Majority of Intel products to be manufactured internally by 2023," said Gelsinger

With the increased competition from AMD, Nvidia and other fabless semiconductor companies on embracing alternative processor architectures. The incoming CEO, Pat Gelsinger, who is taking over from Bob Swan, spent a few minutes during the conference call with analysts, emphasizing that Intel will hold onto its manufacturing facilities rather than outsource everything. "I am confident that the majority of our 2023 products will be manufactured internally," said Gelsinger. He said that, he has had some time to review Intel's work on making 7-nanometer chips. Those chips have seen multiple delays over the years, the most recent one in July.

Intel's new 7 nanometer chip technology is behind schedule and in the future the company could consider outsourcing more work to other semiconductor manufacturers. Intel's Ponte Vecchio, a data center graphics chip may not be released until early 2022 and the first 7nm chips meant for personal computers and data centers may not arrive until early 2023. Analysts have predicted that the delay could result in competitor Taiwan Semiconductor Manufacturing Co Ltd (TMSC) remaining a generation of technology ahead of Intel in the coming years.

Intel is the top supplier of processors for PCs and data centers but has recently seen strong competition from companies like Advanced Micro Devices (ADM) and Nvidia Corp who outsource their manufacturing to TMSC.

Nvidia has seen strong sales from the data center market while AMD plans to release its new Ryzen 4000 G Series of desktop processors this year. Meanwhile, Apple has announced that it will transition away from using Intel chips in MAC computers after almost 15 years. The company intends to instead use chip technology from ARM Ltd.

The company projected that its first-quarter revenue for 2021 will be $17.5 billion, a 12 percent decrease from the same period last year, with PC-based sales expected to be up in the low single digits and data-centric sales down by roughly 25 percent.

Intel’s stock price was up 6.46 percent before market close Thursday due to the company’s earnings coming out earlier than usual, but in after-hours trading, the stock price decreased 4.4 percent.