Whereas Intel recorded document income for the fourth quarter of 2021, Intel chief govt Pat Gelsinger mentioned that chip shortages will persist all through 2022 and into subsequent 12 months.
“Wanting throughout the trade, 2021 was dominated by two recurring themes, unprecedented demand, and ecosystem provide constraints,” Gelsinger mentioned.
Intel reported document income for the quarter—$20.5 billion, up 3 % from a 12 months in the past, on $4.6 billion in income. However the firm’s Consumer Computing Group (CCG) reported gross sales that fell 7 % to $10.1 billion. Provide constraints hit Intel’s PC prospects, reducing their potential to ship PCs. Pocket book income fell 16 %, although desktop income helped offset it, rising 19 %.
“This [the constraints] was most acutely felt within the shopper market, notably in notebooks,” Gelsinger advised analysts. “However constraints have broadly impacted different markets together with automotive, the Web of Issues and the information heart. As we predicted, these ecosystem constraints are anticipated to persist by 2022 and into 2023. With incremental enhancements over this era, the trade will proceed to see challenges in quite a lot of areas, together with specialty and total foundries shortages, substrates, in addition to third social gathering silica.”
Gelsinger additionally named energy controllers, show LED controllers, and totally different element items as different areas the place shortages are a priority.
With that mentioned, Gelsinger mentioned Intel is effectively positioned to navigate the market, provided that the corporate has at all times emphasised constructing chips from its personal fabs. The corporate mentioned this week that it plans to construct a brand new megafab advanced in Ohio, although the plan is to construct the construction, or “shells,” after which add manufacturing gear later. In accordance with Gelsinger, the corporate’s manufacturing roadmap that it outlined final 12 months continues to be on observe.
Gelsinger mentioned Intel shipped 100 million models of its Eleventh-gen Tiger Lake chips, and he mentioned that its Twelfth-gen Alder Lake chips at the moment are delivery to 140 prospects in 30 nations. Later this 12 months Intel will ship Raptor Lake, a chip that has already efficiently booted inside Intel’s labs. Intel’s George Davis, the previous chief monetary officer who’s now serving as an “govt adviser,” mentioned that Intel was seeing a shift in demand from the buyer and entry-level PC “into what we name the Large Core pocket book and our desktop…which actually dropped off, and now we’re seeing form of a powerful restoration there.”
The inspiration of Intel’s success was its Information Heart Group, which homes its Xeon processors. Intel’s Gelsinger mentioned that the variety of Xeon chips Intel shipped in December outsold its whole competitors for the quarter. Intel’s DCG income was $7.3 billion, up 20 % from a 12 months in the past. Intel’s Web of Issues group recorded $1.1 billion in gross sales, and Mobileye, which Intel plans to partially spin off, notched $356 million in gross sales. Intel’s Gelsinger left the door open to different spinoffs, as effectively.
That’s noteworthy, provided that going ahead, Intel mentioned it plans to restructure itself: Intel’s Arc graphics enterprise, which is able to formally launch later this quarter, will probably be a separate unit.
As PCWorld’s senior editor, Mark focuses on Microsoft information and chip expertise, amongst different beats. He has previously written for PCMag, BYTE, Slashdot, eWEEK, and ReadWrite.