Intel dominates the market for chips that power desktop PCs. Its new boss wants to expand its reach
a couple of years since we’ve had you with us,” Bob Swan told Intel’s investors at its Californian headquarters on May 8th. “During that time, a lot has changed.” Not least for Mr Swan. Two years ago he was chief financial officer. Then, in June last year, Brian Krzanich, the firm’s previous boss, resigned after violating rules against romantic relationships between employees.
More recently, however, Intel has made mistakes. It missed the arrival of the smartphone, which has elbowed aside thes, specialised chips designed for video-game graphics which have found other uses accelerating the calculations used inAnd its manufacturing technology, which used to advance with such metronomic regularity that Intel called its business plan “tick-tock”, has stumbled.
That is unlikely to harm Intel directly, since such accelerator chips are complements to its server chips, not replacements. Mr Swan could simply sit back and watch the profits roll in. But as he explained to the audience in California, he hopes to continue Mr Krzanich’s strategy of expanding the firm’s reach. He wants to use Intel’s almost unique position among chipmakers as both designer and manufacturer to mount an assault on both the accelerator market, and on data centres more generally.
With that in mind, the firm has been on a buying spree. In 2015 it bought Altera, which makes reconfigurable server chips, for $16.7bn. In 2017 it acquired Mobileye, which makes computer-vision chips for self-driving cars, for $15.3bn. Internally, it has poured cash into everything from photonics to Optane, a new kind of memory designed to keep chips fed with numbers to crunch.
When it comes to Moore’s Law, fixing things will be harder. Mr Renduchintala has said that, with the “ten nanometre” hiccup, Intel’s renowned engineers simply bit off more than even they could chew. The company insists it can carry on shrinking its chips for some time yet. But the physics will only get more finicky and expensive. As Moore’s Law slows, and engineers look elsewhere for performance improvements, the chip industry will become even more fragmented.
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