This story was delivered to BI Intelligence IoT Briefing subscribers. To learn more and subscribe, please click here.
Intel’s profits last quarter fell by 51% as the microchip giant spent $1.4 billion on restructuring.
These costs, which included earlier job cuts, are part of the company’s move to reposition its product offerings away from PCs and towards cloud and the IoT.
Intel is trying to position itself as a major provider of microchips for various IoT devices. BI Intelligence projects that the global installed base of IoT devices will grow from 4.2 billion in 2015 to 24 billion in 2020. IoT devices have different requirements from traditional PC microchips, and Intel has been placing a greater emphasis on providing low-power chips at a low cost in the IoT space.
At the same time, changing demands are altering seemingly fundamental laws of chip development. The Semiconductor Industry Association (SIA) projects that transistor sizes will stop shrinking after 2021. With the shift to mobile, remote, and battery-operated devices, including those that are central to the IoT, low power consumption has become one of the main requirements for microchips.
This goal is in conflict with the traditional aim of scaling down the size of the chips to increase transistor density. The increase in IoT devices will raise the demand for greater power efficiency in chips, causing a major shift in microchip design for Intel and its competitors.
The IoT Revolution is picking up speed and when it does, it will change how we live, work, travel, entertain, and more.