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Tag: Pat Gelsinger

  • Intel Slashes Employee Pay Rather Than Reduce Dividend

    Intel Slashes Employee Pay Rather Than Reduce Dividend

    Intel is showing where its priorities are, slashing employee pay in an effort to maintain its quarterly dividend.

    Intel is in trouble, with the company losing $8 billion of its market value in what has been described as a “historic collapse” that was triggered when the company warned it would miss analysts’ revenue expectations by billions.

    According to SemiAnalysis, the company has now resorted to cutting employee pay in an effort to make its quarterly dividend. Principal Engineers, grades 7 to 11, will see a 5% cut. VPs will see a 10% cut and executive leadership will see a 15% cut. CEO Pat Gelsinger’s pay will drop by 25%.

    According to The Oregonian, hourly employees’ pay won’t be cut, nor will their annual bonuses. They will, however, lose out on other incentives, such as merit-based raises, quarterly profit-sharing bonuses, and more.

    “These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy,” Intel spokesperson Will Moss said. “We are grateful to our employees for their commitment to Intel and patience during this time as we know these changes are not easy.”

    Intel’s strategy is an incredibly dangerous one since it risks alienating the very employees and engineers the company needs to turn things around. Cutting employees’ pay, in the middle of an economic downturn no less, sends a clear message to employees that they are not as important to leadership as lining investors’ pockets.

    Our money is on this decision coming back to haunt Intel, with the company likely to start losing its top talent to companies that won’t sell them out.

  • Intel Loses $8 Billion Market Value in ‘Historic Collapse’

    Intel Loses $8 Billion Market Value in ‘Historic Collapse’

    Intel’s recovery hit a major speed bump Friday as the company saw $8 billion of its market value wiped away, surprising analysts.

    Intel has been working to reclaim its spot as the world’s top chipmaker but has been experiencing setbacks in recent months. The company announced a surprise $500 million loss at the end of July, but that doesn’t begin to compare with the bloodbath resulting from the company’s latest announcement.

    Late Thursday, Intel gave guidance for the upcoming quarter that was billions below analysts’ expectations. Analysts were expecting $14 billion in revenue, but Intel’s guidance for Q1 was in the $10.5 to $11.5 billion range.

    “No words can portray or explain the historic collapse of Intel,” said Rosenblatt Securities’ Hans Mosesmann, according to Reuters, who says the analyst was among 21 analysts that cut Intel’s price target.

    Intel, like many companies, is struggling with a slump in the computer market as post-pandemic demand has significantly slowed. The company is also facing a slowdown in the data center market, a segment it has traditionally dominated.

    Read More: AMD Continues to Chip Away at Intel’s Server Dominance

    None of that, however, compares to the challenges Intel faces catching up with its rivals in the technology department. TSMC has a significant technological lead over virtually every other chipmaker. What’s more, Intel’s biggest rival, AMD, relies on TSMC to manufacture its chips. This has helped AMD make major headway against Intel, both in the computer and data center space.

    “AMD’s Genoa and Bergamo (data center) chips have a strong price-performance advantage compared to Intel’s Sapphire Rapids processors, which should drive further AMD share gains,” said Matt Wegner, an analyst at YipitData, told Reuters.

    Unfortunately, analysts believe Intel’s troubles may be just beginning.

    “It is now clear why Intel needs to cut so much cost as the company’s original plans prove to be fantasy,” brokerage Bernstein said.

    “The magnitude of the deterioration is stunning, and brings potential concern to the company’s cash position over time.”

  • Intel CEO Calls China Sanctions ‘Inevitable,’ Says Supply Chain Must Rebalance

    Intel CEO Calls China Sanctions ‘Inevitable,’ Says Supply Chain Must Rebalance

    Intel CEO Pat Gelsinger has weighed in on US restrictions on China’s semiconductor industry, calling the measures “inevitable.”

