American semiconductor giant Intel Corp. is gearing for the global chip shortage to be extended for the next two years, the company reported.
- Intel’s new Chief Executive Pat Gelsinger believes boosting capacity will have a lag as it may take a while to build new factories amid the global shortage.
- The company has upped its sales projection by $500 million to $77 billion to reflect supply constraints for the year. This is also slower than its rivals.
- Sales in the first quarter fell 1% to $19.7 billion, dragged by legal settlement costs of $3.4 billion.
- Net income stood at $5.7 billion and revenue at $18.6 billion in the first quarter, excluding the pending sale of the firm’s memory business. Revenue for the second quarter is expected at $18.9 billion.
- Appointed as chief in February, Gelsinger said Intel seeks to gain market share after losing ground to Asian rivals.
- Plans include a $20 billion spending program to put up two new semiconductor plants in Arizona, as Intel aims to become a major contract chip maker.
INTC: Nasdaq is down 3.23% premarket.