Intel invested $ 20 billion in building mobile chip factories, threatening both TSMC and Samsung

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2021-03-24 14:00:38

According to a Bloomberg report, Intel’s new CEO, Pat Gelsinger, has launched a plan to bring the US chip maker into direct competition with TSMC and Samsung. Intel will initially spend $ 20 billion on two new factories in Arizona to start making mobile chips for other companies.

Immediately after Intel announced this plan, TSMC’s share price fell 3.9%, while Samsung’s share price also fell 1.3%.

Bloomberg Intelligence analyst Charles Shum said that even with its ambitious plans, Intel would hardly become an immediate threat to TSMC. TSMC’s biggest customers, Apple, AMD, and Qualcomm, are all competitors to Intel, so it is difficult for these companies to leave TSMC and switch to their own competitors.

But Intel’s new plan comes at a critical time, when the global shortage of processors is worsening and demand for chips is at an all-time high. The addition of Intel foundries will also help open up new directions in supplying chips for every technology device, from gaming machines to cars.

Right now, Intel is at a major crossroads. The world’s largest computer chip maker is facing increasing competition from AMD and Apple’s new line of M1 chips. Meanwhile, semiconductor manufacturers like TSMC are increasingly far behind in technology and engineering. New generations of Intel chips are often late.

But now, Intel has seen a big change in leadership. And the new plan announced today represents major transformations in the future.

Reference: bloomberg

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