    The US has been aggressively restricting semiconductor exports to China, limiting any such exports to older technology that is several generations old. The US has even used its export rules to prevent overseas companies from exporting to China if they use US tech in their manufacturing process.

    According to The Wall Street Journal, Gelsinger says such measures are to be expected.

    “I viewed this geopolitically as inevitable,” Mr. Gelsinger said. “And that’s why the rebalancing of supply chains is so critical.”

    Gelsinger likened the importance of semiconductors to the role oil has played for half a century.

    “Where the oil reserves are defined geopolitics for the last five decades. Where the fabs are for the next five decades is more important,” Mr. Gelsinger added.

    Intel, like many companies, is working to rebalance the semiconductor supply chain, buoyed by US legislation making more than $52 billion available to companies that increase chip production in the US. Intel has announced plans for a $20 billion semiconductor “mega-site” facility in Ohio, as well as $80 billion in EU-based production.

  • Intel Prepares to Lay Off Thousands

    Intel Prepares to Lay Off Thousands

    Intel is reportedly planning to lay off thousands of workers amid a slump in demand for PCs.

    Since his return, CEO Pat Gelsinger has been working to turn Intel around and bring it back to its former glory. The company has been building new foundries in an effort to attract new business and has been working to close the technological gap with AMD and TSMC.

    The company’s turnaround plans may be taking a hit, however. Bloomberg reports Intel plans mass layoffs, with thousands potentially impacted. The layoffs could be announced as early as later this month when the company announces third-quarter earnings.

    Read more: Intel’s CEO: ‘AMD In the Rearview Mirror…Never Again In the Windshield’

    According to the outlet’s sources, the cuts will especially target sales and marketing, with some departments poised to lose as much as 20% of their staff.

    If the report is true, it’s the latest evidence of an economic downturn and a transition to post-pandemic normalcy. During the peak of the pandemic, computer and electronics makers couldn’t keep up with demand as record numbers of individuals worked from home and needed new computers, tablets, and smartphones to stay connected. As things have returned to normal, however, demand for products and services has dropped across industries.

    Gelsinger warned in August that Intel needed “a bit of austerity” after the company posted a surprising $500 million loss. Even with the warning, however, the layoffs are sure to catch many off-guard.

  • Intel CEO Says It’s Time for ‘A Bit of Austerity’

    Intel CEO Says It’s Time for ‘A Bit of Austerity’

    Following a surprise $500 million loss on its latest quarterly report, Intel CEO Pat Gelsinger says the company needs “a bit of austerity.”

    Gelsinger has been working to turn Intel around and help the company achieve its former greatness. While the company has definitely looked stronger than it has in years, it hit a major speed bump on the road to recovery with its latest quarterly earnings, reporting a surprise loss of roughly $500 million. The company also announced it would raise prices on CPUs to combat inflation.

    Read more: Intel the Latest Company to Implement a Hiring Freeze

    In response, Gelsinger told Yahoo Finance Live’s Brian Sozzi that the company needs a bit of austerity to help it refocus.

    “This is a time for a bit of austerity,” Gelsinger said. “We’ve exited our Optane business, we sold the drone business, I’ve made six product exits since we’ve been here, and those are allowing us to put more focus on key areas.

    “A bit of austerity helps to drive a more accelerated pace to the transformation that we have underway.

    “But we also say, hey…this is the time to invest for the future.”

    Gelsinger did not elaborate on any additional austerity measures that may come into play.

  • Intel’s Rebound Hits Snags With $500 Million Loss and CPU Price Hikes

    Intel’s Rebound Hits Snags With $500 Million Loss and CPU Price Hikes

    Intel just posted an unexpected $500 million loss for the quarter and will raise CPU prices, raising questions about its turnaround.

    Once the undisputed king of the semiconductor industry, Intel has been working to regain its crown under CEO Pat Gelsinger. The company was once plagued with supply chain issues, quality control issues, and security problems that were unfixable. Gelsinger has worked hard to turn the company around, but the latest quarterly results show there’s still a lot to be done.

