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Intel Shares Drop, Problems Delay Next-Gen Chip 2022

Shares in component manufacturer Intel have slumped over 10% in after-hours trading, after the company revealed its next-generation 7-nanometer chips would be delayed until 2022.

Similar chips are already purchasable via AMD, with the news of Intel’s delay sending the competitor’s shares up 8%.

Intel has announced the launch of its next-gen semiconductor tech will be pushed back by at least six months, potentially also using a third-party manufacturer as a contingency plan.

The delay follows an identified flaw in the development of the 7-nanometer chip, leading to yield degradation.

“We’ve root-caused the issue and believe there are no fundamental roadblocks, but we have also invested in contingency plans to hedge against further schedule uncertainty,” said Intel Chief Executive, Bob Swan in a conference call.

Contingency plans may include utilising another vendor’s foundry, with AMD reportedly harnessing Taiwan Semiconductor Manufacturing Co for its 7-nm chips.

Intel states it expect to ship its first 7-nm CPU chips in late 2022, or even early 2023, with product releases to follow.

Despite the component delay, Intel has fared strong demand for server and PC componentry during the coronavirus pandemic, with Q2 revenue notching US$5.1 billion – up from US$4.18 billion last year.

Q2 revenue jumped 20% to US$19.7 billion in the year-ago quarter.

The company has increased 10-nanometer base product shipments for the year by more than 20% verus forecasts in January.

 

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