Intel has acknowledged the need to prioritize efficiency in production as it faces declining market share and increasing competition from rival chipmakers. The company’s executives have stated that they must adopt a “zero-waste” model, focusing on minimizing waste and maximizing productivity.
Following CEO Pat Gelsinger’s sudden departure, Intel’s new leadership emphasized the importance of efficiency. Chief Global Operations Officer Naga Chandrasekaran said the company should adopt a strategy of “no wafer left behind,” where every wafer is utilized to its maximum potential. However, he also noted that this approach must be balanced with a “no capital left behind” mindset, ensuring that the company’s resources are allocated effectively.
Intel has struggled to maintain its dominance in the market, losing ground to Nvidia, Samsung, and other competitors. The company’s share price has dropped by almost 50% this year, attributed to various challenges including significant losses, layoffs, and buyouts.
Chandrasekaran and interim co-CEO David Zinsner stressed the need for the company to scrutinize its capital spending and operating expenses closely. “We’re going line by line through this stuff, and he’s challenging everything,” Zinsner said of Chandrasekaran’s strategy. The company has committed to sticking to its current financial forecast despite concerns about the impact of the upcoming Trump administration.
Intel is also benefiting from a $7.9 billion CHIPS Act grant, which will help boost the American semiconductor industry. However, the company’s executives appear unfazed by potential trade tensions and President Trump’s tariff threats. They have highlighted Intel’s geographic dispersion of factories, allowing them to adapt quickly in response to changing market conditions.
The company is reportedly considering candidates for Gelsinger’s replacement, including former board member Lip-Bu Tan and Marvell Technology CEO Matt Murphy.
Source: https://www.businessinsider.com/intel-efficiency-push-no-wafer-left-behind-chandrasekaran-capital-expenditures-2024-12