    According to PCWorld, Intel reported an unexpected loss of $500 million. While one reason given was lackluster PC demand, the second reason was more concerning: poor execution.

    “This was not our brightest hour in terms of execution,” Gelsinger said, speaking of a six-month delay to its “Sapphire Rapids” AI GPU.

    While some may be inclined to dismiss the issue as only impacting Sapphire Rapids, the fact remains that this quarter’s loss is more reminiscent of the Intel of the last few years, not the Intel Gelsinger is trying to bring about.

    To make matters worse, Intel announced it would be raising CPU prices.

    “[W]e are increasing pricing,” said CFO David Zinsner, according to PCWorld. “The pricing generally takes effect in the fourth quarter… You know we can absorb a lot of inflationary impact that others can’t. And so we were able to, you know, kind of go a bit longer… But at this point now that some of the price increases, inflationary increases, have turned out to be more permanent, where there’s a certain amount that we do need to pass on to the customers.”

    It’s unclear how much Intel will raise its prices, but the any price hike could further soften PC demand.

    Ultimately, only time will tell if this quarter’s results are a speed bump on Intel’s road to its former glory or if it’s a harbinger of things to come.

  • Intel the Latest Company to Implement a Hiring Freeze

    Intel the Latest Company to Implement a Hiring Freeze

    Intel joins a growing list of companies that have initiated a freeze on hiring over fears of an impending economic downturn.

    After two years of significant growth, the tech industry is starting to feel the pangs of a pullback. The global pandemic helped drive spending in the cloud, as well as personal computers, tablets, gaming consoles, and more. Supply chain constraints and the semiconductor shortage helped keep demand high and profits equally high. With a return to normal, not to mention soaring inflation, tech companies are beginning to feel the pressure and are responding with hiring freezes.

    “Increased focus and prioritization in our spending will help us weather macroeconomic uncertainty, execute on our strategy, and meet our commitments to customers, shareholders, and employees,” Intel said in a statement to Fortune.

    According to a memo Reuters gained access to, the company is freezing hiring for its client computing group, the division that creates desktop and laptop semiconductors.

    Intel is in the midst of working to turn its fortunes around. Since Pat Gelsinger became CEO, the company is trying to regain the ground it’s lost over the last few years. The company is focusing on closing the technological gap with AMD and TSMC, as well as working to increase production.

    It remains to be seen what impact the hiring freeze will have on the company’s plans, let alone the economic downturn in general.

  • Intel Moves Up 2025 Chip Tech a Full Six Months

    Intel Moves Up 2025 Chip Tech a Full Six Months

    Intel’s efforts to catch up in the semiconductor industry are ahead of schedule, by as much as a full six months.

    Intel has been working to catch up to its rivals after years of falling behind, both in innovation and manufacturing ability. Since bringing back Pat Gelsinger as CEO, the company has been going back to its roots, focusing on chip manufacturing. The company has a roadmap for its turnaround, with the goal of leapfrogging its rivals by 2025. According to CNET, the company now believes products based on its most advanced Intel 18A process will be available in late 2024, rather than early 2025.

    “Intel must have good confidence in the [schedule] pull in,” said Tirias analyst Kevin Krewell. “Otherwise, why announce it this early?”

    The company has been investing billions in new factories and foundries in an effort to increase its production, as well as spending heavily to upgrade its equipment to stay competitive. If Intel’s announcement is correct, it may finally be in a position to challenge TSMC and AMD, and perhaps reclaim its crown as the world’s leading semiconductor manufacturer.

  • Nvidia May Use Intel’s Foundry Services

    Nvidia May Use Intel’s Foundry Services

    Intel may score a major foundry customer in the form of Nvidia, one of the biggest semiconductor purchasers in the industry.

