Intel to invest $25 bn in new Israel plant: government

JERUSALEM — US chip giant Intel will spend $25 billion on a new plant in Israel, officials said, with Prime Minister Benjamin Netanyahu calling it the country's single largest foreign investment.

The "agreement in principle" would see the semiconductor firm build the facility in southern city Kiryat Gat that would open by 2027 and operate at least until 2035, Israel's finance ministry said.

As part of the deal, Intel's taxes to Israel would rise from 5 to 7.5 percent, the finance ministry said in a statement.

Intel in return would receive a grant of 12.8 percent of its outlay, the ministry said, in line with Israel's capital investment encouragement law.

Netanyahu said the new plant would constitute "the largest investment in Israel".

"This is a great show of confidence in Israel's economy, and shows the strength of the free economy we built here and the technological economy developing here," the Israeli leader said.

The two sides would begin finalizing the deal in a process expected to take a number of weeks, according to the ministry.

A spokesman for Intel in Israel had no immediate comment.

Intel has been operating in Israel since the 1970s with development centers and a production site that employ some 12,000 people out of the company's global workforce of 130,000, the finance ministry said.

In 2017, Intel acquired Israel-based Mobileye, which makes technology for automated driving systems in vehicles, for just over 15 billion dollars.

Agence France-Presse

Intel to spend $20 billion on US chip plants as CEO challenges Asia dominance

Intel Corp will greatly expand its advanced chip manufacturing capacity as the new chief executive announced plans to spend as much as $20 billion to build two factories in Arizona and open its factories to outside customers.

The move by CEO Pat Gelsinger on Tuesday aims to restore Intel's reputation after manufacturing stumbles sent shares plunging last year. The strategy will directly challenge the two other companies in the world that can make the most advanced chips, Taiwan's Semiconductor Manufacturing Co Ltd (TSMC) and Korea's Samsung Electronics Co Ltd.

And it will aim to tilt a technological balance of power back to the United States and Europe as government leaders on both continents have become concerned about the risks of a concentration of chipmaking in Taiwan given tensions with China.

Intel shares rose 7.5 percent after the company disclosed its new strategy and full-year financial guidance for 2021. Some investors such as Third Point LLC had previously urged Intel to consider spinning off its costly chip manufacturing operations.

Intel said it expects $72 billion in revenue and adjusted earnings per share of $4.55, compared with analyst estimates of $72.9 billion and $4.77 per share, according to Refinitiv data. The company said it expects to spend $19 billion to $20 billion on capital expenditures.

Gelsinger said that 2021 forecast "reflects the industry-wide shortage" of some components such as substrates.

Intel is one of the few remaining semiconductor companies that both designs and manufactures its own chips. Rival chip designers such as Qualcomm Inc and Apple Inc rely on contract manufacturers.

In an interview with Reuters, Gelsinger said Intel has "fully resolved" its problems with its most recent manufacturing technology and is "all systems go" on chips for 2023. It now plans a massive manufacturing expansion.

That will include spending $20 billion on two new factories at an existing campus in Chandler, Arizona, that will create 3,000 permanent jobs. Intel will then work on future sites in the United States and in Europe, Gelsinger said.

Intel will use those factories to make its own chips but also open them to outside customers in what is called a "foundry" business model in the chip industry. Gelsinger said the new factories will focus on cutting-edge computing chip manufacturing, rather than the older or specialty technologies that some manufacturers such as GlobalFoundries specialize in.

"We are absolutely committed to leading process technology capabilities at scale for the industry, and for our customers," Gelsinger said, adding that Intel has lined up customers for the new factories but could not disclose their names.

He did say on a webcast Tuesday that Amazon.com Inc , Cisco Systems Inc, Qualcomm Inc and Microsoft Corp support its efforts to offer chip manufacturing services. On a conference call, Gelsinger said that Intel "will pursue customers like Apple."

The move is a direct challenge to TSMC and Samsung. The two have come to dominate semiconductor manufacturing business, moving its center of gravity from the United States, where much of the technology was once invented, to Asia, where more than two-thirds of advanced chips are now manufactured.

"Intel’s investment will help to preserve US technology innovation and leadership, strengthen US economic and national security, and protect and grow thousands of high-tech, high-wage American jobs," US Secretary of Commerce Gina Raimondo said in a statement.

Gelsinger said Intel will aim to change the global chip manufacturing balance by embracing the foundry business where it historically has been a minor player. Intel will offer chip customers the ability to license out its own technological crown jewels - known as x86 computing cores - as well as offer to build chips based on technology from Arm Ltd and RISC-V technology from startup SiFive.

"We will be picking our next sites within the next year for US and Europe," he said.

The American sites could benefit from a $30 billion subsidy package that lawmakers hope to bring to the floor of the U.S. Senate next month. The bill remains largely unwritten, and Gelsinger said on a conference call that Intel's plan "does not depend on a penny of government support. It is the right strategy for us going forward."

Intel also announced plans for new research collaboration with IBM focused on computing chip and packaging technology.

But even as Intel jumps into competition with TSMC and Samsung, it also plans to become a larger customer of theirs by turning to them to make subcomponents of its chips called "tiles" to make some chips more cost-effectively.

"I'll pick the best process technologies wherever they exist," Gelsinger said. "I leverage internal and external supply chains. I'll have the best cost structure. That combination of supply, products and costs, we think is a killer combination."

Intel has given few details of exactly how it will use outside factories, but analyst Patrick Moorhead of Moor Insights and Strategy said he expects Intel to use them as "gap fillers for some of the highest performance" chip parts until Intel can regain a manufacturing lead over its rivals.

-reuters-

South Korea's SK Hynix to buy Intel's NAND business for $9 billion

NEW YORK/SEOUL - Intel Corp has agreed to sell its NAND memory chip business to SK Hynix Inc for $9 billion in an all-cash deal that would propel the South Korean chipmaker to second in the global rankings.

