set out on Monday the next phases of its new manufacturing strategy — a master plan that doubles the chipmaker’s strengths.
Shares of Intel (ticker: INTC) fell 2.1% to $53.13 during extended trading. The stock was up 2.5% to $54.31 during the regular session; the PHLX Semiconductor index fell 0.1%.
In a video presentation, CEO Pat Gelsinger described progress over the next four years, from rebranding manufacturing processes to implementing new technologies that help package the printed silicon chips into a finished product.
“We are leveraging our unparalleled pipeline of innovation to deliver technological advances from the transistor to the system level,” said Gelsinger.
The plans, which began rolling out earlier this year, include a greater reliance on chip printing technology known as extreme ultraviolet lithography, or EUV. The company will ship EUV chips in 2023 and begin production of a second-generation processor in the second half of that year.
Intel said it had developed a new transistor architecture – the first since 2011 – that will offer better performance, and a separate technology that will optimize power delivery. Both will be released in 2024.
The company also announced packaging improvements that will make Intel chips more powerful and efficient.
Part of the plan calls for the renaming of various production techniques, called nodes in the industry jargon. The new labels for the nodes will be similar to those of competing contract chip makers such as:
Taiwan semiconductor manufacturing
the company said.
The designations were intended in nanometer level increments, such as ‘7 nanometer’ and ’10 nanometer’. Intel argued that making distinctions based on nanometers was irrelevant because the names no longer refer to the technology behind them, confusing customers and investors alike.
For example, the company’s next-generation node will be renamed Intel 4 from 7 nanometers. Intel said the chips produced with Intel 4 will be in production in the second half of next year and will ship in 2023.
Until recent years, Intel’s advantage over rivals such as:
Advanced Microdevices (AMD)
was in its ability to both design and manufacture its own chips. Investors loved the thick margins that came from that autonomy. But Intel struggled with delays related to two generations of manufacturing techniques, challenging the traditional stock position.
Gelsinger, who took over the reins from former CEO Bob Swan earlier this year, led the strategy. Shortly after getting a new chief, Intel said it planned to invest even more in its manufacturing capabilities and promised to regain its position as a perceived industry leader.
Not disclosed on Monday were Intel’s reported plans to acquire contract chipmaker Globalfoundries for a $30 billion acquisition. The deal could boost Intel’s newly announced contract chip manufacturing business with a range of customers, a sales force and several additional factories.
Write to Max A. Cherney at Max.Cherney@barrons.com.