Business

Intel revenue falls in Q1 as tech sector struggles with chip shortage

CEO says company has $1T market opportunity as it expands capacity in US, Europe

US-based global chipmaker Intel saw its revenue decline in the first quarter of 2022 as the tech industry struggles with chip shortages and supply chain issues.

The company had revenue of $18.4 billion in January-March, down 6.6% from $19.7 billion in the same period of last year, according to its financial results statement released late Thursday.

Net income, on the other hand, soared 138% to $8.1 billion, from $3.4 billion, year-on-year.

Amid global chip shortages, CEO Pat Gelsinger said in the statement that the company has “a $1 trillion market opportunity,” as it is expanding manufacturing capacity in both the US and Europe to meet demand for semiconductors and drive a more resilient global supply chain.

Intel announced in March that it will make an initial investment of more than €33 billion ($36.2 billion) in semiconductor manufacturing, research, and development in Europe.

The plan aims to invest as much as €80 billion ($87.9 billion) in the EU through the next decade in the entire semiconductor value chain.

Gelsinger announced in March that Intel will also invest $20 billion in two new factories in the US state of Arizona.

Since the beginning of the coronavirus pandemic, the global economy has faced a semiconductor shortage.

The chip crisis affects 169 industries in one way or another, according to US multinational investment bank and financial services company Goldman Sachs.

Global semiconductor sales reached an all-time high in 2021 as the industry increased production amid shortages, according to the Semiconductor Industry Association (SIA).

Industry sales totaled $555.9 billion in 2021 around the world an increase of 26.2% compared to $440.4 billion in 2020.

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