    Intel has been working overtime to reinvent itself under CEO Pat Gelsinger. Gelsinger is intent on bringing the company back to its roots as a chipmaker, first and foremost. In addition to its own chips, Intel is investing heavily in foundries aimed at manufacturing chips for other companies. Many of the biggest names in tech, including Apple, Qualcomm, Nvidia, and AMD, rely on outside companies to manufacture their semiconductors, making Intel one of the only companies that provides the entire range of services, from design to production.

    Nvidia may be interested in diversifying its manufacturing, instead of relying solely on TSMC and Samsung, according to Bloomberg.

    “We’re very open-minded to considering Intel,” Nvidia CEO Jensen Huang said. “Foundry discussions take a long time. It’s not just about desire. We’re not buying milk here.”

    At the same time, Huang cautioned that Intel had a challenging road ahead of it if it wants to successfully compete with the two Asian firms.

    “Being a foundry at the caliber of TSMC is not for the faint-hearted,” he added. “TSMC dances with the operations of 300 companies worldwide.”

    Gelsinger has made no secret of his desire to compete at that level, and all indications are that Intel is certainly headed in that direction. Nonetheless, given the company’s recent quality and supply chain issues in recent years, Intel will have to deliver on its promises if it wants to gain serious traction in the market.

  • Intel Announces Plans to Invest Up to $80 Billion in EU Chip-Making

    Intel Announces Plans to Invest Up to $80 Billion in EU Chip-Making

    Intel has announced its latest expansion effort, planning to spend up to $80 billion in chip-making in Europe.

    Intel has been expanding at a record pace, announcing new factories and foundries in multiple US locations. The company is now taking that expansion to Europe in an effort to help insulate the EU from chip shortages over the next decade.

    “Our planned investments are a major step both for Intel and for Europe,” said Pat Gelsinger, CEO of Intel. “The EU Chips Act will empower private companies and governments to work together to drastically advance Europe’s position in the semiconductor sector. This broad initiative will boost Europe’s R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe’s digital future for decades to come.”

    The expansion will begin with a $19 billion (17 billion euro) investment that will include a “semiconductor fab mega-site in Germany, to create a new R&D and design hub in France, and to invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain. “

    The initial investment will create 7,000 construction jobs and 3,000 permanent jobs at Intel. In addition, tens of thousands of jobs will be created from the supporting companies and industries that will spring up to support the new factories.

  • Intel Interested in Consortium to Purchase Arm

    Intel Interested in Consortium to Purchase Arm

    Intel CEO Pat Gelsinger has expressed his interest in joining a consortium aimed at purchasing Arm Holdings.

    Nvidia called off its attempt to purchase Arm in early February. The deal had met with backlash in both the US and the EU, with many concerned about a potential conflict of interest. Arm doesn’t manufacture any of its semiconductor designs, but does license them to whatever company is willing to pay. Many industry experts were concerned Nvidia may keeps Arm’s best designs for its own use, breaking with the company’s long-standing practice.

    Now that the Nvidia/Arm deal has fallen though, many are wondering what will become of Arm. While it has owned Arm since 2016, SoftBank had made it clear that it wanted to sell or spin off the semiconductor firm, likely to help offset the losses it has suffered with other investments.

    One possibility that was raised even before Nvidia’s ill-fated attempt to purchase Arm, was a consortium of companies purchasing the firm. According to Reuters, Gelsinger has left the door open to that possibility.

    “We’re not big users of Arm, but we do use Arm. We’re going to get to be bigger users of Arm as we make it part of our IFS (foundry business) agenda as well,” he told Reuters. “So if a consortium would emerge, we would probably be very favorable to participate in it in some manner.”

    Meanwhile, following the failed Nvidia deal, SoftBank has indicated it will take the semiconductor firm public, an outcome Gelsinger would also support.

  • Intel Confirms Ohio Semiconductor ‘Mega-Site’

    Intel Confirms Ohio Semiconductor ‘Mega-Site’

    Following reports Intel was looking to build two semiconductor plant in Ohio, the company has confirmed the news, calling it a “mega-site.”

