Intel announces third quarter 2021 financial results, chip sales are sluggish even though internal semiconductor shortage is resolved
On October 21, 2021 local time, semiconductor giant Intel announced its financial results for the third quarter of 2021 (July-September). Intel's share price fell 9% after the announcement of financial results, as sales fell below market expectations in the same period.
Intel Reports Third-Quarter 2021 Financial Results :: Intel Corporation (INTC)
Intel (INTC) earnings Q3 2021
https://www.cnbc.com/2021/10/21/intel-intc-earnings-q3-2021.html
Intel Reports Q3 2021 Earnings: Client Down, Data Center and IoT Up
https://www.anandtech.com/show/17027/intel-reports-q3-2021-earnings-client-down-datacenter-and-iot-up
Intel's total revenue in the third quarter of 2021 was $ 18.1 billion, which was below the market forecast of $ 18.24 billion.
Intel's largest business, the Client Computing division, recorded sales of $ 9.7 billion, down 2% year-over-year. The Client Computing division includes sales of Intel's chips for PCs. Regarding the year-on-year decrease in sales, the company's CEO Pat Gelsinger pointed out that although the shortage of semiconductors in the company was resolved, the number of shipments may have been sluggish due to the shortage of parts on the PC manufacturer side. increase. 'We are in the worst condition right now and will be gradually improving every quarter next year. We will not be able to balance supply and demand until 2023,' said Gelsinger. ..
Regarding the PC demand that occurred during the pandemic of the new coronavirus, some analysts say, 'PC sales are sluggish, so the surge in demand may be nearing its end.' On the other hand, Gelsinger CEO seems to think that the demand for PCs will continue to increase in the future, 'The PC business is now structurally large, recording sales of 1 million units a day. It's becoming a business that does. '
Meanwhile, sales in the data center division, which sells processors and other silicon for data centers, increased 10% year-on-year to $ 6.5 billion. However, this figure is also below the market forecast of $ 6.6 billion (about 750 billion yen). CNBC explained that Intel's data center division's sales increased 'due to increased demand for on-premises servers for businesses and governments.' Meanwhile, Gelsinger CEO explained, 'Sales did not grow as expected as our main customer, a cloud computing service vendor in China, responded to new government regulations.'
In addition, sales in the IoT division increased 54% year-on-year to $ 1 billion, and sales of Intel's subsidiary Mobileye, an automobile-related technology, increased 39% year-on-year to $ 320 million, non-volatile memory. Solutions sales were down 4% year-over-year to $ 1.1 billion, and Programmable Solutions sales were up 16% year-on-year to $ 478 million.
At the same time as the announcement of financial results for the third quarter of 2021, Intel announced that it will invest $ 20 billion in this field, including a project to build a new semiconductor factory in Arizona, USA.
Intel forecasts that it will record $ 18.3 billion in sales in the fourth quarter of 2021.
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in Hardware, Posted by logu_ii