The company reported also full-year revenue of $53.3 billion, operating income of $14.6 billion, net income of $11.0 billion and EPS of $2.13. The company generated approximately $18.9 billion in cash from operations, paid dividends of $4.4 billion, and used $4.8 billion to repurchase 191 million shares of stock.
"The fourth quarter played out largely as expected as we continued to execute through a challenging environment," said Paul Otellini, Intel president and CEO. "We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data center. As we enter 2013, our strong product pipeline has us well positioned to bring a new wave of Intel innovations across the spectrum of computing."
During the full 2012, Intel's PC Client Group had revenue of $34.3 billion, down 3 percent from 2011. However, the company's Data Center Group had revenue of $10.7 billion, up 6 percent from 2011. Other Intel architecture group had revenue of $4.4 billion, down 13 percent from 2011.
Intel said $2 billion of its increased expenditures would go toward expanding a facility for researching future manufacturing technology. Intel is expanding its research fab in Hillsboro, Oregon, to develop technology for manufacturing chips on 450 mm silicon wafers.
Intel has also agreed to manufacture custom chips on behalf of Cisco, Bloomberg reported on Thursday, although Intel did not provide any comment.
"We are very interested in being a selected foundry manufacturer for certain customers. We don't see ourselves as a general-purpose foundry or competing with general-purpose foundries. We would not take business that enables a competitor. We have a crawl-walk-run strategy. We're still in the crawl stage," Otrellini said.
Intel puts its hopes that its 2013 chips for laptops, tablets, and smartphones, Otellini said. Intel plans to launch its Haswell chip in the first half, a new laptop processor that will deliver "the largest generation-to-generation battery life improvement in Intel's history," said Otellini. The executive said the new chip should help its PC partners produce thinner and lighter computers with longer battery life.
"We've looked at the [new] A15 [ARM chip]. We know our own silicon in terms of Bay Trail and Clover Trail+ and we're very comfortable we can maintain a performance lead here," Otellini said.
Clover Trail+ is Intel's upgrade of the Clover Trail Atom chip used in currently shipping tablets. That comes later in the first half. Bay Trail is a complete redesign of the Atom processor, slated for late this year.
Intel also expects to see more Intel-based tablets shipping beyond the 10 that are already available. And the number of smartphones based on Intel chips will expand beyond the seven devices currently available, said Otellini.
Intel also plans to launch its first Xeon and Atom chips produced on its leading-edge 22-nanometer manufacturing process targeted at the data center market.