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Tag: Intel

  • 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.”

  • AMD Continues to Chip Away at Intel’s Server Dominance

    AMD Continues to Chip Away at Intel’s Server Dominance

    AMD is continuing to make inroad against Intel in the server market, chipping away (pun intended) at the latter’s lead.

    Intel was once the undisputed king of the semiconductor market. While that was true across the entire PC industry, it was especially true in the server market, where the company’s market share was 98% as recently as five years ago. According to Mercury Research (via Network World), as of Q122, AMD’s server market share is now 11.6%, dropping Intel’s to 88.4%.

    AMD has its Epyc line of processors to thank for the success it’s enjoying.

    “It’s been a long, gradual increase. If you look at the data set now, AMD has completed their third consecutive year of having on-quarter gains in share,” said Dean McCarron, president of Mercury Research. “The main driver there is that AMD has its Epyc processors … and each generation has been a little bit more successful than the prior one.”

    See also: Linus Torvolds Switches to AMD, Slams Intel

    AMD’s reputation for consistently delivering quality products is also helping the company gain new business.

    “This isn’t the first time [AMD]’s had success in the market, they had success more than a decade ago, and now they’re getting back in,” McCarron added. “The key here is that they’ve established a pattern of delivery on product reliability.”

    McCarron’s comments confirm the issues Intel has had in recent years. Dell, one of Intel’s most loyal partners, had to look to AMD in 2019 as a result of Intel’s supply issues. Similarly, Cloudflare pivoted away from Intel in late 2021 because AMD’s Epyc processors were much more energy efficient. Google Cloud also moved to AMD, thanks to the performance gains it offered over Intel.

    AMD’s performance has also helped it achieve the highest share of the x86 processor market in its history, according to TechSpot. As of Q122, AMD has 27.7% of the overall market, and 18.3% of the x86 desktop market.

    Under CEO Pat Gelsinger, Intel is determined to turn the tide back in its favor, with Gelsinger even going so far as to say “AMD [is] in the rearview mirror.”

    Unfortunately for Gelsinger, the facts don’t support that claim just yet.

  • 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 Unveils FakeCatcher, Real-Time Deepfake Detector

    Intel Unveils FakeCatcher, Real-Time Deepfake Detector

    Intel has unveiled FakeCatcher, a real-time deepfake detector that delivers 96% accuracy in milliseconds.

    Deepfakes are AI-generated images and videos designed to make it look as if someone is saying or doing something they are not. The technology is so advanced that it can be almost impossible to readily identify them. As a result, the potential implications are staggering. The technology can be used to discredit public figures, influence elections, ruin business leaders, create revenge porn, and far more.

    “Deepfake videos are everywhere now,” says Ilke Demir, senior staff research scientist in Intel Labs. “You have probably already seen them; videos of celebrities doing or saying things they never actually did.”

    FakeCatcher was “designed by Demir in collaboration with Umur Ciftci from the State University of New York at Binghamton.” The solution relies heavily on AI, as well as algorithms to detect faces and landmarks

    Most deep learning-based detectors look at raw data to try to find signs of inauthenticity and identify what is wrong with a video. In contrast, FakeCatcher looks for authentic clues in real videos, by assessing what makes us human— subtle “blood flow” in the pixels of a video. When our hearts pump blood, our veins change color. These blood flow signals are collected from all over the face and algorithms translate these signals into spatiotemporal maps. Then, using deep learning, we can instantly detect whether a video is real or fake.  

    Intel’s FakeCatcher is an important tool in the fight against deepfakes, and will hopefully help debunk them and mitigate the damage they can do.

  • MediaTek Opens the Door to a Move Away From Taiwan

    MediaTek Opens the Door to a Move Away From Taiwan

    MediaTek, one of the world’s leading smartphone chipmakers, is open to the possibility of moving away from Taiwan, at least ‘incrementally.’

    MediaTek is a Taiwanese firm that designs semiconductors for some of the world’s most popular smartphones. The company relies heavily on TSMC to manufacture the chips, making its supply chain heavily dependent on its home country of Taiwan.

