Intel says that it plans to reduce its reliance on third-party manufacturers soon and that the majority of its 2023 product lineup will, instead, be done internally. The statement comes after Pat Gelsinger’s, Intel’s new CEO, failure to embrace outsourcing saw his company’s shares take a dive of 4.7%.
Intel’s meandering isn’t new; the semiconductor has been mulling over outsourcing the manufacturing of some of its products since July last year. Traditionally, the company has always designed and made their chips in-house, so asking an outside foundry to make their chips is a pretty big deal. To date, it has considered asking TSMC and Samsung to manufacture its 7nm process, which is expected to land in 2023.
Having said that, several analysts are dubious of Intel outsourcing its flagship chips to an outside company. Some analysts think it’s a stubborn decision, especially since Intel’s 2023 projection of its 7nm process was only made after it was reported that said process was “broken” and had to be delayed by 12 months. behind its internal targets.
On a side note, Intel also says that it was also investigating a possible hack, after information that the company’s shares rose by 6.5% during regular trade hours, was disclosed ahead of the trading’s close. To that end, the chipmaker’s forecasted first-quarter revenue was reportedly set beyond Wall Street’s expectations, primarily due to the surge in demand for laptops and PCs. Caused by the ongoing COVID-19 pandemic.