By Noel Randewich
(Reuters) – Intel shares
Intel plunged 15% after CEO Bob Swan told investors in a conference call Thursday night that Intel’s new 7-nanometer chip technology was six months behind and Intel could pay other manufacturers to produce its chip designs.
Designing and manufacturing its own personal computer and server chips have given Intel a lead over rivals for decades, and moving away from this model would strengthen little rival Advanced Micro Devices.
“This, our 45th Intel earnings call, was the worst we’ve seen in our career spanning the company,” Bernstein analyst Stacy Rasgon wrote in a customer rating, reducing her Intel rating to “underperforming.” .
Frankly, none of the numbers matter. In fact, investors could have stopped reading the press release after the fourth line of the first page, which indicated that Intel was delaying its trajectory by 7nm with returns. a year behind on internal goals, ”Rasgon wrote.
U.S. stocks of Taiwan Semiconductor Manufacturing Co , the world’s largest contract chip maker, jumped 12%. Intel’s potential surrender in manufacturing means one less competitor for TSMC and one potential new customer.
Manufacturers of semiconductor manufacturing equipment KLA Corp
(Reporting by Noel Randewich; editing by David Gregorio)