    According to Reuters, the increasing tensions between the US and China are forcing MediaTek and other companies to consider diversifying their supply chains.

    “Very large (equipment manufacturers) will require their chip suppliers to have multiple sources, like from Taiwan and from U.S., or from Germany or from Europe,” said Rick Tsai, MediaTek Inc Chief Executive. “I think in those cases, we will have to find multiple sources for the same chip if the business warrants that.”

    While TSMC may manufacture MediaTek’s most advanced chips, the company does rely on others for its less advanced designs. MediaTek has struck a deal with Intel to expand the use of its foundries and plans to make use of TSMC’s Arizona foundry once it’s operational. At the same time, Tsai warned TSMC’s US production would not be able to fully meet demand and replace the role Taiwan plays.

    “But is that going to be enough? No. Not by far,” he said.

  • 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 and Google Cloud Collaborate On New Data Center Semiconductor

    Intel and Google Cloud Collaborate On New Data Center Semiconductor

    Intel and Google Cloud have collaborated on a new chip designed for the data center, the E2000.

    Intel has been working to expand its foundry services and regain its crown as the world’s dominant chipmaker. Data centers have traditionally been the company’s impregnable stronghold, but AMD and Arm have been making inroads. Intel has partnered with Google Cloud to create a new chip designed specifically for data centers.

    The C3 machine series features 4th Gen Intel® Xeon® Scalable processors in private preview and debuts the Intel® infrastructure processing unit E2000, co-designed by Google and Intel.

    Google has deployed the C3 machines and is poised to see significant performance increases.

    Through its unique architectural approach, C3 machine instances deliver strong performance gains of up to 20% over previous generation C2 instances, enabling high performance computing and data-intensive workloads. Google Cloud C3 machines also pave the way for a future where infrastructure processing units (IPUs) are integrated into data centers, accelerating cloud infrastructures and maximizing performance.

    Intel touted the first-of-its-kind nature of the new chips:

    “We are pleased to have codesigned the first ASIC infrastructure processing unit with Google Cloud, which has now launched in the new C3 machine series. A first of its kind in any public cloud, C3 VMs will run workloads on 4th Gen Intel Xeon Scalable processors while they free up programmable packetprocessing to the IPUs securely at line rates of 200 gigabits per second,” says Nick McKeown, Intel senior vice president, Intel Fellow and general manager of Network and Edge Group. “This Intel and Google collaboration enables customers through infrastructure that is more secure, flexible and performant.”

  • Linux 5.19.12 Kernel May Cause Damage to Some Displays

    Linux 5.19.12 Kernel May Cause Damage to Some Displays

    Linux users are being advised to skip kernel 5.19.12 due to a major bug impacting Intel machines.

    The Linux 5.19.12 kernel appears to have a bug in it that can cause the LCD screens on Intel laptops to blink and flash, according to Phoronix. The issue is more than cosmetic, however, and can actually cause damage to the display as a result of “bogus panel power sequencing delays.”

    Intel Linux kernel engineer Ville Syrjäl noted the issue in the kernel mailing list:

    After looking at some logs we do end up with potentially bogus panel power sequencing delays, which may harm the LCD panel.

    Greg, I recommend immediate revert of this stuff, and new stable release ASAP. Plus a recommendation that no one using laptops with Intel GPUs run 5.19.12.

    According to Phoronix, Greg Kroah-Hartman has already released 5.19.13, which fixes the issue. He did note, however, that users who were not impacted do not need to upgrade.

  • Intel Wants Apple Back As a Customer

    Intel Wants Apple Back As a Customer

    Intel has made it clear that it wants Apple back as a customer, despite Apple moving full speed ahead with its own chips.

    Apple was one of Intel’s best customers for years but abandoned the platform in favor of its own M-series chips. Based on the same designs that have powered the iPhone and iPad for years, the M-series has proven to be a powerful combination of performance and industry-leading efficiency.

