This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Even as its earnings guidance failed to meet analyst estimates, Intel's latest earnings call provided upgrades about its ongoing expansion towards a contract manufacturing foundry model. Ahead of yesterday's release, the chip giant announced that it had entered into a partnership with Taiwan's United Microelectronics Corporation (UMC) to develop a new process node that will manufacture chips in the U.S. This will be part of Intel's Intel Foundry Services (IFS) business division, i.e., the firm's contract manufacturing business which aims to compete with the world's largest contract chip manufacturer, the Taiwan Semiconductor Manufacturing Company (TSMC).
Intel Touts Key Contract Foundry Wins In 2023 As Shares Tumble Following Guidance Miss
Intel's manufacturing woes that have led to its infamous product delays are well known in the chip industry, and another implication of the slowdown has been the growth in chips shipped by Taiwan's TSMC. TSMC makes the latest processors for Intel's smaller rival AMD, Apple, NVIDIA, Qualcomm and other players, allowing it to command a sizable chunk of the global semiconductor market.
Related Story Intel Panther Lake CPUs To Double The AI Performance Over Lunar Lake, Clearwater Already In Fabs
Intel's response to this is the IFS division, through which the firm will use its manufacturing technologies for customer orders. Its partnership with UMC is a part of IFS, and at its latest earnings call, Intel's chief executive officer Patrick Gelsinger shared more details about customer interest in IFS products as well as the rationale behind teaming up with Taiwan's biggest contract chip manufacturer after TSMC.
Customer interest in upcoming chip technologies is a keenly watched indicator when analyzing chip firms. It enables analysts to see whether the costs that a firm will book to develop new manufacturing technologies will be recovered by potential orders. A key feature of all TSMC analyst calls is management opinion about customer interest in upcoming technologies, and this was also the case during Intel's earnings call for the fourth quarter of 2023.
According to Gelsinger, Intel is valuing IFS at $10 billion as of 2023 end, which is significantly higher than the previous estimate of $4 billion.
According to Gelsinger, the deal with UMC will expand Intel's portfolios and allow it to leverage Taiwan's well developed semiconductor industry and ecosystem. Crucially, he added that Intel is seeing strong customer interest in IFS, particularly for leading edge chip manufacturing technologies.
The website gametalkz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Recent rumors swirling around about Fortnite's Festival mode are suggesting that February 22 is a date that fans of the rhythm mode should be looking forward to. After Fortnite introduced Fortnite Festival back in December, some fans of the mode have been wondering when the next update will be, and players may be getting an answer sooner than expected.
Hearthstone just revealed some amazing plans for the Year of the Pegasus, including a refresh to the Core set and the Whizbang’s Workshop expansion. Though the first card set of this Hearthstone year releases on March 19, players can log in now and experience a part of the whimsy right away.
Gigabyte is making an important fix to the design of its GeForce RTX 4080 and 4090 series GPUs after various reports of cracked PCBs were spread online. PC gamers wanting to buy a high-end Gigabyte GeForce RTX GPU should be on the lookout for a new label on the packaging to ensure the GPU features an updated PCB design.
We were fortunate enough to receive remasters of a trio of classic LucasArts point-and-click adventures on PS4, and it's now looking like they're being ported to PS5 too. Grim Fandango, Full Throttle, and Day of the Tentacle are all playable on Sony's previous console (and technically PS5 as well), but it seems the current-gen system will soon have native versions of its own.
Taipei’s blue-hued Bannan Line is always packed to bursting, as it’s the approximately 26-kilometre MRT line which ferries passengers to key city destinations like Ximen and Taipei Main Station, but it was abuzz with added enthusiasm late last month, as enthused gamers rode the train all the way through to its destination station for the Taipei Game Show.
In spite of long-running rumors, Doctor Who showrunner Russel T. Davies states that there is no upcoming collaboration between Fortnite and the popular British television series. Former leaks of Doctor Who joining Fortnite had fans of both franchises excited, but this recent comment from the show's lead has put those rumors on ice.
Nvidia Corp. Chief Executive Officer Jensen Huang anticipates advances in computing over the next few years will keep the cost of developing artificial intelligence well below the $7 trillion that Sam Altman is said to be fundraising.
The Snapdragon 8 Gen 4 will exclusively be mass produced on TSMC’s second-generation 3nm process, but its successor, the Snapdragon 8 Gen 5, might switch to a dual-foundry approach as Qualcomm reportedly looks to secure orders from both Samsung and its Taiwanese semiconductor rival. The San Diego chipset maker has apparently requested both companies to provide 2nm samples, which can be evaluated further.
In 2023, TSMC only had one 3nm customer, which was Apple, but as it takes on more clients this year, it needs to address its production capabilities to cater to additional orders. According to one report, the Taiwanese giant intends to increase production to 100,000 monthly wafers in 2024 while also focusing on increasing yields by 3nm.
TSMC's 2nm process has attracted significant client interest, with the likes of Apple and Intel lining up to secure the initial production batch amid huge demand.
According to a Wall Street Journal report, US President Joe Biden will soon announce subsidies top semiconductor companies like Samsung, Intel, TSMC (Taiwan Semiconductor Manufacturing Co) and others to make advanced chips in the US. The strategy is to keep the US and its allies as ahead of fierce rivals like China as is possible.