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Behind Intel Corp.’s multi-billion dollar recovery plan is a growing view among technology executives that the growing demand for computer chips will continue beyond the pandemic.
Intel on Tuesday committed to a record $ 19 billion to $ 20 billion in capital expenditures this year, or about 45% above the company’s average annual capital expenditures for the past five years.
Taiwan Semiconductor Manufacturing Co., the world’s leading contract chip maker, pledged in January to spend up to $ 28 billion on plant investments this year, a record for that company and an annual increase of 47%.
“Everything is getting more digital and we are saying that Intel is aggressively entering that gap to help provide the capacity that is needed,” Intel CEO Pat Gelsinger said Tuesday as he implemented his turnaround plan for the company. The adoption of more digital tools fueling that demand, he said, was only accelerated by the pandemic.
Microsoft Corp. CEO Satya Nadella, joining his Intel video counterpart in launching the chipmaker’s strategy, said “We are entering a whole new era as computing is integrated into our world.” .
