Intel’s pain, TSMC’s gain?
During its second quarter earnings call, Intel said it faces delays on the manufacture of the chips, citing an issue in the manufacturing process. Intel plunged as much as 16% when the stock opened for trading Friday.
Intel has traditionally built its chips in-house, but CEO Bob Swan hinted in the earnings call that that could soon change.
“To the extent that we need to use somebody else’s process technology and we call those contingency plans, we will be prepared to do that….That gives us much more optionality and flexibility. So in the event there is a process slip, we can try something rather than make it all ourselves,” Swan told analysts during the earnings call.
While TSMC wasn’t named, many analysts on Wall Street see TSMC as a likely candidate due to its status as a foundry. The company makes chips designed by other technology firms. Apple is among TSMC’s current clients.
While Intel traded around flat in early Monday action, TSMC was up around 10%, with the chipmaker adding around $33 billion in market value.
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