CNBC News, July 3rd – In a significant strategic pivot, Intel, under the leadership of its new CEO Pat Gelsinger, is reportedly re-evaluating its internal development initiatives, signaling a potential shift away from its proprietary glass substrate technology in favor of external sourcing. This move is part of a broader reform agenda aimed at streamlining operations and accelerating product innovation.
The chip giant is said to be considering discontinuing its in-house development of glass substrate technology, a move that could mark a departure from years of investment in this cutting-edge area. While this decision would mean relinquishing its hard-won technological edge in glass substrates, it promises to significantly shorten product development cycles and mitigate the financial risks associated with pioneering new technologies.
Glass substrates represent a key advancement in semiconductor packaging, poised to supersede traditional substrate materials. Intel had previously established a leading position in this field, positioning itself to further solidify its dominance in advanced packaging. However, Gelsinger appears to be opting for a more pragmatic approach, prioritizing the rapid acquisition of mature solutions through external partnerships to concentrate valuable resources on the research and development of its core product lines.
The strategic overhaul initiated by Gelsinger extends beyond technology development. It includes a sharp focus on core business operations, a revitalization of the leadership team, the infusion of new engineering talent, and a concerted effort to trim what is perceived as an overly bureaucratic middle management layer, including targeted workforce reductions where necessary.
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