After manufacturing problems: Intel restructures management

Although Intel posted good figures for its third business quarter, the stock market severely punished the chipprimus as the outlook for the next few months was only moderate. In addition, investors were furious that Intel is making slow progress with its next generation of processors manufactured in the 7-nanometer (nm) process. Corresponding CPUs should no longer be released in 2021, but from mid-2022 (client CPU Meteor Lake) or even only in early 2023 (server CPUs Granite Rapids).

The background is a serious problem in production, which leads to a reject rate that is much too high. Intel basically manufactures its processors itself, but CEO Bob Swan now suggests that he could also imagine outsourcing parts of the manufacturing.

In previous years, Intel had already had enormous difficulties with the 10 nm manufacturing process. Chief Financial Officer George Davis said at an analyst conference in March this year that the 10 nm production process has so far been less productive for Intel than the 14 nm and also the 22 nm process. After years of delay, the chips are now used in ultrabooks and server CPUs of the Ice Lake series, but chip yield and clock rates do not meet expectations. Davis admitted that Intel was lagging behind the competition. With the 7 nm process, however, the company wants to catch up with the rivals – and with the 5 nm process, it will win back the top in a few years.