By Aaron Tilley
Intel's new co-CEO on Wednesday talked up the importance of more spending discipline as the chip giant works to execute the strategy put in place by former Chief Executive Pat Gelsinger.
The comments by David Zinsner, who is also Intel's finance chief, at a UBS technology conference were his first public remarks since the company announced Gelsinger's abrupt retirement on Monday. That capped a nearly four-year effort by Gelsinger to revive the struggling chipmaker, in part by heavy investments to build out a so-called foundry business that manufactures chips for other companies.
"The board was pretty clear that the core strategy remains intact," said Zinsner, who was named interim co-CEO along with another top Intel executive while the board searches for a permanent leader.
However, he said Intel is closely scrutinizing its capital spending, which the company has estimated will be $25 billion this year and between $20 billion to $23 billion in 2025.
"We're just, you know, way more conservative around how we roll out capital," Zinsner said.
He cited the role of Naga Chandrasekaran, who joined Intel several months ago to head its foundry operation, in working on spending discipline.
Chandrasekaran, speaking at the same conference, said Intel needs to shift its mindset to focus more on the needs of outside customers for the foundry business. "There's a significant cultural change that needs to happen within Intel for us to transition... to becoming a foundry," he said.
Intel's shares ended trading Wednesday down 2.3%
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(END) Dow Jones Newswires
December 04, 2024 17:39 ET (22:39 GMT)
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