Intel's Foundry Business Unit: Plans for Profitability and Growth
2023-06-21
On June 21, 2023, Intel Corporation (INTC) held an Internal Foundry Model Investor Webinar Conference to discuss their operational transformation with the Internal Foundry Model. The conference was attended by several key executives, including John Pitzer, David Zinsner, Jason Grebe, Ross Seymore, Vivek Arya, Aaron Rakers, Mark Lipacis, Gus Richard, Ambrish Srivastava, Vijay Rakesh, and Srini Pajjuri.
During the conference, the executives highlighted the key drivers of the business, which are the scale and profitability of the foundry business unit. To achieve this, the company plans to build out the scale of the organization and attract more volume from external customers.
The company's capital spending plans are focused on efficient manufacturing and building out capacity based on demand rather than significant capital expenditures. The executives noted that the company has no significant CapEx increase for bringing on incremental foundry customers online for the Intel Foundry Services business. Instead, they plan to build out according to the demand they receive from their new foundry services customers. Additionally, the company is looking for many other levers to try to drive cost reductions by running their manufacturing footprint more efficiently.
Despite the lack of information provided regarding the company's market share, the executives emphasized the importance of the foundry business unit's profitability. They noted that the company is committed to building out the foundry business unit and increasing its scale to attract more external customers.
Overall, the conference provided insights into Intel Corporation's plans to transform its operations with the Internal Foundry Model. The company's focus on efficient manufacturing and building out capacity based on demand highlights its commitment to profitability and growth. As the company continues to build out its foundry business unit, it will be interesting to see how it attracts more external customers and increases its market share.