The deal will allow SK Hynix to overtake Japan's Kioxia in the NAND memory market, and narrow the gap with market leader Samsung Electronics Co Ltd as the shift to work-from-home boosts demand for chips used in tablets and servers.

SK Hynix said Intel would sell all of its NAND business including its solid-state drive business, NAND product and wafer business, and its factory in Dalian, China. Intel would keep its Optane business, its advanced memory technology.

The deal would allow Intel to focus on its remaining memory business, Optane, a person familiar with the matter told Reuters.

Intel did not immediately respond to Reuters' requests for comment.

PANDEMIC-DRIVEN DEMAND

The Nand Flash industry grew in the April-to-June quarter thanks to robust demand for PCs and servers as the COVID-19 pandemic forced millions of people to work from home, according to market researcher Trendforce.

Hynix, which counts Apple Inc and Huawei Technologies Co Ltd as customers, is a distant fourth in the NAND memory chip market, although it ranks second after Samsung Electronics in DRAM memory sales.

Samsung is the leader in the NAND flash market with a 31.4 percent share, followed by Kioxia with 17.2 percent, SK Hynix with 11.7 percent, and Intel and Micron with 11.5 percent each.

With the acquisition, SK Hynix, part of South Korean conglomerate SK Group, will have a market share of 23.2 percent, narrowing the gap with cross-town rival Samsung Electronics.

The Wall Street Journal reported earlier that the deal was imminent. Intel's shares were up nearly 3 percent after the report.

-reuters-

Asian shares struggle after yet another Brexit delay

TOKYO -- Asian shares and US stock futures dipped on Wednesday after British lawmakers rejected the government's timetable to fast-track legislation for its deal to take Britain out of the European Union.

Technology shares in the region were knocked after Texas Instruments forecast current-quarter revenue well below estimates in a sign the global microchip industry is being squeezed by a downturn in demand and a prolonged US-China trade dispute.

In after-hour trade, Texas Instruments shares tumbled 9.8 percent, driving down other chipmaker shares including Intel and Nvidia.

In Asia, SK Hynix slipped 1 percent while Tokyo Electron fell 3.6 percent.

"This will be a warning on semi-conductor shares, which have put on a strong performance recently," said Norihiro Fujito, chief investment analyst at Mitsubishi UFJ Morgan Stanley Securities.

S&P500 mini futures dropped 0.4 percent while Japan's Nikkei dipped 0.3 percent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.17 percent.

On Tuesday on Wall Street, the S&P 500 lost 0.36 percent.

In the currency market, sterling traded at $1.2897, below 5-month highs of $1.3012 set on Monday in a volatile trading session.

But the currency still kept hefty gains made over the past fortnight on growing expectations that a no-deal Brexit will be avoided even though it is still not clear how the process will unravel.

The defeat in parliament meant Britain would not be able to finalize its exit by Prime Minister Boris Johnson's Oct. 31 deadline.

The next step, Johnson said, would be waiting for the EU to respond to a request to delay the Oct. 31 Brexit date, which the prime minister reluctantly sent to Brussels on Saturday after being forced to do so by lawmakers.

A source in Johnson's office said on Tuesday that a new election is the only way to move on from Britain's Brexit crisis if the European Union agrees to a delay until January.

"Broadly speaking, there are two scenarios. There will be a short extension before the parliament will agree on Johnson's plan. Or there could be a general election, which would need a longer extension," said Kyosuke Suzuki, director of forex at Societe Generale.

"But it now seems unlikely that Britain will crash out of the EU on Oct. 31," he said.

Receding worries about a no-deal Brexit also underpinned the euro, which stood at $1.1130, off Monday's two-month high of $1.1180.

The yen ticked up to 108.48 yen per dollar, in a slow recovery since hitting a 2-1/2-month low of 108.94 on Thursday as falls in global shares soured risk sentiment.

The dollar was broadly weak, ahead of a Federal Reserve policy meeting next week, where policy makers are expected to cut interest rates by 0.25 percentage point.

Oil prices fell after industry group data showed US crude stocks rose more than expected last week.

Still, on the whole the market held firm after China signaled progress in trade talks with the United States and OPEC and its allies pondered deeper production cuts.

Brent crude futures fell 0.49 percent to $59.41 a barrel while US West Texas Intermediate (WTI) crude lost 0.64 percent to $54.13 per barrel.

source: news.abs-cbn.com

Apple takes majority stake in Intel modem unit

SAN FRANCISCO - Apple agreed Thursday to pay $1 billion to acquire the majority of Intel's smartphone modem business, a move giving the iPhone maker more control over its supply chain.

As part of the deal, some 2,200 Intel employees will join Apple, which will acquire intellectual property, equipment and leases.

Johny Srouji, Apple's senior vice president of hardware technologies, said the move "will help expedite our development on future products and allow Apple to further differentiate moving forward."

Intel chief executive Bob Swan said the deal "enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created."

Apple has been investing in its own mobile chips to ramp up performance and features in its devices and reduce its dependence on sector leader Qualcomm.

Intel earlier this year announced it was abandoning efforts to compete with modem chips for smartphones synched to new-generation "5G" networks.

Apple has accused Qualcomm, which holds the most patents for chips, of taking advantage of its dominant position to charge exorbitant amounts for its chips or access to its patents. But the two firms later agreed to settle their legal disputes.

source: news.abs-cbn.com

Apple in talks to buy Intel smartphone chip unit: report

SAN FRANCISCO - Apple is in talks to buy Intel's smartphone modem chip unit, a move that would help the iPhone maker control a key component, the Wall Street Journal reported on Monday.

The Journal cited unnamed people familiar with the matter as saying the deal would cover Intel patents and staff valued at a billion dollars, but that it might not come together.

Apple has been investing in its own mobile chips to ramp up performance and features in its devices and reduce its dependence on Qualcomm.

Intel earlier this year announced it was abandoning efforts to compete with modem chips for smartphones synced to new-generation "5G" networks.

Intel made the revelation a day after Apple and Southern-California based Qualcomm said they agreed to "dismiss all litigation" against each other worldwide in what had been a sprawling battle over royalty payments.

