Intel Hints At Licensing Amid Collaboration with Honor

Mar, 2021 - By WMR

Intel partners with Chinese phone maker company, Honor, and pledges to regain its position as lead manufacturer in chip-making.

The largest semiconductor-chip manufacturer in the world, Intel Corporation, confirmed to have increased its yearly business by 33% with majority of the contribution coming from sales of Intel Notebook. The company reported that it has generated a revenue of US$ 20 billion in the fourth quarter of 2020 and made a profit of US$ 6 billion.

In November 2020, Chinese multinational company, Huawei Technologies sold its partnering company, Honor, in a bid to restart its sourcing components that were abandoned by the U.S. Honor has delivered over 13 million phones in the third quarter of 2020, which accounted around 25% of the total deliveries of Huawei. The phone business of Huawei was vandalized when the U.S. restricted the access of the company to export its products in North American Continent.. After parting ways from Huawei Technologies, Honor signed a deal with chip-making companies Intel and Qualcomm.

In recent years, Intel was over-taken by Korean and Taiwanese companies as the lead chip-manufacturing company. On January 22^nd, some of the executives from Intel Corporation revealed about the speculations taking place to license a chip-making technology that will eliminate the need to rely on outsourcing deals. But this licensing will take place if all the rival chip-manufacturing companies agreed to it. Outsourcing deals have reduced the market capital of Intel by 5%. These deals created disputes among the investors with most of them criticizing the same.

Intel’s soon-to-be CEO, Pat Gelsinger, is committed to restoring the position of the company as a leader in the chip-manufacturing industry. Gelsinger added that most of the company’s products will be manufactured internally by 2023. Investors are worried about the fate of the company while some are expecting it to enter strategic partnerships with other chip-making companies. Intel is planning to spin-off its manufacturing model and minimize the outsourcing of its production.