In light of the global economic uncertainties, Intel Corp. (NASDAQ: INTC) is rethinking some of its short-term expenditure plans.
On Wednesday, Intel said that “prioritization in our expenditure will help us weather macroeconomic uncertainties, execute on our plan and deliver our obligations to customers, shareholders, and employees.” America’s biggest semiconductor company by revenue also believes that the industry is entering a long-term growth phase.
A source familiar with the subject tells that the company is putting a hiring block on its Client Computing Group while it reassesses its objectives. The firm offers processors for devices like laptops that have been affected by Covid-related lockdowns in China, which have disrupted demand for these products. Reuters first reported on the employment moratorium, which is now in effect.
After the lockdowns, market research company International Data Corp. slashed its forecast for personal computer sales by around 7%. This year, IDC predicts conventional PC sales to dip 8.2 percent to 321.2 million units. IDC predicted a 346 million unit drop before China’s lockdowns.
As part of CEO Pat Gelsinger’s ambitious recovery strategy for the firm, Intel plans to spend more than $100 billion on new chip-making facilities in the US and Europe over the next several years.
New chip factories have recently been announced by semiconductor giants Samsung, Intel, and Texas Instruments in the United States. Rob Copeland travels to Central Texas to find out why Samsung is relocating and what this may imply for the American economy. Adele Morgan’s photo illustration.
The workforce and budgeting of other IT firms are also being reevaluated. Last month, Microsoft Corp. announced that it will be reducing some of its staffing levels. The parent company of Facebook, Meta Platforms Inc., put the brakes on some hiring earlier that month, and Twitter Inc. is likewise looking to tighten its belt.
According to Mr. Gelsinger and other chip industry leaders, the semiconductor industry’s income will almost double to over $1 trillion in the next decade, thanks to the rising demand for digital goods and services.
