Intel posted billions in profits

San Jose, California (dpa) — Intel returned to profitability in the third quarter, thanks in part to lower losses in manufacturing.

The chipmaker on Thursday reported a net income of $4.1 billion after a loss of $16.6 billion a year earlier. Total net revenue rose 3% to $13.7 billion.

In the quarter, Intel received billions of dollars in financial injections from the US government and its rival Nvidia. The company also sold the specialist supplier Altera.

Lip-Bu Tan, who has been chief executive officer for several months, has embarked on a tough austerity programme. The number of employees went from 96,400 to 83,300 within three months. Only 3,300 of these were due to the split from Altera.

The operating loss in Intel’s manufacturing arm, Intel Foundry Services, fell to $2.3 billion from just under $5.8 billion a year earlier.

California-based Intel is facing increasing pressure in its traditional business of PC processors and chips for data centres. The company is attempting to establish a second pillar as a contract manufacturer for other semiconductor providers, in addition to producing its own chips.

However, progress has been slow. Plans for a large factory in the German city of Magdeburg were abandoned due to a lack of demand.

Intel, which once dominated the semiconductor market, has been struggling for years. In the field of chips for artificial intelligence, the graphics card specialist Nvidia has taken a leading position.

Intel shares rose by more than 7% in after-hours trading.