    Intel is working to reassert its dominance in the semiconductor industry, with CEO Pat Gelsinger even saying AMD is firmly in the company’s “rearview mirror.” As part of its effort, the company has been expanding its manufacturing presence, building a pair of factories in Arizona for $20 billion, and now planning to do the same in Ohio.

    Intel is planning to build two semiconductor factories on roughly 1,000 acres in Licking County, just outside of Columbus. The company says the “mega-site” is large enough to support a total of eight such factories, as well as the various partner and support operations necessary for manufacturing.

    Intel will initially be investing $20 billion in the two factories, with an additional $100 million dedicated to educational institutions, in an effort to help develop local talent and research. All told, the initial two factories will create 3,000 Intel jobs, in addition to some 7,000 construction jobs, in what is billed as “the largest single private-sector investment in Ohio history.”

    Construction will begin in late 2022, with the factories beginning production in 2025.

    “Today’s investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership,” said Pat Gelsinger, CEO of Intel. “Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel’s domestic lab-to-fab pipeline and strengthen Ohio’s leadership in research and high tech.”

  • Intel’s CEO: ‘AMD In the Rearview Mirror…Never Again In the Windshield’

    Intel’s CEO: ‘AMD In the Rearview Mirror…Never Again In the Windshield’

    Intel’s CEO Pat Gelsinger released a video on LinkedIn welcoming the new year, and took the opportunity to take a major swipe at rival AMD.

    Intel has had a rough few years, with the company losing its once undisputed dominance in the semiconductor industry. TSMC is now the world’s largest chipmaker, and AMD has released a steady stream of competitive chips — in the form of its Ryzen line — that have challenged Intel across its various markets. The company has seen some high-profile defections among its customers, thanks to the performance and efficiency of AMD’s latest designs.

    According to Gelsinger, however, those days are in the past, thanks to Intel’s Alder Lake line of chips.

    “Alder Lake, all of sudden, boom! We are back in the game! AMD in the rearview mirror in clients, and never again will they be in the windshield,” Gelsinger said.

    A number of the commenters who responded to Gelsinger’s post were quick to point out that Intel is still technologically behind AMD. While Intel has barely made the move to 10nm processors, AMD is already on 7nm, and will soon move to 4nm.

    Benjamin Banks, a self-processed “Linux nerd,” wrote:

    Intel launched a 10nm processor in November 2021, 364 days after AMD launched their 7nm chip, and somehow you claim superiority? Intel’s arrogance is staggering. AMD are about to launch a 4nm chip, while still Intel lags behind in what can only be described as a legacy manufacturing process.

    Patryk Jarosz, Information Technology Technical Specialist at IKEA, voiced similar sentiments:

    It also speaks volumes how they claim superiority with much newer product… Lets see how this stands up to whatever AMD will bring out in few months, shall we? 

    There’s no doubt Gelsinger is in the process of turning Intel around and helping it get back on track. As many of the comments point out, however, the company still has a long way to go before AMD is truly in the rearview — if that scenario is even still possible.

  • Intel Building $20 Billion Semiconductor Plant in Columbus, Ohio

    Intel Building $20 Billion Semiconductor Plant in Columbus, Ohio

    Intel is continuing its aggressive expansion plans, selecting the Greater Columbus, Ohio area for its next $20 billion plant.

    Once the undisputed king of the semiconductor industry, Intel has been struggling against the likes of TSMC and AMD. The company’s current CEO, Pat Gelsinger, is determined to bring the company back to its engineering roots. As part of that shift, the company has been aggressively expanding its manufacturing capabilities, recently investing $20 billion to build two plants in Arizona.

    The company has now chosen Greater Columbus as the site for its next factory, according to The Columbus Dispatch. The Dispatch’ssources said Intel will invest $20 billion in the project, centered on a Licking County site, and the new factory will employ some $3,000 workers.

    In addition to the 3,000 workers Intel will employ, there could be hundreds, or even thousands of additional workers in the supporting companies that will no doubt spring up around the new factory.