The last-minute settlement cut short a courtroom clash between the tech giants just as it was getting underway in California. 

For two years, the companies had fought a multi-front brawl that could have required Qualcomm to pay billions.

At the heart of the battle were the royalties Qualcomm charges for its patented chips, which enable smartphones to connect to mobile networks.

Apple accused Qualcomm, which holds the most patents for chips, of taking advantage of its dominant position to charge exorbitant amounts for its chips or access to its patents.

Qualcomm denied the allegations and accused Apple of abusing its position and of taking legal action to negotiate prices down.

Several hours after the deal was announced, Intel said it was withdrawing from the 5G smartphone modem business, without indicating whether its decision was a cause or consequence of the agreement its rival signed with Apple.

source: news.abs-cbn.com

EXPLAINER: How 5G drove moves by Apple, Qualcomm and Intel

SAN FRANCISCO, United States - Apple Inc. and Qualcomm Inc. on Tuesday settled an acrimonious two-year legal dispute. Shortly afterward, Intel Corp said it would exit the smartphone modem chip business.

The entire drama played out as the mobile phone industry prepares to shift to a technology called 5G.

Echoing complaints from the US Federal Trade Commission, Apple had alleged that Qualcomm used its patent licensing business to keep a monopoly on modem chips that connect devices like the iPhone to wireless data networks. Qualcomm insisted that Apple was using its valuable technology with proper payment, and Apple later dropped Qualcomm's chips in favor of those from Intel.

In the end, Apple and Qualcomm ceased all litigation, with Apple signing a six-year licensing deal with Qualcomm and also agreeing to buy Qualcomm chips. Hours later, Intel said it was getting out of the modem chip business.

WHAT IS 5G?

5G is a new network technology for wireless communications that could be up to 100 times faster than current 4G networks. The networks are coming on line in the United States, China, South Korea and other places this year, but probably will not be widespread until 2020. Modem chips connect devices like phones to these networks.

WHO ARE THE PLAYERS IN 5G?

Prior to Tuesday, 5 companies had disclosed 5G modem chips or plans to make them: Qualcomm, Intel, MediaTek Inc. , Huawei Technologies Co. Ltd. and Samsung Electronics Co. Ltd. Samsung and Huawei, however, only make chips for their own mobile phones.

WHY DOES APPLE CARE ABOUT 5G?

Some of Apple's rivals in the smartphone market - notably Samsung - plan to release 5G devices this year, which could put pressure on Apple to match the feature. Many carriers that are investing heavily to build 5G networks are also likely to put their marketing efforts behind 5G phones.

WILL APPLE HAVE A 5G PHONE THIS YEAR?

It would require an extraordinary effort from both companies. New modems take months of testing to ensure phones will work on carrier networks. Under traditional time lines, Apple would have needed to start testing a 5G iPhone last year, but its supplier Intel did not have a chip ready.

WILL APPLE LOSE MARKET SHARE WITHOUT A 5G PHONE?

Apple was slow to 4G too and did not pay a price. Samsung and others released 4G phones in 2011 as the networks were rolling out. Apple waited until 2012, when 4G networks become widely accessible. Many analysts believe Apple is making the same bet with 5G.

WHY DOES APPLE NEED QUALCOMM'S CHIPS?

Apple's only current modem supplier, Intel, said that it would not have a 5G chip ready until 2020, which could have pushed Apple's launch of a 5G iPhone into 2021 - a long enough delay that it could hurt sales. Qualcomm, on the other hand, is preparing to ship its second generation 5G chip and can meet Apple's needs with its current products.

WILL APPLE EXCLUSIVELY USE QUALCOMM'S CHIPS?

Not necessarily. While Apple and Qualcomm signed a supply agreement, Apple is working on developing its own modems and disclosed in court earlier this year that it has held talks with MediaTek and Samsung around modems.

WHY DID INTEL SHARE RISE AFTER IT EXITED THE MODEM BUSINESS?

Intel Chief Executive Bob Swan has told investors in the past that modem chips are not likely to fetch the same high margins as its CPU chips. Intel has plenty of other ways to make money from 5G, like selling CPUs to makers of base stations and so-called programmable chips to makers of networking gear.

source: news.abs-cbn.com

Intel aims to push beyond phones with 5G infrastructure deals

Intel Corp on Monday announced new chips and partnerships that it hopes will persuade its investors that the billions of dollars in research and development that it has poured into 5G networking technology will pay off.

Intel, the world's second-largest chip maker by revenue, got into the wireless data business with its acquisition of German modem maker Infineon in 2011. Its sole major modem customer is Apple Inc, whose iPhones feature Intel modem chips to connect to mobile data networks.

But the cutthroat modem business, where Intel competes against rivals such as Qualcomm Inc and MediaTek Inc, has lower margins than Intel is accustomed to making on its flagship processor chips that go into personal computers and data centers.

But Bob Swan, Intel's chief executive, said Intel's future in 5G networks, which are expected to roll out this year and next and be much faster than current 4G networks, extends beyond selling modems to phone makers.

Intel plans to also sell modems to automakers for use in connected vehicles, as well as to manufacturers for use in connecting industrial equipment. And Intel also plans to land its other chips - including processors and the so-called programmable chips it gained by acquiring Altera Inc in 2016 - in a variety of networking gear, he said.

"Where investors have been most anxious is, we were catching up for a while. Catching up, in their minds, means not making any money," Swan said at a press event in Palo Alto, California last week ahead of the Mobile World Congress conference being held in Spain this week. "Now we're at a stage where we believe we have products that are as good as anybody in the industry's as we move into 5G."

On Monday at the conference, Intel said it had reached a deal for network gear makers Fibocom Wireless Inc, Arcadyan Technology Corp and others to include Intel modem chips in so-called modules and gateways that will help industrial equipment connect with 5G networks. The company also introduced new programmable chips that will compete against Xilinx Inc, which in its most recent quarter saw a revenue boost from 5G deals.

