What’s New: IDC has issued a study providing a comprehensive look at the steps Intel is taking to reposition the company to provide solutions that supply larger, higher-growth markets. The industry research firm’s analysis shows Intel has increased its serviceable addressable market (SAM) by 45% since it began its business unit reorganization. IDC predicts Intel’s SAM to grow at a 7.2% compound annual rate through 2027 to reach $500 billion.
“We have been methodically executing to reposition Intel into higher-growth opportunities – with foundry, discrete GPUs, AI accelerators and others – and away from low-growth segments, including memory, connected home and cellular modems. We are very pleased with the progress of our IDM2.0 strategy and remain on track to regain technical and manufacturing leadership, and to become a major provider of foundry capacity. We believe we are well positioned for near-term and long-term growth.”
Why It Matters: By moving into faster-growth markets with a broad range of products and services, Intel is positioning itself for returning to growth. Rather than offering single chips serving a single function, like processing or moving data for PCs and data centers, Intel’s businesses offer holistic solutions that use multiple semiconductor, software, hardware and service components based on customer requirements and demands of the markets they serve.
What’s Next: Intel has commissioned IDC to conduct independent research and issue similar reports through the year to track Intel’s progress, including its share of markets. They will focus on topics including internal and external foundry models, artificial intelligence and others.
More Context: Read the IDC analysis, “Intel’s Business Transformation Addresses Largest Market Opportunities.”
Forward Looking Statements: Statements herein that refer to business outlook, plans, and expectations are forward looking statements that involve risks and uncertainties. Such statements may include those regarding our addressable market, business plans and strategies to reposition Intel, progress on our IDM 2.0 strategy, efforts to regain technical and manufacturing leadership, plans and expectations for a foundry business, and positioning for future growth. Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including: changes in demand for our products; changes in product mix; the complexity and fixed cost nature of our manufacturing operations; the high level of competition and rapid technological change in our industry; the significant upfront investments in R&D and our business, products, technologies, and manufacturing capabilities; vulnerability to new product development and manufacturing-related risks, including product defects or errata; risks associated with highly complex global supply chain; sales-related risks; potential security vulnerabilities in our products; cybersecurity and privacy risks; investment and transaction risk; IP risks and risks associated with litigation and regulatory proceedings; evolving regulatory and legal requirements across many jurisdictions; geopolitical and international trade conditions; our debt obligations; risks of large scale global operations; macroeconomic conditions; impacts of the COVID-19 or similar such pandemic; and other risks and uncertainties described herein and in our earnings release dated April 27, 2023, our 2022 Annual Report on Form 10-K, and our other filings with the SEC. All information in this presentation reflects management’s views as of the date hereof, unless an earlier date is specified. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.