Intel delays 2023 server chip, says it needs to boost spending to catch competitors
[www.cnbc.com]

Intel stock fell over 5% on Friday after the company told investors at a meeting on Thursday that it will have to spend heavily in the next two years to power its turnaround and transformation into a manufacturer for other semiconductor companies.

The stock also took a hit on Thursday when CEO Pat Gelsinger confirmed that a forthcoming server chip, codenamed Granite Rapids, had been delayed from 2023 to 2024.

The chip is particularly important because it will be the first Intel server processor to use extreme ultraviolet lithography, a key technology Intel needs to deploy to catch up with TSMC and other top chip manufacturers.

Gelsinger took over as Intel CEO a year ago, promising to turn the company around as rival companies such as AMD and former customers such as Apple started to challenge Intel’s status as the best processor maker in terms of power and performance.
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Intel officials said on Thursday that the company plans to reach 10% annual sales growth by 2025 but that revenue growth this year would be “moderate.” Intel CFO Dave Zinsner said the company is entering an “investment phase” and expects at least $1 billion in negative free cash flow in 2022 as it increases capital spending.