Intel is also aiming to sell versions of its flagship processors for use in 5G base stations, which help carry mobile phone signals back to core networks and said it reached deals with Ericsson and ZTE Corp to use Intel processors in their 5G networking gear.

source: news.abs-cbn.com

Weak Intel outlook stokes fears of a chip slowdown

Intel Corp forecast current-quarter revenue and profit below analysts' estimates and missed fourth-quarter sales estimates on Thursday, hit by a slowdown in China and sluggish demand for its data center and modem chips.

The company's shares fell 6.7 percent in extended trading as the news stoked fears of an industry slowdown after sales warnings from Apple Inc, Samsung Electronics Co Ltd and Taiwan Semiconductor Co Ltd earlier this month pointed to stagnating demand from smartphone makers and a cooling Chinese economy.

Shares of smaller rival Advanced Micro Devices, which reports results next Tuesday, dropped 1.7 percent, as did Nvidia Corp.

Intel said weaker demand from China hurt the company's data center chip business, which has driven growth in recent years as PC sales have slowed and cloud-based services have become more popular.

In an interview, Intel Interim Chief Executive Bob Swan said data center providers tend to make large purchases in spurts and then spend time "digesting" the chips as they build out their centers.

Sales in China fell because some buyers there - especially cloud computing vendors - seem to have bought chips sooner than usual last year because of fears about US-China trade tensions, Swan said. US cloud computing vendors continued their usual buying patterns throughout the year, he added.

"I do believe there was earlier buying (among Chinese cloud customers) for server-type products in the course of the second and third quarter of last year," Swan said. "But overall I would say ... the prospects and the health of the industry are as bright as they've ever been. We're just in a digesting period."

For years, Intel had been insulated from swings in Apple's iPhone supply chain because it was not a major supplier. But it was the sole provider of 2018 iPhone modems, which help the phones connect to wireless data networks, and earlier this month, Apple cut its revenue forecast, citing weak demand in China.

Swan said Intel's modem business grew by 60 percent over last year but still came in about $200 million below target. The modem unit had "fantastic growth, but weaker than we expected, and as a result that impacted our revenues for the quarter," Swan said.

Intel forecast first-quarter revenue of $16 billion and adjusted earnings of 87 cents per share. Analysts on average were expecting revenue of $17.35 billion and a profit of $1.01 per share, according to IBES data from Refinitiv.

"The macro environment does not look good at the moment and if it gets worse, Intel could see a further downside to its outlook," said Kinngai Chan, an analyst with Summit Insights Group.

Intel has turned to the server chips it supplies data center operators for growth in recent years. However, fourth-quarter revenue in that higher-margin business came in at $6.07 billion, below expectations of $6.35 billion, according to financial and data analytics firm FactSet.

Intel said the data center business missed expectations on softer demand from China and slower cloud sales.

Revenue in the client computing business, which includes sales to PC makers was $9.82 billion, missing FactSet estimates of $10.01 billion.

Intel reported net income of $5.20 billion, or $1.12 per share, for the fourth quarter ended Dec. 29, compared with a loss of $687 million, or 15 cents per share, a year earlier.

Net revenue rose to $18.66 billion from $17.05 billion, but missed estimates of $19.01 billion.

Excluding items, the company earned $1.28 per share, above expectations of $1.22.

source: news.abs-cbn.com

Intel CEO resigns after probe of relationship with employee

Intel Corp Chief Executive Brian Krzanich resigned on Thursday after an investigation found he had a consensual relationship with an employee in breach of company policy.

The head of the largest US chipmaker is the latest in a line of men in business and politics to lose their jobs or resign over relationships viewed as inappropriate, a phenomenon highlighted by the #MeToo social media movement.

Krzanich led Intel as rival chipmakers ate away at its dominance in the technology over several decades and he also presided over a series of high-level executive departures.

The change in leadership comes as Intel expands beyond personal computers and servers into areas such as artificial intelligence and self-driving cars, where smaller competitors including Nvidia Corp are strong. Qualcomm Inc leads in the mobile chip market.

The board named Chief Financial Officer Robert Swan as interim CEO and said it had begun a search for a permanent CEO, including internal and external candidates.

"An ongoing investigation by internal and external counsel has confirmed a violation of Intel's non-fraternization policy, which applies to all managers," Intel said in a statement, declining to give any further information about the probe. Its shares fell 2.4 percent.

The company's board was informed a week ago that Krzanich had a mutual relationship with an employee in his chain of command in the past, according to a source familiar with the matter who asked not to be named. The relationship began before Krzanich became CEO in 2013 and ended several years ago, the person said.

'BK' OUT

Krzanich, who did not have an employment contract, is entitled to a $38 million "walk-away" payment in the event of a voluntary termination, according to Intel's regulatory filings.

Of that, $31 million is in the form of accelerated stock awards and $4.1 million in the form of deferred compensation, based on Intel's share price on Dec. 29.

An Intel spokesman declined to say whether the walk-away payment applied to Krzanich's resignation, but said the investigation into Krzanich's conduct continued and that the board reserved the right to take further action.

Corporations are under increasing pressure to "walk the walk" on executive behavior with the rise of the #MeToo movement, said Ivan Feinseth, chief investment officer at Tigress Financial Partners.

In the last few months Martin Sorrell, founder of advertising giant WPP Plc, and casino mogul Steve Wynn of Wynn Resorts Ltd resigned after accusations of impropriety. Wynn has denied the accusations and Sorrell has denied any wrongdoing.

Krzanich, 58, an engineer and Intel veteran known at the company as "BK," was appointed CEO in May 2013. Intel shares more than doubled during his tenure as the company expanded into new markets.

He was recently credited with containing the fallout from the discovery of security flaws in the company's chips that could allow hackers to steal data from computers, although his sale of much of his Intel stock before the flaws were disclosed to investors attracted some criticism.

TIME FOR AN OUTSIDER?

His temporary replacement, Robert Swan, has been Intel's CFO since October 2016 and previously spent 9 years as CFO of eBay Inc. Given his short tenure and lack of experience in manufacturing, he is not likely to be named permanent CEO, Cowen analyst Matthew Ramsay said.

