From Tom's Hardware: Intel on Wednesday said that its board of directors had reset its dividend policy to reduce quarterly dividend payments in a bid to maintain spending on new manufacturing capacity that is set to be deployed in the coming years, something that the company considers critically important. The decision is meant to ensure that the company will have enough financial flexibility amid dropping revenue and profits.
Starting from June 1, 2023, Intel will pay $0.125 per share quarterly on the company's common stock, which means that the company will pay investors $2 billion instead of $6 billion this year. The company has reconsidered its dividend policy for the first time since 1992 amid major challenges that it faces in the short term and long-term future.
Intel said on Wednesday that it would prioritize investment in strategic capital and alter the timing of near-term capacity expansion in response to lower demand for its products in the short term. Essentially, this means that Intel will prepare for future expansions (i.e., build fab shells) and delay procurement of certain wafer fab equipment if possible.
"Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine," said Pat Gelsinger, CEO of Intel. "We remain on track to deliver five nodes in four years and continue to expand the IFS (Intel Foundry Services) customer base."
View: Full Article
