Investors reacted to Intel’s financial recovery plans by dumping the company’s shares
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Intel shares fell almost 6% on Wednesday trading after the management of the American company provided investors with clarifying data to the previously announced financial recovery plan, which aims to successfully compete with Taiwan Semiconductor Manufacturing Company and Samsung Electronics in semiconductor manufacturing.
Intel CFO David Zinsner during the presentation, in particular, said that the IFS semiconductor division will reduce costs by $3 billion this year, and by $10 billion over the next three years. According to him, next year they will become the second the world’s largest semiconductor maker after TSMC with over $20 billion in manufacturing revenue.
As part of this strategy, in the last week, Intel announced on the construction of factories for the production of semiconductors in Germany, Poland and Israel. However, during yesterday’s presentation, Intel management did not outline a clear time frame for expanding production and increasing profitability. It also did not name any new external customers for the IFS division’s products, saying only that the company will use the semiconductors for its own needs before accepting orders from outside.
Meanwhile, investors and analysts have compared Intel’s reported manufacturing earnings figures to those of TSMC. TSMC’s 2024 sales are expected to reach $85 billion, Summit Insights Group analyst Qinngai Chan said. Reuters.
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