A former government at Taiwan Semiconductor Manufacturing Firm TSM mentioned Intel Company INTC is simply too far behind to catch up—and may concentrate on mature course of chips as an alternative of attempting to rival the world’s prime chip foundry.
What Occurred: At a e book launch occasion in Taiwan earlier this week, Chiang Shang-Yi, TSMC’s former co-chief working officer, delivered a blunt evaluation of Intel’s present place within the chip business, reported China’s United Day by day Information.
Chiang, who performed a vital position in constructing TSMC into a worldwide semiconductor powerhouse, mentioned Intel was as soon as the “king” of the business—however is now a “no one.”
He warned that Intel’s efforts to compete with TSMC in superior chip manufacturing, such because the 2-nanometer node, are futile, and urged the corporate to contemplate buying or merging with firms specializing in mature manufacturing processes.
See Additionally: Tesla And Different US Robotics Giants Demand Federal Technique To Compete With China’s $138 Billion Push — Warn America Will Lose The Race With out It
“Intel ought to merge with a mature course of chipmaker,” he mentioned, with out naming particular targets.
Nonetheless, he alluded to 2 potential candidates that business watchers consider may very well be Taiwan’s United Microelectronics Company UMC or U.S.-based GlobalFoundries Inc. GFS, each of which produce chips utilizing older, extra secure applied sciences at scale.
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Why It is Essential: Chiang’s feedback come as Intel undergoes a significant turnaround underneath new CEO Lip-Bu Tan, with a concentrate on attaining manufacturing parity with TSMC and constructing out its foundry enterprise.
The corporate is racing to commercialize its 18A course of know-how and safe contracts from main purchasers like Nvidia Company NVDA and Broadcom Inc. AVGO.
Earlier, it was reported that Intel’s SuperFluid cooling know-how is gaining consideration for its potential utility in Nvidia’s AI servers.
Value Motion: Intel’s shares closed at $22.71 on Friday, reflecting a 3.85% decline. In after-hours buying and selling, the inventory dipped an extra 0.44%. 12 months up to now, Intel has risen 12.31%, in line with Benzinga Professional knowledge.
Benzinga’s Edge Rankings give Intel (INTC) a 3.11% progress ranking. Need to see the way it compares to TSMC and different firms? Click on right here for the complete breakdown.
Take a look at extra of Benzinga’s Shopper Tech protection by following this hyperlink.
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.
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