Intel will 'focus' less on buying back company stock: CEO Pat Gelsinger
NEW YORK (Reuters) - The chief executive of the biggest U.S. chip-maker, Intel Corp, said the
company is going to curb its focus on buying back its own stock.
"We will not be anywhere near as focused on buybacks going
forward as we have in the past," Intel Chief Executive
Officer Pat Gelsinger said in an interview on the CBS news magazine "60
Minutes" to air on Sunday night.
Gelsinger's comments were in response to a question comparing how
much Intel has
spent buying its own stock compared to its investment in research and
development.
A global shortage of semiconductor chips,
critical in cars, laptops and other major consumer products, has put a
spotlight on Intel, the only major U.S. chip manufacturer.
In the first quarter, Intel spent $2.3 billion on share
repurchases, according to Bloomberg, which first reported Gelsinger's comments.
The new CEO said in March that Intel will spend up to $20 billion
to build two new factories in Arizona, greatly expanding its advanced chip
manufacturing capacity. The majority of chips are currently produced in Asia.
According to a transcript of the "60 Minutes" interview,
Gelsinger said Intel is also planning to reconfigure some factories to make
chips for cars. Ford Motor Co, General Motors Co and other automakers have cut
production due to the shortage.
Intel's board of directors support the move to curtail stock
buybacks, Gelsinger said.
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