Intel CEO Satisfied with Financial Return on Investment in Developments in Recent Years

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Last updated on July 25th, 2023 at 03:55 pm

Intel CEO Satisfied with Financial Return on Investment in Developments in Recent Years

Only the lazy did not try to find the “root of evil” after Intel’s July revelations about the delay in mastering the 7-nm process technology, but the corporation’s management is trying to save face even in the face of falling stock prices. According to the head of the company, the development of the previous five years brought her $ 20 billion in additional revenue, and the company’s profits doubled during this time.

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As Intel CEO Robert Swan admitted in an interview with Barron’s, in this sense, the company’s management is quite satisfied with the financial return on investment in development over the past five years. Where the current almost $ 13 billion a year will be directed, he did not specify but explained that now the priority areas for the company are the directions of artificial intelligence, 5G networks, and edge computing. For Intel, these areas of development are not new, it has been investing in them for ten years.

Robert Swan stressed that the annual market launch of “leading products” in the PC segment remains a priority for Intel, and a decent portion of the R&D fund will be spent on these needs, and the profitability of this market segment continues to be decent. This part of the business continues to be held in high regard by Intel.

According to the head of Intel, development is being carried out in parallel in three phases. The first covers those products and technologies that should enter the market within the next year. The second increases the planning horizon to three years, and the third covers a perspective of more than three years. Even the need to outsource 7nm technology to third-party contractors hasn’t convinced Intel to rethink its business model. According to Swan, the advantage of vertically integrating development and manufacturing allows the company to receive the added value in full, rather than share it with partners.

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