'Intel still has its best days in front of it' - Gelsinger unveils plans for chip maker's resurgence
Chipmaker’s incoming chief exec outlines his priority areas on earnings call to investors
Pat Gelsinger's priorities when he joins Intel as its new CEO will be developing its product set, chip innovation, restoring customer confidence and the "Grovian" culture at the firm.
Gelsinger joined current incumbent Bob Swan on a Q4 earnings call with investors for the chipmaker's Q4 results, where he outlined his focus areas and what shareholders can expect when he takes over from 15 February.
He told investors that he believes the majority of Intel's 7-nanometer products will be manufactured internally within the next two years.
"I do want to provide my view specifically on 7-nanometer progress. I've had the opportunity to personally examine progress on Intel's 7-nanometer technology over the last week," he said.
"Based on initial reviews, I am pleased with the progress made on the health and recovery of the 7-nanometer programme. I am confident that the majority of our 2023 products will be manufactured internally.
"At the same time, given the breadth of our portfolio, it's likely that we will expand our use of external foundries for certain technologies and products. We will provide more details on this and our 2023 roadmap once I fully assess the analysis that has been done and the best path forward."
Intel's Q4 revenue was $20bn, down one per cent year-on-year. However, it's full-year results hit an "all-time Intel record" of $77.9bn, an increase of nine per cent on the previous year's total.
"We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year," stated Swan, Intel's departing chief exec.
"Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off.
"It has been an honour to lead this wonderful company, and I am proud of what we have achieved as a team. Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level."
His successor was coy to delve into too much detail about his plans on the call, but was bombastic in his predictions for the chipmaker's future, laying out his four key areas for development.
"There is enormous opportunity ahead for Intel, but to be able to seize these opportunities, we have to deliver the best products and stay ahead of our customers' needs," he emphasised.
"We need to become more agile in a very competitive market. We need to execute flawlessly and deliver on our commitments. We need to passionately innovate with boldness and speed."
He intends to restore Intel as the leader in chip technology, delivering the "greatest" innovations in the chip industry.
"We're going to continue to be a source, a fountain, a continual delivery vehicle for the greatest innovations of the industry," he declared.
"We'll be doing that with the IDM model, 7-nanometers beyond, but continuing to find radical areas to innovate because the world is looking for more digital technology as more and more of every aspect of humanity is coming online and coming to the digital foundation that we uniquely build and deliver."
He also intends to regain customer confidence in Intel's vision and its product set, as well as re-installing the "maniacal" and transparent data-driven culture that he learned under former Intel boss Andrew Grove.
"Intel has gone through cycles before and we've had periods where we were ahead and periods where we were behind others," he explained of his reasoning for taking on the top role.
"Great companies are able to come back from periods of difficulty and challenge and they come back stronger, better, and more capable than ever and that I believe is the opportunity at Intel and I'm confident that this company has its best days in front of it and I am looking forward to the opportunity to be part of that."