Demand for data equals demand for a lot more chips, and Intel is warming up its foundries.
Microprocessor giant Intel reported fourth-quarter revenues of $18.7bn for 2018, up 9pc year over year.
The strong quarter generated a profit of $5.2bn, compared with a loss of $700m the previous year.
‘We are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products’
– BOB SWAN
For the full year 2018, the company reported $70.8bn in revenues, which delivered a profit of $21.1bn.
In 2018 it generated $29.4bn cash from operations and $14.3bn of free cash flow, returning nearly $16.3bn to shareholders.
“2018 was a truly remarkable year for Intel, with record revenue in every business segment and record profits as we transform the company to pursue our biggest market opportunity ever,” said Bob Swan, chief financial officer and interim CEO.
“In the fourth quarter, we grew revenue, expanded earnings and previewed new 10nm-based products that position Intel to compete and win going forward. Looking ahead, we are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products.”
From PC-centric to data-centric
The company reported gains in its PC-centric business with revenue of $37bn for 2018, while revenues in its data-centric business groups, including memory and programmable solutions, were $4.3bn and $2.1bn respectively.
It revealed that its upcoming 10nm PC processor will be in OEM (original equipment manufacturer) and on shop shelves for the Christmas sales in 2019.
The company’s ambitions for dominance in autotech continue with its Mobileye subsidiary reporting Q4 revenue of $183m, up 43pc year over year after achieving 28 new design wins and 78 vehicle model launches. Intel acquired Mobileeye in 2017 for $15.3bn.
In recent weeks Siliconrepublic.com reported how Intel is on the verge of a major manufacturing expansion at its facility in Kildare after winning planning permission for the project. The project could yield more than 3,000 construction jobs and 850 full-time technician roles when completed.
In December, Intel’s senior vice-president and general manager of manufacturing and operations, Irishwoman Ann Kelleher, announced that Intel planned to expand its major wafer fab sites in Ireland, Israel and Oregon to pursue a $300bn annual available chip market.
Intel sign. Image: alexeynovikov/Depositphotos