Intel has recently encountered difficulties in chip manufacturing, but its CEO Pat Gelsinger said he believes the company is catching up with its chip manufacturing competitors faster than he expected.
He said this on the company’s recent financial conference call, and you usually want to hear the CEO expand his company. Nevertheless, Intel now believes that it is rapidly moving from behind the curve to the curve.
“…All these nodes, Intel 7, Intel 4, Intel 3, Intel 28, Intel 18A, are as planned or in advance,” Gelsinger said in the Q&A section of the earnings call (via Find Alpha). “Relatively speaking, we are closing the gap with the industry, perhaps faster than I expected a quarter ago.”
Gelsinger here may refer to TSMC as its main competitor in the chip manufacturing business, but Samsung is also a large chip foundry.
TSMC manufactures most of AMD’s chips on its 7nm process, and Apple recently announced new chips using TSMC’s 5nm process, including the impressive M1 Max. On the other hand, Intel is preparing for its first desktop chip on Intel’s 7 process node, which was previously called the 10-nanometer enhanced SuperFin.
If you want to know what this means for your gaming PC, Intel also stated that its substantial cash investment in its own business-which will reach 28 billion U.S. dollars next year-will result in “quality products with excellent pricing and profit margins.” .
“As a result, these investments will produce quality products with superior pricing and profit margins faster than we even predicted a quarter ago.”
However, context is critical here. This is financially superior, just like Intel’s superior pricing and profit margins when talking to shareholders on conference calls. However, unless you have a great product, you can’t start charging more. Just like AMD’s Ryzen Zen 3 processor, it has put Intel’s delivery pressure over the past year, but it has also brought higher the cost of.
“Obviously, we still have a few years to work on,” Gelsinger concluded. “But it will be a good result. And we believe that over time, all our current positive tendencies will bring huge returns to our customers and shareholders in the market.”
There is no doubt that Intel does seem to be adding fuel to the research and development of its historical competitors (AMD) and new competitors (Nvidia and Arm). The first seems to be Intel Alder Lake, and it is said that the new hybrid desktop chips will indeed arrive soon.