Technology CEOs who truly value innovation are scarce. It is far easier to give investors near-term profits than to reinvest a significant portion of profits in R&D activities that may not drive long-term ROIC (Yes, risk is involved which requires courage and conviction). The chip business is no exception. New Intel (tkr: INTC), CEO Pat Gelsinger is not one to shy away from investing in tomorrow. See below for Intel’s keynote speech by Mr. Gelsinger as the Company pursues its new investment strategy for regaining its leadership perch atop the chip industry. We believe Intel faces an uphill battle as the most cutting-edge chip designs (Design is where innovation happens), will increasingly be designed by Tech giants such as Alphabet (think Google’s TPU for TensorFlow as an example). However, if Intel is to remain relevant 20 years from now heavy investment in chip design is a must.
- Intel Announces $20 Billion Investment for Two New Arizona Fabs: click HERE