Chief executive of Intel Corp (Intel Corp.N), the largest U.S. chipmaker, said the company was cutting its focus on buying back its own shares.
Intel Chief Executive Pat Gelsinger said in an interview with CBS News magazine “60 Minutes”; that will air on Sunday night.
Gelsinger’s comment answers a comparing question of how much Intel spends buying its own stock versus investing in research and development.
The global shortage of semiconductor chips, critical in cars, laptops and other major consumer products, has made Intel, the only major US chipmaker.
In the first quarter, Intel spent $ 2.3 billion on buying back shares, according to Bloomberg, which first reported Gelsinger’s comments.
The new CEO said in March that Intel would spend up to $ 20 billion to build two new plants in Arizona, which would greatly expand its advanced chip capacity. Most of the chips are now produced in Asia.
According to a “60-minute” interview memo, Gelsinger said Intel was planning to configure some factories to produce chips for Ford Motor Co (FN), General Motors Co (FN) and other automakers to cut production due to problems. Shortage
Intel’s board of directors supports the move to reduce share buybacks, Gelsinger said.
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