While Intel dominates in processors for servers and data centers, global competitors are catching up with its manufacturing technology, said Bernstein analyst Stacy Rasgon.

"BK will go down in history as the CEO that let Intel's process leadership advantage slip away," he said, adding that a change at the top could bring in fresh ideas.

Kevin Cassidy, an analyst at Stifel, said that Intel would take the change in stride.

"Although we respect Krzanich's efforts in redirecting Intel's strategy from a computer-centric to a data-centric company, we view Intel as a process-driven company with a deep bench of CEO candidates that can continue to drive the corporate strategy," he said.

In its 50-year history, Intel has never appointed a permanent CEO who did not come up through the company's ranks.

But those ranks are thinner than they used to be, with prominent Intel executives such as former CFO and manufacturing chief Stacy Smith, former president Renee James, ex-architecture chief Dadi Perlmutter and Dianne Bryant, who headed the data center group, leaving in recent years.

Instead, Krzanich's replacement could end up being one of the outsiders he brought into the company's executive ranks, a sort of "insider outsider" such as Murthy Renduchintala, Intel's chief engineering officer who joined Intel in 2015 after helping lead Qualcomm's chip business.

"They've got some very good people they've brought in," said Dan Hutcheson, CEO of VLSI Research Inc, who "know the company, know the new direction. It's not a turnaround story."

UBS analyst Tim Arcuri wrote to clients that "the door is open to hire from the outside."

Intel on Thursday raised its second-quarter revenue and profit forecast, saying it expects quarterly revenue of about $16.9 billion and adjusted profit of about 99 cents per share, up from a previous forecast of $16.3 billion in revenue and adjusted earnings per share of 85 cents.

Analysts on average were expecting revenue of $16.29 billion and adjusted profit of 85 cents per share.

"There are no new payments as part of his departure," a source familiar with the company told Reuters.

source: news.abs-cbn.com

Samsung overtakes Intel as world's biggest chip maker: study

South Korea's Samsung has overtaken U.S. rival Intel as the world's biggest maker of semiconductors as sales in the sector boom, a study published by consultancy Gartner showed on Thursday.

Samsung Electronics "gained the most market share and took the number one position from Intel -— the first time Intel has been toppled since 1992," said Gartner analyst, Andrew Norwood.

The total global market for semi-conductors grew by 22 percent to $419.7 billion (348 billion euros) in 2017, fueled by growth in smartphones and other connected devices, Gartner calculated.

Samsung's sales jumped by 52.6 percent to $61.2 billion, giving it a market share of 14.6 percent, the study showed.

Intel's sales, on the other hand, grew by just 6.7 percent to $57.7 billion, or a market share of 13.8 percent.

Booming demand for memory chips was the main factor driving growth in the semi-conductors market, Gartner said.

"Memory accounted for more than two-thirds of all semiconductor revenue growth in 2017, and became the largest semiconductor category," said analyst Norwood.

The key driver behind the booming memory revenue were higher prices due to a supply shortage, the study said.

NAND flash prices increased year-on-year for the first time ever, up 17 percent, while DRAM prices rose 44 percent.

"Equipment companies could not absorb these price increases so passed them onto consumers, making everything from PCs to smartphones more expensive in 2017."

Gartner suggested that the global ranking could be shaken up again this year if Singapore-based Broadcom succeeds in taking over U.S. rival Qualcomm after its unsolicited merger offer was rejected last November.

If the tie-up eventually does go ahead, Samsung would fall back to third place in terms of revenues, Gartner calculated.

"2017 was a relatively quiet year for mergers and acquisitions. Qualcomm's acquisition of NXP was one big deal that was expected to close in 2017, but did not. Qualcomm still plans to complete the deal in 2018, but this has now been complicated by Broadcom's attempted takeover of Qualcomm," Gartner said.

The combined revenues of Broadcom, Qualcomm and NXP amounted to $41.2 billion in 2017.

"If Broadcom can finalize this double acquisition and Samsung's memory revenue falls as forecast, then Samsung could slip to third place during the next memory downturn in 2019," said Norwood.

source: news.abs-cbn.com

Intel's $15-B purchase of Mobileye rewrites driverless landscape

JERUSALEM/DETROIT - Intel Corp agreed to buy Israeli self-driving technology firm Mobileye for $15.3 billion on Monday in a deal that could thrust the US chipmaker into direct competition with rivals Nvidia Corp and Qualcomm Inc to develop driverless systems and components for global automakers.

The acquisition of Mobileye could propel the world's largest computer chipmaker into the front ranks of automotive suppliers at a time when Intel has been downplaying its core semiconductor business. It also promises to escalate the arms race among the world's carmakers and suppliers to acquire autonomous vehicle technology, and could fuel already-overheated valuations of self-driving startups.

The stakes are enormous. Last year, Goldman Sachs projected the market for advanced driver assistance systems and autonomous vehicles would grow from about $3 billion in 2015 to $96 billion in 2025 and $290 billion in 2035.

Intel so far has not been a significant player in the sector, although it has invested in at least half a dozen startup companies developing different components for self-driving systems, from robotics to sensors.

The acquisition of Mobileye could dramatically expand Intel's potential role in self-driving technology, with a broad portfolio that includes cameras, sensor chips, in-car networking, roadway mapping, machine learning, cloud software and data fusion and management.

"It's an area where (Intel) has had very little presence - the automotive market, and so this is a tremendous opportunity for them to get into a market that has significant growth opportunities," said Betsy Van Hees, an analyst at Loop Capital Markets.

"Mobileye's technology is very critical... The price seems fair," she added.

The $63.54-per-share cash deal represents a premium of about 33 percent to Mobileye's closing price of $47 on Friday, but below its all-time high closing price of $64.14 in August 2015.

The deal also could have an impact on the role of other self-driving component suppliers, including mapping company Here, as well as technology companies from Alphabet Inc's Google to Chinese Internet giant Baidu Inc.

