Through two separate interviews, CEO of Intel, Pat Gelsinger revealed two future plans for Intel: less stocks buyback and an investment on a new chip plant. How will the US chip-maker company commence with the plans?
CEO of Intel: Focus on stocks buybacks is lower than in the past
The news was delivered by Pat Gelsinger himself through an interview with the CBS News Magazine. Quoted from Reuters, Gelsinger revealed, “We will not be anywhere near as focused on buybacks going forward as we have in the past.” This plan is supported by Intel’s board of directors, Gelsinger adds.
The statement was an answer to the question comparing Intel’s spendings on buying its own stock and its investment in research and development. With the recent global semiconductor chips shortage, a lot of eyes have been keeping Intel, as the only major US chip manufacturer, on watch.
Accordingly, Bloomberg reported that Intel spent at least $2.3 billion on share repurchases in the first quarter alone.
At the moment, Intel mainly produces its chips in Asia. Gelsinger, however, did revealed in March that Intel would spend billions of dollars to build two new factories in Arizona. Intel expected tThe $20 billion project could help to expand its advanced chip manufacturing capacity.
Additionally, Gelsinger mentioned in the interview the plan to reconfigure some factories to make chips for cars.
Intel ready to spend $10 billion on new chip plant
Other than the expansion of its factories in the US, Intel also plans to enlarge its Asia’s plant. Gelsinger announced the project in his one-day visit to Israel as part of a European Tour.
Intel Corp confirmed to have spent $100 billion for a new chip plant. According to Reuters, Intel will inject an additional $600 million investment in Israel for its research and development. In addition to this, Intel will also be investing $400 million in turning its Mobileye unit in Jerusalem into an R&D campus, built to focus on the development of self-driving car technologies. Not only that, Intel will allocate another $200 million to build an R&D centre called IDC12 in the port city of Haifa. The facility, is expected to have a capacity of 6,000 employees,
Intel has bought three Israeli tech companies in the past few years. In 2017, Intel spent over $15 billion for Mobileye. Then, Intel proceed to buy artificial intelligence chipmaker Habana for $2 billion in 2019. The latest purchase was Moovit for $1 billion from a year ago.