- The stock price of Intel Corporation (NASDAQ: INTC) has increased by over 3% pre-market. This is why it happened.
The stock price of Intel Corporation (NASDAQ: INTC) has increased by over 3% pre-market. Investors appear to be responding to Intel’s new CEO Pat Gelsinger announcing a multitude of changes at the company.
In Intel’s “Engineering the Future,” Gelsinger had announced a plan to outsource more chip production to third-party companies. And there will be a $20 billion investment made into two new fabs in Arizona. Plus Intel will be launching a branch of the company called Intel Foundry Services — which is going to produce chips for other companies.
These initiatives are being coined “IDM 2.0.” And IDM 2.0 has three main components including in-house manufacturing, an expanded use of external foundries like TSMC and Samsung, and Intel Foundry Services. Intel Foundry Services will operate as a standalone foundry business unit led by Randhir Thakur and it will oversee the development of x86, Arm, and RISC-V core chips for clients.
“We are setting a course for a new era of innovation and product leadership at Intel. Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in.”
“We are excited to be partnering with the state of Arizona and the Biden administration on incentives that spur this type of domestic investment.” Intel expects to accelerate capital investments beyond Arizona, and Gelsinger said he plans to announce the next phase of capacity expansions in the U.S., Europe and other global locations within the year.
— Pat Gelsinger
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