Mobileye's shares jumped 29 percent to $60.96 in afternoon trade, while Intel's shares were down 2.1 percent. Shares of systems integrator Delphi Automotive PLC , which has partnerships with both companies, were up 3.4 percent.

MERGING 'EYES' AND 'BRAIN'

Intel will integrate its automated driving group with Mobileye's operations, with the combined entity run by Mobileye Chairman Amnon Shashua from Israel.

Intel Chief Executive Brian Krzanich said the acquisition was akin to merging the "eyes of the autonomous car with the intelligent brain that actually drives the car."

Mobileye supplies integrated cameras, chips and software for driver-assist systems - the building blocks for self-driving cars - to more than two dozen vehicle manufacturers.

In an interview in January, Shashua told Reuters: "If you want to build a truly autonomous car, this is a task for more than one player... The idea is to have a number of partners to share resources and data."

After Monday's deal with Intel was announced, Shashua told reporters: "When you look at the combined assets of both companies, you see that they are really complimentary to each other."

Mobileye was an early supplier of vision systems to Tesla, but the two companies had an acrimonious and public break-up last summer after the driver of a Tesla Model S was killed while operating the vehicle using Tesla's Autopilot system.

Mobileye, founded in 1999, accounts for 70 percent of the global market for driver-assistance and anti-collision systems. It employs 660 people and had adjusted net income of $173.3 million last year.

Shashua and two other senior Mobileye executives stand to do well by the deal: together they own nearly 7 percent of the company. Shmuel Harlap, Israel's biggest car importer and one of Mobileye's earliest investors, also holds a 7 percent stake.

BATTLE FOR SELF-CONTROL

Mobileye and Intel are already collaborating with German automaker BMW on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year.

At the same time, Mobileye has teamed up with Intel for its fifth-generation of chips that will be used in fully autonomous vehicles that are scheduled for delivery around 2021. Mobileye also has partnered with Delphi on a self-driving platform that is being shopped to smaller car companies that may not have the resources to develop their own systems.

Last October, Qualcomm announced a $47 billion deal to acquire the Netherlands' NXP, the largest automotive chip supplier, putting pressure on other chipmakers seeking to make inroads in the market, including Intel, Mobileye and Nvidia.

The Qualcomm-NXP deal, which will create the industry's largest portfolio of sensors, networking and other elements vital to autonomous driving, is expected to close later in 2017.

Intel is paying a premium of 60 times Mobileye's earnings, about four times the premium that Qualcomm is paying to acquire NXP.

source: news.abs-cbn.com

CloudFone teams with Intel for new tablets

MANILA – Guided by its "tablets for all" promise, Filipino gadgets manufacturer CloudFone recently introduced the the country’s first Intel-based Android Lollipop tablet, the CloudPad One7.0, and the first Intel-based dual-OS tablets, CloudPad Epic 7.1 and CloudPad Epic 8.9.

Eric Yu, president and CEO of CloudFone, cited the partnership between CloudFone and its partners such as Intel for the development of these products.

“CloudFone is driven to empower Filipinos by continuously innovating to fulfill the promise of 'Tablets For All,' and bringing the latest technology within people’s reach,” Yu said at a press briefing held in Makati City.

“Our collaboration with industry leaders guarantees that our products are developed with the highest standards of quality, reliability and performance," he added.

CloudPad One 7.0 runs on the latest Android Lollipop 5.0 OS and is powered by the 1.8 GHz Quad Core Intel Atom. It has 8GB of memory plus 1GB of RAM to store photos, videos, games and other applications that make the tablet experience both enjoyable and productive.

The 7-inch tablet is WiFi-ready and is capable of long hours with the Intelligent Battery Management System, which ensures that the tablet can sustain power throughout the day.

Intel Philippines country manager Calum Chisholm said the company's Intel Reference Design for Android (IRDA) was instrumental in enabling CloudFone to become the first local OEM in Asia Pacific Japan to make tablets based on the latest Android OS available in the Philippines. It enables CloudFone to easily customize designs based on the demands of Filipino end-users and accelerate their time to market.

The CloudPad One is based on the 64-bit platform of the new 22nm Intel Atom chip. This gives the tablets the ability to use more than 4GB of RAM. Moreover, the tablets have better responsiveness because its can fetch more data per cycle, making tablets capable of multi-tasking while improving power efficiency and battery.

Meanwhile, the CloudPad Epic 7.1 and CloudPad Epic 8.9 are equipped with CloudFone’s unique Crossover Technology, which allows users to run both Android 4.4 Kitkat and Windows 8.1. With two operating systems, users can enjoy the quality multimedia experience from Android and an ideal productivity environment with Windows. In Windows mode, users have the option to activate Office 365 applications such as Word, Excel or Powerpoint, which have all been optimally designed to work on touch-screen devices.

Both tablets have a 5MP rear camera and 2MP front-facing camera and powered by a 1.8 GHz Quad Core Intel Atom Processor. The CloudPad Epic 7.1 has a 7-inch high-definition display, and 32GB memory plus 1GB of RAM, while the CloudPad 8.9 has an 8.9-inch full HD display and 32GB memory plus 2GB o

CloudFone also introduced the CloudPad 8.0, which runs on Windows 8.1 and powered by the 1.8 GHz Quad Core Intel Atom Processor. The 8-inch tablet has 16GB of memory and 1GB of RAM. The most colorful addition to CloudFone’s newest tablet range, it comes in yellow, red and blue for users who value style just as much as performance.

The introduction of these new tablets has come at an auspicious time, as CloudFone marks its fourth anniversary this year. To celebrate this milestone, CloudFone is giving special discounts on select tablet models.

From P5,999, the CloudPad Epic 7.1 will now cost P4,999. The CloudPad Epic 8.0, originally at P9,999, now has a standard retail price of P7,999. The CloudPad Epic 8.9 retails at P8,999 and the CloudPad One 7.0 is easy on the pocket at just P6,999.

source: www.abs-cbnnews.com

Intel launches palm-sized computer for schools

MANILA -- Intel Philippines on Friday launched its Next Unit of Computing (NUC) kit intended for homes, small-medium enterprises and schools.

