100 Companies Want Intel to Make Their Chips Says Intel CEO

According to Intel CEO Pat Gelsinger, who spoke to Yahoo Finance Live, there are over 100 companies who want his company to produce Intel chips.

“The industry needs the supply. Intel is stepping into that with leading-edge technologies for a globally balanced supply chain. This is good for the United States and it’s good for the tech industry,” Gelsinger said.

Intel had announced this week it will begin making chips for Qualcomm and Amazon. Gelsinger declined to share the value of the deals, but highlighted that the foundry business is a more than $100 billion market.

It was earlier this year that Intel committed itself to making chips for other companies in a bid to increase industry capacity. This decision was near the start of Gelsinger’s tenure as CEO.

The company is also investing $20 billion to build new factories in Arizona.

According to a recent Wall Street Journal report, the company was eyeing a purchase of chipmaker GlobalFoundries for $30 billion, who is among the biggest specialist players in the chip industry.

GlobalFoundries had been spun out of Advanced Micro Devices in 2008. It still counts AMD as a key customer.

“I do think consolidation will happen, and I think we will be a consolidator in that journey,” Gelsinger.

“I have set a goal that by the end of the decade we want to be the No. 2 player in that market,” said Gelsinger. “We expect this becomes a large growth opportunity for Intel over that period.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.