any commitments from the governments to accelerate them but we\u2019ve gotten such positive responses.\u201d<\/p>\n<p>\u201cThis is both a good business as well as a good political move,\u201d said Jack Gold, principal analyst of J. Gold Associates, in a research note. \u201cIn fact, it\u2019s likely that we\u2019ll see more announcements related to this drive to make more chips in the U.S. and Europe.\u201d<\/p>\n<p>Intel has dabbled in foundry services in the past, but analysts said this time <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be different. The company will be creating a separate subsidiary called Intel Foundry Services, headed up by Randhir\u202fThakur, who most recently was corporate vice president of global supply management at Intel. The company will be offering industry-standard tools and equipment, so its potential customers won\u2019t have to use Intel design rules or tools to make their chips. <\/p>\n<p>\u201cTo be a foundry you have to be able to export from TSMC and Samsung and others,\u201d said Pat Moorhead, principal analyst at Moor Insights and Strategy. He said the fact that Intel showed the corporate logos of Cadence Design Systems Inc.<br \/>\n        CDNS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207095682\/composite\" class=\"positive\">+0.22%<\/bg-quote><br \/>\n       and Synopsys Inc.<br \/>\n        SNPS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208349984\/composite\" class=\"positive\">+0.30%<\/bg-quote><br \/>\n       meant it was committed to industry standards.<\/p>\n<p>Gold noted that Intel will have to convince its customers, some of whom will likely be competitors of the chip giant,  that their intellectual property will be safe and that the priorities of Intel the chip maker will not preempt their production needs for its own. \u201cProduction planning is fine, but in the real world, things change quickly and Intel needs to be seen as both flexible and reliable,\u201d he said.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Gelsinger is proving he is working fast to make big changes at the company where he had spent three decades, before leaving to join EMC Corp. and eventually becoming the CEO of VMware Inc.<br \/>\n        VMW,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209864107\/composite\" class=\"negative\">-0.88%<\/bg-quote><span>.<\/span><br \/>\n       He said he is working to return Intel to a \u201cGrovian culture,\u201d a reference to Intel\u2019s former Chief Executive Andy Grove, and \u201cexecute, execute, execute.\u201d <\/p>\n<p>\u201cWe\u2019re bringing back the execution discipline of Intel,\u201d he said. \u201cYou know what? I call it the Grovian culture, that we do what we say that we\u2019ll do.\u201d<\/p>\n<p>Investors so far liked the news, pushing Intel shares up nearly 7% in after-hours trading. There are plenty of risks associated with the new strategy, including the fact that new capacity planned will take a few years to build and will not address the current global chip shortages.  But when they are built, Intel is clearly hoping as part of its turnaround, it will play a big new role on the worldwide semiconductor-manufacturing stage, and lead a rebalancing of the global supply chain. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Therese Poletti\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Therese_Poletti\"><\/span>Therese Poletti<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D3308E29DFDC%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: Intel\u2019s new CEO makes bold moves in manufacturing &#8221; Lots of risks involved in new strategy to create an Intel foundry services business Intel Corp\u2019s new Chief Executive Pat Gelsinger laid out some bold moves Tuesday to make the chip giant great again, a plan that includes using its manufacturing prowess to reduce&#8230;<\/p>\n","protected":false},"author":1,"featured_media":93115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-209488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/209488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=209488"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/209488\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/93115"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=209488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=209488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=209488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}