US manufacturer Intel: Missing components also burden the chip company

Status: 10/22/2021 11:06 am

Like so many in the industry, the semiconductor company Intel is feeling the effects of the current lack of chips. Because other components are missing, computer manufacturers are ordering fewer from the US company.

By Marcus Schuler, ARD Studio San Francisco

Intel disappointed in the past quarter and missed sales expectations. For the past third quarter, the US company announced sales of 18.1 billion dollars on Thursday after the stock market closed, an increase of five percent. However, analysts had expected 18.24 billion.

For the current quarter, Intel now expects sales of 18.3 billion dollars – a little more than analysts expected. Net income was $ 7 billion for the third quarter, up 54 percent from the same period last year.

Sales of notebook chips collapsed

Intel is also feeling the effects of the lack of chips. Because the manufacturers of computers lack components – Ethernet cards, for example, to connect computers to networks or power controllers for so-called mainboards. This shortage is now having an impact on Intel because PC manufacturers are ordering fewer processors and CPUs from the Silicon Valley company.

Intel boss Pat Gelsinger said that sales of chips for notebooks in particular had slumped by a good ten percent. Intel is also affected in the lucrative server business. The reason is the tough crackdown on video games by the Chinese authorities. These have been limited in time for children in China for a few months now. Therefore, fewer game servers are being built that are located in data centers and for which Intel supplies the CPUs.

Decision on German factory by the end of the year?

The US chip company announced that it will work with automakers who are particularly affected by the shortage of semiconductors. To this end, the production capacities in Ireland are to be expanded. The big master plan remains in place: Intel wants to get even more involved in contract manufacturing and thus not leave this market to companies like Samsung or TSMC in Asia.

However, Intel has to expand its capacities for this. It could possibly build a multi-billion dollar factory in Germany. A decision should be made this year.

Quarterly figures: chip manufacturer Intel disappointed.

Marcus Schuler, ARD San ​​Francisco, 22.10.2021 · 09:25

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