(Reuters) – Intel Corp on Wednesday slashed its dividend to its lowest level in 16 years and announced a sharp cut in investment amid slowing demand for its semiconductors.
Chief Executive Pat Gelsinger said Intel would pause major investments, in the tens of billions of dollars, in new manufacturing equipment and facilities, while expanding its foundry business.
The company, which reaffirmed its first-quarter guidance issued in January, said it would cut the dividend to 50 cents per share annually or $0.125 per share quarterly, a 66% drop from its last payout. .
Intel has pledged to cut costs by $3 billion this year, aiming to save between $8 billion and $10 billion by the end of 2025.
Pat Gelsinger now expects net capital expenditure intensity, or the amount spent to generate a dollar of revenue, to be in the “lower 30%” this year, down from 35 % planned previously.
The Intel stock, which lost about half its value last year, was up about 3% in early trading.
(Report Nivedita Balu in Bangalore and Jane Lanhee Lee, Augustin Turpin)
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