Intel's External Manufacturing Business Gains Traction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: CNBC
- Importance of Manufacturing: CEO Lip-Bu Tan stated that Intel's external manufacturing business is becoming a key part of the company's revitalization strategy, aimed at rebuilding advanced chip production capacity in the U.S. and reducing reliance on overseas manufacturing.
- Significant Yield Improvement: Tan noted that Intel's 18A manufacturing process was underperforming when he took over, but now shows monthly yield improvements exceeding 7% to 8%, which not only exceeds expectations but also boosts customer confidence.
- Increased Customer Interest: As manufacturing performance improves, more prospective customers are approaching Intel, with expectations of multiple commitments in the second half of the year, further driving the growth of the external manufacturing business.
- Strategic Implications: Tan emphasized the critical role of the external manufacturing business in the U.S. semiconductor supply chain, with Intel's new Arizona plant utilizing the 18A process, while the upcoming 14A process is expected to compete with TSMC, marking a significant breakthrough.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 404.520
Low
63.24
Averages
313.46
High
390.00
Current: 404.520
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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