Intel Expects to Overtake TSMC in Advanced Chip Manufacturing

What You Need To Know

Intel Corp (NASDAQ: INTC) revealed at its technology conference in San Jose that it expects to beat rival Taiwan Semiconductor Manufacturing Co (TSMC) in advanced chip manufacturing before its internal deadline of 2025. The company plans to maintain its lead over TSMC through 2026 and beyond.

Intel announced that Microsoft will use its services to manufacture a custom computing chip using its 18A technology, and said it expects $15bn of foundry orders. The firm has four "large" customers signed up for its 18A manufacturing technology.

Intel also disclosed its next-generation Intel14A process node, set to arrive in 2026. The company's contract chip manufacturing business, Intel Foundry, also aims to become the industry's most sustainable foundry.

Why This Is Important for Retail Investors

1. Potential Investment Opportunity: The success of Intel in overtaking TSMC in advanced chip manufacturing could indicate a positive growth trajectory for the company. Retail investors may view this as an opportunity to invest in INTC stock as a company that has a competitive advantage in the industry.

2. Increased Revenue Potential: The partnership with Microsoft (MSFT) and the expectation of $15 billion in foundry orders demonstrate Intel's potential to generate significant revenue. This could positively impact the company's financial performance and potentially lead to increased shareholder value.

3. Technology Advancements: Intel's focus on developing advanced chip manufacturing technologies, such as the Intel 18A and Intel14A process nodes, indicates its commitment to staying at the forefront of innovation. This could attract retail investors who are interested in investing in companies that are driving technological advancements.

4. Geographic Diversity: Intel's geographic diversity, with cutting-edge factories located on multiple continents, could be appealing to retail investors. It offers a level of stability and resilience to the supply chain compared to TSMC's concentration of factories in Taiwan.

5. Sustainability Initiatives: Intel's (INTC stock) aspiration to become the industry's most sustainable foundry aligns with growing investor interest in environmental, social, and governance (ESG) factors. Retail investors who prioritize sustainability may find Intel's commitment appealing and may be more inclined to invest in the company.

How Can You Use This Information?

Here are some of the investing ideas that can be explored using this information:

Growth Investing

Growth investing focuses on stocks of companies expected to grow at an above-average rate compared to other stocks in the market; learn more in our article titled 'What is Growth Investing?'.

Intel's potential to overtake TSMC and its focus on advanced chip manufacturing technologies highlight growth prospects for INTC stock, making it worth exploring for growth-oriented investors.

Defensive investing

Defensive Investing focuses on securing a portfolio by choosing companies that are less sensitive to economic downturns.

Intel's partnership with Microsoft (MSFT) and diverse geographic presence indicate stability and resilience in the face of market fluctuations. This could be of interest to defensive investors seeking more stable investment options.

Thematic Investing

Thematic Investing selects assets based on projected trends or themes believed to offer growth opportunities.

Intel's commitment to sustainability and its aspiration to become the most sustainable foundry align with the growing theme of ESG investing. Investors interested in supporting environmentally conscious companies may find Intel appealing.

Diversification

Diversification spreads investments across various assets to reduce risk and volatility in a portfolio.

Including INTC stock in an investment portfolio can help diversify exposure to the tech sector and reduce concentrated risk. Investing in a mix of sectors, including technology, can lead to a more balanced and diversified portfolio.

Innovation-Focused Investing

Innovation-focused investing seeks out companies that are leaders in technological advancement, offering potential for significant growth as they develop new products and services.

Intel's focus on advancing chip manufacturing technologies and a recent partnership announcement with Arm Holdings showcase its innovation-driven approach. Investors seeking exposure to companies at the forefront of technological advancements may find Intel attractive.

Read What Others Are Saying

Reuters: Intel signs Microsoft as foundry customer, says on track to overtake TSMC

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