    It seems that Intel hasn’t given up hope of regaining Apple as a customer if comments by Michelle Johnston Holthaus, Intel’s EVP of the Client Computing Group, are any indication. The comments were reported on Twitter by Dr. Ian Cutress.

    While it’s highly unlikely Apple would ever return to traditional x86 architecture, like Intel or AMD’s chips, there is always the possibility it could use Intel’s foundry services to manufacture its own chips.

  • Nvidia, Arm, and Intel Collaborate on AI Standard

    Nvidia, Arm, and Intel Collaborate on AI Standard

    Three of the biggest names in the semiconductor industry are collaborating on a new standard for AI interchange format.

    AI is considered one of the biggest technological advancements of the modern era. In order to reach its potential, however, companies and researchers need to have common standards for hardware and software interoperability.

    Nvidia, Arm, and Intel have authored the FP8 Formats for Deep Learning white paper, proposing an “8-bit floating point (FP8) specification.” The specification will help optimize memory usage, thereby accelerating AI development. The specification works with AI training, as well as inference, and is natively supported in Nvidia’s Hopper architecture.

    “NVIDIA, Arm, and Intel have published this specification in an open, license-free format to encourage broad industry adoption,” writes Shar Narasimhan, a director of product marketing. “They will also submit this proposal to IEEE.

    “By adopting an interchangeable format that maintains accuracy, AI models will operate consistently and performantly across all hardware platforms, and help advance the state of the art of AI. “

  • Intel Signs $30 Billion Financing Deal With Brookfield to Expand Chip Factories

    Intel Signs $30 Billion Financing Deal With Brookfield to Expand Chip Factories

    Intel is pulling an industry first, partnering with Brookfield Asset Management Inc to help fund its chip factory expansion.

    Intel is working on expanding its US-based chip production as lawmakers look to help the US become less dependent on foreign semiconductor manufacturing. In an unprecedented move, Intel is partnering with Brookfield to help fund its $30 billion expansion plans, according to The Wall Street Journal.

    Intel will fund 51% of the expansion, with Brookfield funding the rest. Intel and Brookfield will split ownership of the financing entity that will own the factories, as well as the resulting profits, although Intel will retain majority ownership.

    While the financing arrangement is new for the semiconductor industry, it’s a relatively common practice in others, such as telecommunications and energy. Given the challenges Intel is facing, not the least of which is the surprise $500 million loss the company recently reported, the deal made sense.

    “We have gotten behind, and that requires a fairly aggressive investment cycle over the next few years, which is not a place Intel typically finds itself,” said Intel Chief Financial Officer David Zinsner.

  • US Chip Deal Would Stop Companies From Expanding Advanced Chip Production in China

    US Chip Deal Would Stop Companies From Expanding Advanced Chip Production in China

    The US passed a major piece of legislation aimed at revitalizing US semiconductor manufacturing, but it also does much to inhibit China’s chip industry.

    The semiconductor bill reserves approximately $52 billion to help companies build factories and foundries in the US. As Bloomberg points out, however, a major clause of the bill would preclude any company that accepts the funds from expanding advanced chip production in China.

    The terms of the bill would prohibit companies from increasing production of chips that are more advanced than 28-nanometer designs in China, or other countries of concern, such as Russia. The restriction is in effect for ten years. Companies would still be able to get exceptions to produce 28-nanometer chips for China and other countries of concern.

    Compared to modern chips, 28-nanometer designs are several generations old, first produced at TSMC in 2011. Nonetheless, the chips are still used in some smartphones and automobiles.

    It remains to be seen what the long-term impact would be on China’s semiconductor industry, but the move is sure to exacerbate already tense relations between China and the US. The restrictions could also limit TSMC, Intel, and other companies growth since China is currently the world’s largest semiconductor market.

    Ultimately, some chipmakers may decide the additional funding isn’t worth the long-term cost.

  • 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.

  • Semiconductor Bill Passes the House

    Semiconductor Bill Passes the House

    The $280 billion semiconductor bill, aimed at helping revitalize the US chip industry, has overcome its final hurdle, passing in the US House.

