Intel's annual median pay has been stagnant compared to peers like Nvidia and Microsoft
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- Intel's median employee pay rose 4% in five years, lagging behind other tech firms.
- Other tech companies like Nvidia and Microsoft increased pay by at least 12%.
- Intel plans to cut $10 billion in expenses and expand chip factories with new CHIPS Act funding.
Intel's median employee pay has only increased by 4% over the past five years, an analysis of annual proxy statements filed with the SEC showed.
In comparison, other chipmakers and Big Tech companies like Nvidia, AMD, Qualcomm, and Microsoft have boosted their average pay by at least 12%. The reports do not break down pay by gender.
In 2019, Intel's average employee pay was $96,300. It increased to $104,400 in 2021 before dropping to $96,400 the next year. In 2023, Intel CEO Pat Gelsinger and higher-level staff took pay cuts while also instituting "thank you" bonuses in the form of one-time restricted-stock-unit grants for employees.
Besides stagnating pay, Intel employees have seen other setbacks. Executives at the American chipmaker have said it would cut $10 billion in expenses by restructuring its staff and foundry businesses. This fall, Intel cut about 15% of its employees through voluntary buyouts and layoffs and slashed staff perks, as Business Insider reported.
After a year of increased lobbying, Intel was awarded $7.9 billion in grant funding through the Department of Commerce's CHIPS and Science Act on Tuesday, with $1 billion expected to be given by the end of the year. The funding amount is $600 million less than previously anticipated.
Intel plans to expand its chip factories in Ohio and Phoenix with new funding and has already invested billions of its own money for construction. Industry analysts said that Intel's future financial success will depend on its ability to execute on time for its customers.
Qualcomm had reportedly expressed an interest in buying Intel, although the merger would face many operational and regulatory hurdles. Buyout interest has cooled down, Bloomberg reported.
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