  • Intel and Italy Move Forward With Talks for $9 Billion Chip Factory

    Intel and Italy Move Forward With Talks for $9 Billion Chip Factory

    Intel and Italy are moving forward with negotiations to build a $9 billion chip factory.

    Under CEO Pat Gelsinger, Intel has been working to get back to the top of the chip industry. As part of those plans, the company has been investing heavily in new factories. The company hopes to not only step up its own internal production, but also wants to serve as the foundry for other companies, such as Apple, Amazon, and Qualcomm.

    Intel is already spending $20 billion on two new factories in Arizonabut, according to Reuters, the company is looking to build a $9 billion factory in Italy. Reports indicate the talks are intensifying, paving the way for Italy to receiving 10% of the 80 billion euros Intel plans to invest in its European production.

    The move will also help Intel, and the semiconductor industry in general, to lessen its dependence on manufacturing in Asia, potentially helping to insulate the supply chain from another pandemic-type disruption.

  • TSMC Founder Doesn’t Think Gelsinger Has Enough Time to Save Intel

    TSMC Founder Doesn’t Think Gelsinger Has Enough Time to Save Intel

    Update 12-15-21: Intel changed its rules for executive retirement, as of March 2021, allowing corporate officers to serve past the age of 65. As a result, Chang’s concerns cited in this article are no longer a factor.

    Intel CEO Pat Gelsinger is going full speed ahead in his efforts to turn Intel around, but TSMC founder Morris Chang thinks he’ll run out of time.

    Like many companies, Intel has a mandatory retirement age for its CEOs, requiring them to step down at 65. Gelsinger replaced Bob Swan as CEO in early 2021, and is currently 60 years-old (he’ll turn 61 in March).

    In a report by UDN, Chang made his comments at the “Cherish Taiwan’s Advantages in Semiconductor Wafer Manufacturing,” saying ‘he does not believe that he [Gelsinger] can bring Intel back to the top.’

    There is always the possibility that Intel could change its retirement age, allowing Gelsinger to continue as CEO past 65. In order for that to happen, however, Gelsinger would need to prove that he can successfully turn the company around.

    Only time will tell whether Chang is right.

  • Intel Uses Dishonest Tactics in Benchmark Comparing i9 to Ryzen 9

    Intel Uses Dishonest Tactics in Benchmark Comparing i9 to Ryzen 9

    Intel has been called out for using underhanded tactics in its latest benchmarks, which demonstrate the i9 12900K besting the Ryzen 9 5950X.

    Once the undisputed leader in the semiconductor market, Intel has seen its lead eroded by its own missteps, combined with intense competition from AMD and Arm-based processors. CEO Pat Gelsinger is intent on returning the company to its former glory, and the new 12th Gen Alder Lake is a big part of those plans. The company has been touting its performance, especially compared to AMD.

    There’s only one problem: Intel stacked the deck in a big way when benchmarking the chip against AMD’s Ryzen 9.

    According to Notebookcheck Intel allowed its i9 processors to consume 241 W at PL1 while constraining the Ryzen to a mere 105 W, giving the i9 more than twice the power.

    Even worse, Intel conducted the benchmark using an older version of Windows that was known to negatively impact Ryzen performance. Microsoft and AMD have released fixes for the issue, but the benchmark doesn’t reflect that, leading to yet another major performance advantage for the i9.

    Gelsinger has made it clear he wants to rebuild the company’s credibility. Perhaps a good place to start would be honest benchmarking.

  • Intel CEO: Semiconductor Shortage Won’t End Until 2023

    Intel CEO: Semiconductor Shortage Won’t End Until 2023

    Intel CEO Pat Gelsinger had bad news for everyone hoping the semiconductor shortage would end soon, saying it won’t happened until 2023.

    Industries the world over are struggling with one of the worst semiconductor shortages in history. Early lockdowns and COVID outbreaks hurt production at a time when unprecedented numbers of people were transitioning to remote or hybrid work. Between a contained supply and an uptick in demand for laptops, tablets and gaming consoles, the industry has yet to recover.