The NUC has two components: the classroom content distribution; and the classroom management software system.

The content distribution appliance is an educational content portal with content, standard through any web browser. It provides Internet and networking, wi-fi for local access and synchronization of content in cloud, local storage and network drivers.

The machine is powered by an Intel Celeron processor with 4 gigabits of memory. It can provide high definition graphics of up to 756 MHz. The unit also includes classroom content cloud software, router, configuration and installation service and one-day training.

The classroom management software system is composed of a 10-inch study book tablet personal computer that provides infrastructure for e-learning, collaboration, facilitation and management. It has a lab camera that allows students a natural science exploration app with a built-in camera. For network protection, it is equipped with McAfee mobile security that covers five years of anti-virus protection.

The tablet has an Atom processor and 1-gigabit memory.

Felta Multi Media Inc. is the educational solution provider of Intel for the two products.

source: www.abs-cbnnews.com

Google Chromebooks get boost from chip giants

SAN FRANCISCO -- Google's drive to put the future of personal computing firmly in the Internet "cloud" got a boost on Tuesday from chip titan Intel and hardware giants including Lenovo.

The leading computer maker joined Acer, Dell, Toshiba, Hewlett-Packard, Asus, and LG Electronics to introduce an array of new Chromebooks, many powered by newer-generation Intel chips that promise improved performance and battery life.

"Intel has been a strong partner since the inception of Chromebooks," Intel mobile client platforms group vice president Navin Shenoy said at a press event showcasing new models.

The array of Chromebooks coming to market included the first one from Lenovo aimed directly at the consumer market. China-based Lenovo is the world's leading personal computer company.

Popularity of a Lenovo Chromebook tailored for students in schools prompted the company to create a model for use outside of class, according to Lenovo "ambassador" Ashley Rodrigue.

"We have seen significant momentum and traction on the Chrome side of the house," Rodrigue told AFP.

"Because of that, we have taken a look elsewhere at the growth of Chrome."

Chrome challenges the traditional model of installing and maintaining programs on machines, instead letting devices serve as doorways to applications or services hosted at data centers connected to the Internet.

Chromebooks are also known for bargain prices. For example, Lenovo models will start at $279.

Shifting operating software to banks of servers online means that Google updates programs and fends off hackers and malicious software.

This is particularly appealing in the education market, where teachers prefer to focus on lessons instead of tech trouble-shooting and schools typically face tight budgets, according to Rodrigue.

"We saw today the tremendous amount of variety that is coming," Google product management vice president Caesar Sengupta said at the press event.

"I see people getting a lot more choice and differentiation among Chrome devices; it is a good thing for users."

Google introduced the first Chromebook in mid-2010 in a challenge to Windows operating software at the heart of Microsoft's empire.

Since then, the list of Chromebook makers has steadily grown and Chrome "boxes" designed for desktop computing have been added to the line-up.

Google is adamant that it remains devoted to its Android software for powering tablets and smartphones, following two paths when it comes to Internet-synched hardware.

source: www.abs-cbnnews.com

Intel to focus on 2-in-1 gadgets, tablets in 2014

MANILA, Philippines – Intel Philippines will be mainly focusing on 2-in-1 devices and tablets in 2014, its country manager Calum Chisholm said on Tuesday.

“For 2014, the two main drivers are really 2-in-1 and tablet. The 2-in-1 can also be an Ultrabook, but the main design ability is really going into a 2-in-1 type device because people are using multi-devices, they have the tablet, and a notebook as well,” he said in a press briefing.

Chisholm said Intel will also be involved in driving digital literacy and accessibility of affordable devices.

“We need to drive down accessibility of affordable devices. To do that we need to work with our multinational partners as well as local partners to bring in the Philippines about 70 percent of the market for tablets that is under $199. We need to be in that space offering good value systems,” he said.




Chisholm said while Intel “changed the PC landscape” in 2013 by improving connectivity and price points on smartphones and tablets, 2014 will be about innovation.

“Expect more designs and a refreshed line-up coming in 2014,” he said.

Intel Market Development Manager Wowie Wong, meanwhile, said now is “the pinnacle of the mobile industry for clamshells and notebooks.”

“We’re going to focus on 2-in-1s, some of which will be Ultrabooks, some will be not. It’s a new drive to see how consumers are more convenient with two devices in one,” he said.



Chisholm added that emerging technologies, such as wearable devices, will see a rapid increase in 2014.

He said Intel will be making an announcement on the development of wearable devices in the first half of 2014.

source: www.abs-cbnnews.com

Intel invites Pinoys to 'look inside'

MANILA, Philippines - IT giant Intel is hoping to entice more Filipinos to "look inside" with their latest campaign.

Through the Intel Experience Zone (IEZ), which runs until October 9, Filipino consumers will be given the chance to experience a wide range of devices powered by Intel – from notebooks, ultrabooks, tablets, all-in-ones, 2-in-1s and smartphones – in an effort to show them how to make the most out of their lives using technology.

"IEZ is a platform for us not only to bring our innovations closer to consumers, but also to show how these unique form factors can heighten the experiences of different user profiles and personalities,” said Randy Kanapi, Intel marketing manager.

The three-week long exhibit, that started last Friday at SM Megamall in Pasig and Festival Mall in Alabang, features Intel's product partnerships with IT brands Acer, Asus, Dell, HP, Lenovo, Polaroid, Samsung, Sony and Toshiba.

“Through IEZ, we are also able to show them the exponential possibilities of what they can do using computing technology,” he added.

In line with showing Filipinos what technology is capable of, Intel has also launched the Intel Test of Time, which profiles users and matches them with the Intel-powered device that best suits them.

The Intel Test of Time can be accessed through the company's website, intel.ph, and will run until October 31.

Looking towards the future


Intel Philppines Country Manager, Calum Chisholm, said Intel will be partnering with three major local brands in the coming months to provide Filipinos with more affordable tablets.

