EU and US could reach trade deal this weekend - Reuters
Investing.com -- Intel (NASDAQ:INTC) stock fell 4% while Taiwan Semiconductor Manufacturing (NYSE:TSM) shares rose 4% following reports that Intel’s new CEO is considering a significant change to the company’s contract manufacturing strategy.
According to Reuters, CEO Lip-Bu Tan is exploring shifting focus away from the company’s 18A manufacturing process to concentrate more resources on the next-generation 14A technology. This potential pivot aims to make Intel more competitive against Taiwan Semiconductor Manufacturing Co in attracting major customers like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).
Abandoning external sales of 18A and its variant 18A-P could require Intel to take a significant write-off, potentially amounting to hundreds of millions or even billions of dollars, according to industry analysts cited by Reuters.
Intel declined to comment on what it called "hypothetical scenarios or market speculation," noting that Intel itself has always been the lead customer for 18A. The company plans to begin production of its "Panther Lake" laptop chips using this technology later in 2025.
The reported strategy shift comes as Intel faces delays with its 18A fabrication process while rival TSMC’s comparable N2 technology remains on schedule for production, putting additional pressure on Intel’s foundry ambitions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.