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Jul 28, 2020
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Intel is looking for “chip foundry” to shake the dominance of the industry may not be guaranteed

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It was reported on July 26 that, as its future CPU will adopt 7-nanometer chip technology, which is about 12 months behind its target, Intel said that the company is considering outsourcing its manufacturing business. Bloomberg commented that this move heralds “the end of an era in which Intel and the United States dominate the world’s semiconductor industry.” The impact of this huge shock far exceeds Silicon Valley.

Intel CEO Bob Swan mentioned in the quarterly earnings report released last Thursday night that the company expects its 7-nanometer chip products to be postponed to the end of 2022 or early 2023. Swan said that the company is considering outsourcing chip production: “As a contingency plan, we will use the productivity of other companies, without having to personally experience all procedures.” The market is generally expected that Intel is likely to outsource this business to the company. TSMC, which produced 5-nanometer-level chips in the four seasons of this year, has long been a foundry for American chip companies.

“This is a major failure on the strategic route, and it is likely to represent the end of Intel’s dominance in the computer industry.” An analyst from US investment agency Raymond James stated in a research report on the 24th that the outsourcing of cutting-edge technology, and most likely to the world’s largest custom chip supplier TSMC, means that Intel has given up for 50 years. The main competitive advantage.

Last Friday, Intel closed down 16%, making it the worst-performing stock in the S&P 500 and Dow Jones Industrials. Intel’s competitor AMD shares soared nearly 17%, and TSMC rose more than 9%.

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