"We're actually working with vibrant local brands," said Chisholm.

Intel earlier launched a partnership with the local arm of Polaroid to release the Polaroid Elixir 7 and Elixir 10, an Intel-powered tablet which price starts at 6,400.

Chisholm said the products are expected to be released within the fourth quarter of this year. He also hopes that the products will attract more first-time buyers in the country.

"If we can start to offer tablets for P6,400, that's a big jump from an Intel perspective," said Chisholm.

source: www.abs-cbnnews.com

Intel introduces latest Chromebooks

SAN FRANCISCO - Intel Corp plans to deliver new mobile hardware and software technologies--ranging from desktops, processors, tablets and phones--as it aims to help developers make strides in technological innovations.

Intel Corporate Vice President and General Manager Doug Fisher said these tools, technologies and initiatives will help break down barriers around complexity, bringing new opportunities for innovation, collaboration and speed-to-market.

And part of the new line of products introduced was Intel's "Bay Trail," the company's first 22nm system-on-a-phone (SoC) for mobile devices, which will power a range of Android and Windows designs such as tablets and PC/tablet hybrids.

Intel also announced the launch of the 4th generation Intel Core vPro processors for business users, which features enhanced manageability, hardware-based security, improved productivity and collaboration possibilities.

Intel also rolled out their latest Chromebooks, a series of notebook computers which will run on fourth-generation Intel processors.

“As mobility becomes more personal and personalized, Intel is innovating to address this shift by creating a set of new services, user experiences and designs for consumers and also IT (information technology) managers and business users to choose from," said Fisher.

Other announcements included new capabilities added to the Intel cloud services platform and a range of new software tools and capabilities across multiple operating environments, including Android, Chrome and Windows.

“Our strategy is to help ensure Intel offers the best experience across all devices, operating environments and price points,” added Fisher.

source: www.abs-cbnnews.com

Intel inspired by aerospace to make sturdier laptops

SAN FRANCISCO — Engineers at Intel Corp are applying lessons from aircraft design to create sturdier laptops in a bid to reduce the prices of the new ultra-thin computers the top chipmaker is promoting heavily.

Intel is counting on the super-thin laptops, a category it has dubbed ultrabooks, to add some pizzazz to a PC market languishing due to the growing popularity of Apple Inc’s iPad.

Models expected later this year will have large touch screens, “instant on” responsiveness and razor-thin dimensions – all expensive features that have left some on Wall Street wondering if they might be too expensive for average consumers.

Engineers at Intel’s Dupont, Washington R&D center, including former Boeing Co employees, have come up with a design method to make plastic laptop cases as strong as more-expensive metal ones typically used in ultrabooks, said Ben Broili, head of the team.

He said that may cut the cost of future ultrabooks by between $25 and $75 by letting manufactures use plastic cases instead of metal ones without sacrificing quality.

Their work is an example of the steps Intel is taking to find ways to make future ultrabooks more affordable – without cutting the prices of its processors.

At a meeting with analysts last month, Intel Chief Executive Paul Otellini said upcoming ultrabooks would be available for as little as $699, but many are expected to be priced nearer to $1,000 or more.

Borrowing from product design methods used in the aerospace industry, the engineers have found that hard drives, motherboards and other components that make up the guts of a PC can be laid out in ways that make the laptops structure much stronger.

“We didn’t develop a new material. We are able to use an existing plastic with an existing manufacturing technology,” he told Reuters in a telephone interview. “It just requires some more upfront thought initially about how you lay your system out and how you can bring these things together and tie them in.”

Different components in the laptop can be leveraged to support its chassis, or even dissipate heat from the processor, he said.

“There is no one size fits all,” Broili added. “We’re trying to enable the entire industry. You can make trades, move stuff around; and if you don’t want your hard drive here, then move it. You have a menu you can pick from and see what you win or lose from a cost and quality standpoint.”

Typically priced above $200 each, Intel’s processors are the costliest component in laptops. Smaller rival Advanced Micro Devices is selling its new Trinity chips for less in a bid to undercut Intel in thin laptops.

Less flex

Laptops with metal cases tend to be sturdier than laptops with plastic cases, but they cost more.

To get an idea of the structural quality of any laptop, Broili recommends lifting it up by a front corner while it is open and watching how much it flexes.

Intel has already held a seminar in Taiwan to demonstrate its new design technique to PC design engineers and it is promoting it with specific manufacturers.

At the Computex technology show in Taipei, Taiwan, next week, PC manufactures are set to unveil dozens of ultrabooks using Intel’s newest Ivy Bridge processors.

They will also demonstrate future models with touch screens, based on Microsoft Corps’s Windows 8 platform, which is expected out later this year.

Broili said Intel engineers are working on other ways to improve ultrabooks, including tweaks to motherboards, touch screens and Wifi.

Separately, Intel launched a $300 million fund last year to invest in small companies focused on technologies complementing ultrabooks, such as improved battery life.

A few ultrabook models launched this year have been reviewed as nice but pricey, leaving some analysts skeptical the category will attract mainstream shoppers.

Otellini has said Intel is on track to reach its goal that ultrabooks account for 40 percent of all consumer notebooks sold by the end of the year.

Helped by emerging markets, the Ivy Bridge processor and ultrabooks, Intel expects PC shipments this year to grow by a “high-single digits” percentage.

source: interaksyon.com

Intel to buy McAfee in $7.68 billion deal

NEW YORK — Chip maker Intel says it has agreed to buy computer-security software maker McAfee Inc. for $7.68 billion, or $48 per share.

The per-share price represents a 60 percent premium over McAfee's close of $29.93 Wednesday. Shares surged 58 percent to $47.42 after the deal was announced Thursday.

Intel Corp., which is based in Santa Clara, California, said the deal highlights "that security is now a fundamental component of online computing."

Both boards of directors have unanimously approved the deal. The deal still requires McAfee shareholder approval and regulatory clearances.

McAfee is also based in Santa Clara. —AP

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