The US-based firm also saw costs rise and margins shrink as
it shifted to a more sophisticated line of semi-conductors, analysts noted.
"The fourth quarter represented a great finish to a
great year," said Intel chief executive Pat Gelsinger.
Intel revenue for last year tallied $79 billion, some $20.5
billion of which it took in during the final three months, according to its
earnings report.
Profit in the quarter was $4.6 billion, however, in a 21
percent decrease from the same period a year earlier, AFP said.
Profit for 2021 totaled $19.9 billion, about five percent
less than the net income in the prior year.
Last year was marked by "unprecedented demand tempered
by supply chain constraints" that are expected to continue through into
next year, Gelsinger said during an earnings call.
A global computer chip shortage has afflicted a broad array
of industries from smartphones and laptops to cars and home appliances.
US chip giant Intel finds itself at the heart of this
phenomenon, benefiting from heightened demand but facing challenges producing
ever more sophisticated semiconductors driving modern devices.
Intel has invested heavily in semiconductor production in
the United States and Europe over the past year, with a recently announced
strategy that relies on expanding in-house manufacturing and increased use of
subcontracted factories.
US lawmakers were studying proposals Wednesday to jumpstart
high-tech research and manufacturing, boost competition with China and ease a
global shortage of crucial computer chips.
The House Democrats' "America Competes" bill is
their version of the Senate's $200 billion US Innovation and Competition Act,
aimed at addressing supply bottlenecks.
Whether bi-partisan support needed will manifest in an
election year remains to be seen, said analyst Rob Enderle of Enderle Group.
"With the chips act going on the floor of the House, we
are highly encouraged," Gelsinger said on the earnings call.
"We are optimistic on this coming across the
line."
US President Joe Biden has praised Intel's plans to spend
$20 billion on a new US semiconductor facility, hailing the
"historic" investment.
Biden is urging manufacturers to bring production back to
the United States, which was once a leader in making the chips which have
become scarce during the pandemic.
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