Intel s foundry ambitions could be slowed by lack of deal targets Reuters 18 hrs ago By Stephen Nellis © Reuters/Steve Marcus FILE PHOTO: FILE PHOTO: An Intel Tiger Lake chip is displayed at an Intel news conference during the 2020 CES in Las Vegas
By Stephen Nellis
(Reuters) - For Intel Corp Chief Executive Pat Gelsinger, an obvious strategy in his high-stakes bid to make the company a player in producing chips for others would be a transformational acquisition, analysts say.
But there is just one problem - a dearth of acquisition targets for Intel to buy.
The conundrum came into focus last week when the Wall Street Journal reported that Intel was considering a purchase of chipmaker GlobalFoundries for $30 billion. Intel reports earnings Thursday, and despite a booming PC market, analysts expect a 9.8% drop in sales to $17.8 billion as Intel loses share to rivals like Advanced Micro Devices Inc.
Intel s foundry ambitions could be slowed by lack of deal targets
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Intel s foundry ambitions could be slowed by lack of deal targets
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“Legacy” and “mature” are the words usually thrown at the semiconductors Tom Caulfield produces at factories in Singapore, the US and Germany. He doesn’t like that.
Instead, the chief executive officer of GlobalFoundries wants people to refer to his chips as “feature-rich,” a term he feels better describes their wide array of uses. His point is valid. While larger rivals Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp. battle it out to make ever-more advanced chips, the world is suffering most from a lack of capacity in the very products that GlobalFoundries offers.
“The industry has painted itself into a corner by focusing on single-digit nanometer,” Caulfield said in an online press conference, referring to the current obsession with smaller, more advanced manufacturing geometries. “Today we have cars sitting in a parking lot missing chips made on 45 or 65 nanometer.”