    Unfortunately, the shortage has spread beyond just the tech industry. Automakers have been struggling to maintain production as a result of not having enough chips to build out their vehicles.

    In an interview with CNBC, Gelsinger said the industry is currently in the worst phase of the shortage, a shortage that will last until 2023.

    “We’re in the worst of it now, every quarter next year we’ll get incrementally better, but they’re not going to have supply-demand balance until 2023,” Gelsinger said.

  • Intel CEO: Previous CEOs Lost Focus on What Made Company Successful

    Intel CEO: Previous CEOs Lost Focus on What Made Company Successful

    Intel CEO Pat Gelsinger isn’t pulling any punches about why Intel has struggled recently, blaming his predecessors for leading the company the wrong way.

    Intel was once the undisputed leader of the semiconductor industry. In recent years, however, it has largely been eclipsed by TSMC, with even long-time rival AMD beating the company’s chips in performance and efficiency. Intel has also struggled with manufacturing issues, unfixable security flaws and more.

    In an interview with Axios, Gelsinger blamed previous leaders for losing the “maniacal” focus on manufacturing that helped make Intel such a powerhouse. The CEO believes much of that was due to previous CEOs not being engineers, as he is.

    Gelsinger wants to turn the company’s manufacturing around so much that if a client needs a million chips on Monday, Intel will have them on Sunday night — a far cry from the company’s recent inability to deliver enough chips to keep customers happy.

  • Brexit May Have Cost the UK an Intel Factory

    Brexit May Have Cost the UK an Intel Factory

    Intel has ruled out the possibility of building a factory in the UK, thanks to Brexit.

    Chipmakers and governments are looking to expand semiconductor production outside of Asia. The COVID-19 pandemic demonstrated the danger of having the bulk of the world’s chip supplies coming from a single region. As early lockdowns impacted production, companies around the world struggled to meet demand for laptops, tablets and phones. Multiple industries are still dealing with a semiconductor shortage that had its start in those initial weeks.

    Multiple companies, including Intel, have been opening new foundries outside of Asia in an effort to better insulate production. In addition to two new foundries in the US, Intel has been looking to open a new factory in Europe.

    CEO Pat Gelsinger ruled out any chance of a UK factory, attributing the decision to Brexit, according to BBC.

    The “UK would have been a site that we would have considered,” Gelsinger said, before adding, “Post-Brexit… we’re looking at EU countries and getting support from the EU”.

    Economists and experts warned that Brexit could cost the UK business. Intel is one of the most high-profile examples of that prediction coming true.

  • Intel Giving Employees $250 to Get COVID Vaccine

    Intel Giving Employees $250 to Get COVID Vaccine

    Intel is ramping up its efforts to encourage its employees to get the COVID vaccine, offering a $250 incentive.

    Companies are increasingly rolling out vaccine mandates for their employees as the Delta variant continues to surge around the world. While Intel has not yet gone that route, it is trying to encourage as many as possible to get vaccinated, sweetening the deal with $250.

    Brahm Resnik, a reporter in Phoenix, Arizona, tweeted a copy of the email CEO Pat Gelsinger sent to employees.

    “I am urging you to get a COVID-19 vaccination when it is available in your area,” Gelsinger wrote. “Provided it is possible for you, this is an act that will keep you, your family, your colleagues, and your community safer. I’m a data guy and the data shows that vaccination is a critical element in ending this pandemic. The risk of infection among vaccinated individuals is reduced about three-fold, and the risk of severe disease or death is reduced by ten-fold or greater.” 

    The company is offering a $250 “thank you” to any employee who gets vaccinated, or has already done so. In addition, Intel will provide hourly employees a geo-adjusted $100 food voucher.

    In a recent address, President Biden urged companies to offer incentives of $100 to motivate employees to get vaccinated. Intel is obviously going above and beyond in its efforts.