Technology

New Intel CEO sets goal to outperform Apple processors

Intel’s new CEO Pat Gelsinger doesn’t take up his new role until February. But he didn’t want to miss the opportunity to make a very clear statement of intent. They can’t be beaten by a company like Apple.

Apple shouldn’t outperform Intel in processors

The Oregonian, a local Oregon newspaper where Intel maintains a strong presence, is behind this news. He reports that the chipmaker held a company meeting yesterday and that Gelsinger was in attendance.

“We need to deliver better products to the PC ecosystem than anything a lifestyle company in Cupertino can do,” Gelsinger told Intel employees. “We have to be so good in the future.”

We have already told you how Intel recently faced increased competition from Apple and AMD. Apple announced its transition to its own processors in June, calling it “a historic day for the Mac.” The transition has gone smoothly, with M1-based Macs offering impressive performance and great battery life compared to existing Intel-based Macs.

Although Apple will continue to use Intel chips for some Macs in the future, it is of great importance to stand out from those in Santa Clara. If we add to this that AMD has wrested from Intel’s leadership in games and wants to seize the portable market with its new Ryzen 5000… Gelsinger has a lot of work to do to recover the company.

Intel announced earlier this week that current CEO Bob Swan will step down on February 15. His replacement will be current VMware CEO Pat Gelsinger. This marks a return to the business for Gelsinger, who previously worked at the chipmaker for 30 years.

Manufacturing, a problem to be solved

Gelsinger now faces the reality of competing with Apple, AMD, and others, after Intel struggled to switch to a 10nm manufacturing process for years. They have also delayed their 7nm chips at least until 2022. The Santa Clara giant faces a tough decision to outsource chip manufacturing, or at least part of it.

It’s a move the company had planned to make next week, but The Oregonian reports it could be delayed to give Gelsinger time to weigh the choice. Bloomberg News recently reported that Intel is in talks with TSMC and Samsung to outsource some of the chip production. Market research firm TrendForce says around 20% of Intel’s non-CPU chips will now be outsourced to TSMC and UMC.

Analysts say outsourcing its own production of processors would allow Intel to be more flexible and focus on its designs to recover from the 10nm issues it has encountered. Apple, AMD, Qualcomm, MediaTek and other competitors already use TSMC for chip production.

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