Intel has presented its figures over the last few hours using a new presentation method, isolating in particular its IFS foundry business. And quite frankly, Intel’s laudable ambition to give maximum visibility to its activities has cast a pall over the stock market. Why did this happen? Quite simply because of a new reporting methodology that isolates each of the company’s activities. As a result, financial communication will be broken down into the following divisions:
- The “Products” division, grouping together its consumer processors, data center and AI equipment, and network and edge hardware.
- The “Intel Foundry” division, which brings together the company’s recently launched chip foundry activities, and which is the focus of massive investment by the American company.
- The “Other activities” division, which includes the programmable chips subsidiary Altera, as well as Mobileye, the Israeli entity dedicated to autonomous driving.
Intel’s colossal project
This method highlighted the American company’s heavy losses in the foundry business… But could it have been otherwise?
Although the business is now autonomous in accounting terms, it is still paying for the strategic errors of the past and, above all, it is not yet reaping the benefits of the new contracts announced some time ago. In its race to catch up with its technological lag, Intel, in these announced figures, can only rely on the production of its own chips. This is an area in which the company has been under pressure from AMD, particularly in recent years.
But Intel and its ebullient CEO are convinced: they’ve done the hard part. Thanks to their ambitious plan, they believe they can regain their leadership in the semiconductor industry. In the coming months, several contracts signed this year will feed Intel’s foundries and bring the chip manufacturing division back into the black. Intel is also counting on the geopolitical situation to bring other American giants such as Nvidia and Apple back into the fold.