    The bill, formerly known as the CHIPS and Science Act, has been widely supported by Intel and other tech companies. The bill includes more than $52 billion to assist semiconductor makers’ efforts to establish foundries and factories in the US.

    The bill was seen as a major factor in some companies’ decision-making process. Samsung is rumored to be considering a $200 billion investment in 11 factories in Texas, but it’s believed the company wanted to wait and see if the bill passed. Other companies were known to be holding off on their decision-making process until the bill’s future was certain.

    With the bill now passing the House, it will go to President Biden to be signed into law.

    “This bill includes important guardrails to ensure that companies receiving tax payer dollars invest in America and that union workers are building new manufacturing plants across the country,” Biden said in a statement.

    “I look forward to signing this bill into law and continuing to grow our economy from the bottom up and middle out for working families all across the country.”

  • 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 Scores MediaTek As Foundry Customer

    Intel Scores MediaTek As Foundry Customer

    Intel has scored a major victory, securing Taiwan’s MediaTek as a customer for its foundry services.

    Intel has been working to revitalize its semiconductor business, and providing foundry services to other companies has been a major part of that revitalization. According to Reuters, the company has secured a contract to produce chips for MediaTek, one of the leading semiconductor design firms whose designs are used in a wide range of mobile devices.

    “That’s a pretty big deal for us to engage a customer from Taiwan and them betting on us to grow and try this. And so this is a major anchor customer win,” Randhir Thakur, president of Intel Foundry Services, told Reuters.

    The move is a testament to Intel’s success in establishing its foundry business, especially since MediaTek has a carefully developed reputation for designing some of the highest-quality chips in the business. Some Qualcomm and Samsung chips — both of which were manufactured by Samsung — have struggled with heat issues.

    Read more: Intel Moves Up 2025 Chip Tech a Full Six Months

    In contrast, MediaTek has relied on TSMC, a company whose manufacturing processes are considered more advanced than those of other companies. As a result, MediaTek has not been plagued with the same heat issues as its rivals.

    The fact that the company is willing to invest in Intel’s foundry services is a huge vote of confidence in the latter’s abilities.

    “When you go into a foundry, you’re putting at risk about two years of work,” said TechInsights’ chip economist Dan Hutcheson. “If something happens and the foundry can’t pull it off, you’ve lost that design window in that market window.”

    While the contract is a big win for Intel, MediaTek made clear it will continue with a multi-vendor approach.

    “MediaTek has always adopted a multi-sourcing strategy,” MediaTek said in a statement. “In addition to maintaining close partnership with TSMC in advanced process nodes, this collaboration will enhance MediaTek’s supply for mature process nodes.”

  • TSMC May Edge Out Intel’s Quarterly Revenue for the First Time

    TSMC May Edge Out Intel’s Quarterly Revenue for the First Time

    TSMC’s rise to the world’s top semiconductor maker continues unabated, with the company about to hit a major milestone: beating Intel’s quarterly revenue.

    Intel was once the undisputed king of the semiconductor market, but it has struggled in recent years with both its technological advancement and its production abilities. Meanwhile, TSMC has become the primary manufacturer of the mobile chips that have come to dominate the industry. According to The Register, TSMC is now set to report higher quarterly revenue than Intel for the first time ever.

    TSMC’s revenue is expected to jump 43% quarter-over-quarter, coming in at 18.1billion,whileIntel′srevenueisexpectedtohit17.98 billion.

    See also: TSMC Set to Raise Prices

    TSMC’s growth has been driven by its industry-leading foundries that pump out chips for Apple, AMD, Qualcomm, Nvidia, Intel, and others. With the rise of the smartphone, TSMC quickly established itself as the leading manufacturing firm for such chips, continually driving technological advancement and delivering the volume its customers need.

    Intel has clearly been making moves to regain its position and compete with TSMC’s foundry services. The company has been working to advance its tech, even speeding up deadlines it initially set since Pat Gelsinger took over as CEO. The company has also been hiring top semiconductor talent, building foundries and plants, as well as investing in chip-making production in various regions.

