Alan W. Dowd is a Senior Fellow with the American Security Council Foundation, where he writes on the full range of topics relating to national defense, foreign policy and international security. Dowd’s commentaries and essays have appeared in Policy Review, Parameters, Military Officer, The American Legion Magazine, The Journal of Diplomacy and International Relations, The Claremont Review of Books, World Politics Review, The Wall Street Journal Europe, The Jerusalem Post, The Financial Times Deutschland, The Washington Times, The Baltimore Sun, The Washington Examiner, The Detroit News, The Sacramento Bee, The Vancouver Sun, The National Post, The Landing Zone, Current, The World & I, The American Enterprise, Fraser Forum, American Outlook, The American and the online editions of Weekly Standard, National Review and American Interest. Beyond his work in opinion journalism, Dowd has served as an adjunct professor and university lecturer; congressional aide; and administrator, researcher and writer at leading think tanks, including the Hudson Institute, Sagamore Institute and Fraser Institute. An award-winning writer, Dowd has been interviewed by Fox News Channel, Cox News Service, The Washington Times, The National Post, the Australian Broadcasting Corporation and numerous radio programs across North America. In addition, his work has been quoted by and/or reprinted in The Guardian, CBS News, BBC News and the Council on Foreign Relations. Dowd holds degrees from Butler University and Indiana University. Follow him at twitter.com/alanwdowd.

ASCF News

Scott Tilley is a Senior Fellow at the American Security Council Foundation, where he writes the “Technical Power” column, focusing on the societal and national security implications of advanced technology in cybersecurity, space, and foreign relations.

He is an emeritus professor at the Florida Institute of Technology. Previously, he was with the University of California, Riverside, Carnegie Mellon University’s Software Engineering Institute, and IBM. His research and teaching were in the areas of computer science, software & systems engineering, educational technology, the design of communication, and business information systems.

He is president and founder of the Center for Technology & Society, president and co-founder of Big Data Florida, past president of INCOSE Space Coast, and a Space Coast Writers’ Guild Fellow.

He has authored over 150 academic papers and has published 28 books (technical and non-technical), most recently Systems Analysis & Design (Cengage, 2020), SPACE (Anthology Alliance, 2019), and Technical Justice (CTS Press, 2019). He wrote the “Technology Today” column for FLORIDA TODAY from 2010 to 2018.

He is a popular public speaker, having delivered numerous keynote presentations and “Tech Talks” for a general audience. Recent examples include the role of big data in the space program, a four-part series on machine learning, and a four-part series on fake news.

He holds a Ph.D. in computer science from the University of Victoria (1995).

Contact him at stilley@cts.today.

Intel sees prolonged chip-supply constraints

Friday, April 23, 2021

Categories: ASCF News Cyber Security

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Intel Corp. ’s new chief executive said a global chip-supply shortage could stretch two more years as the U.S. semiconductor giant posted weaker quarterly earnings.

Pat Gelsinger said the supply constraints that have affected some sectors of the global economy for months will continue until more capacity comes online to meet chip demand for everything from automobiles to electronics.

"This will take a while until people can put more capacity in the ground," he said in an interview. "It’s just the way it is when you’re building new factories."

The CEO, who is fast-tracking efforts to re-energize the company, said the outlook projecting sales of $77 billion this year, $500 million higher than previously expected, is a "supply constrained guide" for the year.

Intel on Thursday said first-quarter sales fell 1% to $19.7 billion. Net income, weighed down by costs of a legal settlement, was $3.4 billion. Excluding the pending sale of its memory business and other items, Intel said revenue was $18.6 billion and net income was $5.7 billion. Wall Street on average expected the company to report first-quarter sales to $18.6 billion, including sales from the memory business, and net income of $4.3 billion, according to analysts surveyed by FactSet.

Intel’s stock fell around 1.3% in after-hours trading.

Mr. Gelsinger this month laid out an ambitious strategy for Intel to become a major contract chip maker in addition to making semiconductors to satisfy its in-house requirements. The plan includes a $20 billion spending commitment to build two new semiconductor plants in Arizona. "This is a pivotal year for Intel," he said Thursday.

The CEO, on the job since February, also pledged to make some production capacity available swiftly to help alleviate a broader shortage of chips that has caused disruptions across a range of industries, in particular car production.

The White House this month met with executives from the chip and other industries to help determine what action it should take to address the shortage and strengthen the domestic chip-building industry. President Biden previously pledged to fix the chip shortages and included $50 billion for the semiconductor industry in his expansive infrastructure-spending package.

Intel also has said it would increase outsourcing of some chip production to keep pace, he said.

The company also is contending with increased competition. Nvidia Corp. —which last year overtook Intel as American’s most valuable chip company—and Advanced Micro Devices Inc. have taken market share. Nvidia this month also said it would start selling central-processing units for data-centers, a market Intel has long dominated. Intel this month introduced an enhanced data-center chip.

Mr. Gelsigner said despite projecting slower sales growth than its rivals, Intel aims to recapture lost ground. "We are out to gain market share," he said.

Intel had $5.6 sales in the data-center business, missing analysts' expectations of $5.9 billion in sales. Profitability of that business was hammered by research and development spending, the company said, and costs associated with ramping up production of a new chip.

Intel’s effort to become a contract chip maker also isn’t without hurdles. The company has tried to break into that market before, with little success. And its chief rivals, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., are readying their own multibillion-dollar spending plans to expand. TSMC last week raised its capital-expenditure plan for this year to $30 billion while lifting its sales forecast. Samsung has earmarked $116 billion in investment by 2030 to diversify chip production.

Mr. Gelsinger has said Intel is planning additional chip investments. The company could benefit from the bipartisan support in Washington for U.S. chip companies. For instance, Intel is bidding on a Pentagon contract to help fund domestic chip-making to meet government security needs.

Intel said it expects revenue for the current quarter of $18.9 billion.

Photo and link: https://www.foxbusiness.com/technology/intel-ceo-sees-prolonged-chip-supply-constraints

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