Intel stock dips as new chip designation, production schedule revealed

Dow Jones2021-07-27

MW Intel stock dips as new chip designation, production schedule revealed

By Wallace Witkowski

Chip maker rolls out production schedule to 2025 in online event

Intel Corp. shares declined steadily in the extended session Monday after the chip maker revealed its "road map" and repackaging plans for its future products.

Intel $(INTC)$ shares dropped more the 3% in after-hours trading as the company's conference call progressed, and were down 2.5% by the end of the call, following a 2.5% rise to close the regular session at $54.31. In comparison, the Dow Jones Industrial Average -- which counts Intel as a component -- rose 0.2% on Monday.

Intel said it is changing how it refers to its semiconductors, breaking with the convention used since 1997 of using nanometers, or "nm," to denote the size of each transistor that goes on a computer chip, with the general rule being that smaller transistors are faster and more efficient in using power. Intel delayed release of its 7-nm chip out to late 2022 last year, after smaller rival Advanced Micro Devices Inc. $(AMD)$ started rolling out its 7-nm chip in the summer of 2019.

"Building on Intel's unquestioned leadership in advanced packaging, we are accelerating our innovation road map to ensure we are on a clear path to process performance leadership by 2025," Pat Gelsinger, Intel's chief executive, said on the call.

Intel said it would start producing its "Intel 7" chip in the first quarter of 2022, with the "Intel 4" scheduled for production in the second half of 2022, and the "Intel 3" being produced in the second half of 2023.

From there, Intel plans the "Intel 20A" and "Intel 18A" chips for early 2025, where the "A" refers to angstrom, which is a tenth of a nanometer. Intel said it has partnered with Qualcomm Inc. $(QCOM)$ on 20A with mobile products in mind.

Additionally, Intel said that Amazon.com Inc.'s $(AMZN)$ AWS public cloud is the first customer to sign on for IFS, or Intel Foundry Services, which will make silicon wafers needed to make chips.

-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com

$(END)$ Dow Jones Newswires

July 26, 2021 18:30 ET (22:30 GMT)

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Intel stock dips as new chip designation, production schedule revealed

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