  • Apple’s 5G Modem Efforts ‘May Have Failed’ and Qualcomm Benefits

    Apple’s 5G Modem Efforts ‘May Have Failed’ and Qualcomm Benefits

    Apple may be dealing with an uncharacteristic failure, with its 5G modem development efforts not going according to plans.

    Apple analyst Ming-Chi Kuo tweeted the news early Tuesday afternoon. Kuo is well-respected for his track record of being right far more often than not in his Apple predictions.

    Apple purchased Intel’s 5G modem business after the latter failed to make significant headway against Qualcomm’s market dominance. At the time, it was believed that Apple was hoping to use the purchase to create its own modems for the 2022 iPhones. When that didn’t happen, some believed Apple would make the change in the 2023 lineup.

    Kuo believes Qualcomm is now on target to exceed revenue expectations for the second half of 2023 and the first half of 2024, thanks to being the iPhone’s sole modem supplier.

    While the company still needs to diversify beyond its reliance on Apple, Kuo says, “by the time Apple succeeds and can replace Qualcomm, Qualcomm’s other new businesses should have grown enough to significantly offset the negative impacts caused by the order loss of iPhone 5G chips.”

  • Intel Wants the EU to Pay It $624 Million in Interest Over Overturned Fine

    Intel Wants the EU to Pay It $624 Million in Interest Over Overturned Fine

    Intel may have won its case to overturn a €1 billion fine antitrust fine in the EU, but the chipmaker is now pressing for interest to be paid.

    In January 2022, the EU’s second-highest court overturned a €1 billion fine imposed on Intel in 2009. The EU Commission accused Intel of trying to use rebates and other incentives to block manufacturers from using chips from rival AMD. Intel was ordered to pay the fine before it was reversed 12 years later.

    Intel now wants the Commission to pay it $624 million in interest, according to Reuters. The EU Court did address interest last year, saying the Commission would need to pay default interest for fines that have been overturned and reimbursed. What’s more, the court said late payments on interest would incur further interest.

    It’s been a rough few days or the EU’s antitrust regulators. Last week the same court overturned a $1 billion fine against Qualcomm, criticizing regulators’ handling of the case.

    As we wrote in our coverage of that story, Competition Commissioner Margrethe Vestager will likely need to be more careful in how she and her regulators go after tech companies and build cases against them.

  • EU Court Overturns Qualcomm’s $1 Billion Fine

    EU Court Overturns Qualcomm’s $1 Billion Fine

    Qualcomm scored a major win, with an EU court striking down a $1 billion fine against it and criticizing the EU Commission’s original ruling.

    Lead by Competition Commissioner Margrethe Vestager, EU antitrust regulators fined Qualcomm $1 billion, alleging the company paid Apple billions of dollars in an effort to shut Intel out of the mobile chip market and ensure the Cupertino company used its chips exclusively. According to Reuters, not only did the EU’s second-highest court, the General Court, overturn the fine, it also criticized how Vestager and the Commission handled their case.

    “A number of procedural irregularities affected Qualcomm’s rights of defence and invalidate the Commission’s analysis of the conduct alleged against Qualcomm,” judges said.

    “The Commission did not provide an analysis which makes it possible to support the findings that the payments concerned had actually reduced Apple’s incentives to switch to Qualcomm’s competitors in order to obtain supplies of LTE chipsets for certain iPad models to be launched in 2014 and 2015,” they said.

    The Commission could still appeal the decision to the EU’s highest court, the EU Court of Justice, but no decision has been made.

    This isn’t the first setback for Vestager. In July 2020, EU courts upheld Apple’s Ireland tax deal, something Vestager had tried to put a stop to. Similarly, as Reuters points out, in January a court overturned a 1.06 billion euro fine against Intel for trying to squeeze AMD out of the market.

    Vestager has made a name for herself as a tough, no-nonsense regulator of Big Tech. Given these setbacks, however, she may have to be more cautious and thorough in how she pursues future cases.