IDC has issued a study providing a comprehensive look at the steps Intel is taking to reposition the company to provide solutions that supply larger, higher-growth markets. The industry research firm's analysis shows Intel has increased its serviceable addressable market (SAM) by 45% since it began its business unit reorganization. IDC predicts Intel's SAM to grow at a 7.2% compound annual rate through 2027 to reach $500 billion.
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"We have been methodically executing to reposition Intel into higher-growth opportunities - with foundry, discrete GPUs, AI accelerators and others - and away from low-growth segments, including memory, connected home and cellular modems. We are very pleased with the progress of our IDM2.0 strategy and remain on track to regain technical and manufacturing leadership, and to become a major provider of foundry capacity. We believe we are well positioned for near-term and long-term growth."
-Safroadu (Saf) Yeboah-Amankwah, Intel senior vice president and chief strategy officer
Why It Matters:
By moving into faster-growth markets with a broad range of products and services, Intel is positioning itself for returning to growth. Rather than offering single chips serving a single function, like processing or moving data for PCs and data centers, Intel's businesses offer holistic solutions that use multiple semiconductor, software, hardware and service components based on customer requirements and demands of the markets they serve.
What's Next:
Intel has commissioned IDC to conduct independent research and issue similar reports through the year to track Intel's progress, including its share of markets. They will focus on topics including internal and external foundry models, artificial intelligence and others.
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