$Intel(INTC)$ The split is the only way forward. Intel is losing market share on all fronts using chips made internally. It is starting to use $Taiwan Semiconductor Manufacturing(TSM)$ for its flagship designs and the early looks are encouraging.
Hence, the sooner Intel ditches the fabs the better. The costs of building & sustaining investments in Fabs are astronomic and only pure play foundries like TSMC can afford them or a behemoth like $Samsung Electronics Co., Ltd.(SSNLF)$ .
Intel is neither and is in much worse situation than both. It has the worst cost structure and worst competitive position between all leading edge foundries and all leading edge fabless companies. So something has to give.
Being 2nd tier in design and 2nd tier in fabs doesn’t equal to advantage, it’s actually worse as it creates a 3rd tier company which is where Intel finds itself at the moment.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments