Friday, 27 May, 2022

Intel sales hit record on chip demand as shortage lingers

Intel sales hit record on chip demand as shortage lingers

Popular News

Intel on Wednesday said 2021 was a record year for sales at the chip maker as it navigated unprecedented demand and supply chain constraints.

The US-based firm also saw costs rise and margins shrink as it shifted to a more sophisticated line of semi-conductors, analysts noted.

"The fourth quarter represented a great finish to a great year," said Intel chief executive Pat Gelsinger.

Intel revenue for last year tallied $79 billion, some $20.5 billion of which it took in during the final three months, according to its earnings report.

Profit in the quarter was $4.6 billion, however, in a 21 percent decrease from the same period a year earlier.

Profit for 2021 totaled $19.9 billion, about five percent less than the net income in the prior year.

Last year was marked by "unprecedented demand tempered by supply chain constraints" that are expected to continue through into next year, Gelsinger said during an earnings call.

Intel has invested heavily in semiconductor production in the United States and Europe over the past year, with a recently announced strategy that relies on expanding in-house manufacturing and increased use of subcontracted factories.