revenue of $18.6bn for the first quarter of 2021, which it said was led by strength in its PC business and the first signs of recovery in the enterprise and government portion of its data centre business.
These signs ofdelivered revenue of $5.6bn, down 20% year-over-year. Intel also said the datacentre business experienced a drop in operating income to $2.2bn year-over-year revenue, transition to 10-nanometer, and increased R&D investment in its Xeon roadmap.
In a transcript of the earnings call posted on the, the company discussed the recent news about its foundries. In March, , beginning with about $20bn of investment to build two fabrication plants in Arizona. The company also plans to become a significant provider of foundry capacity in the US and Europe to serve its customers globally.
When asked about the competition coming fromand whether Intel would consider licensing its x86 technology in a similar way to ARM to entice hyperscale cloud providers, CEO Pat Gelsinger said: “X86 cores will be available on our foundry services and available for people to design with them, and it will include the cloud service providers to take advantage of that.
“So, the simple answer is yes. And we believe that the ability for our customers to take advantage of x86 this way will be a meaningful shift in howthink about ARM versus x86.”
He said this would enable Intel’s customers to design their x86-based chips similarly to how ARM licensees build processors based on the ARM chip.
Gelsinger admitted that Intel has previously not catered exceptionally well to organizations that wanted to do unique design work. “They didn’t have a good x86 choice,” he said. “We gave them our standard products, which have lots of capabilities but particularly for the cloud.”
But other networking or memory hierarchy optimizations were not possible with the standard x86. , said Gelsinger.
“We are saying come on in, and we are opening the doors of our IP, the doors of our leading process and, to be able to say let’s do this together or let them do their designs in our foundry as well,” he said. “It’s a compelling strategy that will be a meaningful shift.”
Gelsinger said the company also saw “extreme interest” in Intel packaging technologies. For example, he said customersor TSMC with an Intel tile on a single semiconductor device.
Intel chief financial officer George Davis suggestedwould evolve to encompass standard semiconductor libraries. We have said over time that it’s apparent that we will be adopting more and more of the industry ecosystem IPs and libraries because it makes sense to do it,” he said during the . “And it makes sense in terms of , in terms of taking advantage of capabilities that already exist out there.”