Intel's Foundry Business Shows Significant Turnaround
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 40 minutes ago
0mins
Should l Buy TSM?
Source: Newsfilter
- Foundry Progress: Intel CEO Lip-Bu Tan stated that the company's foundry business is gaining traction, with improving manufacturing yields attracting interest from external customers, and commitments from multiple clients are expected in the second half of the year, marking a significant revival in the semiconductor market.
- Yield Improvement: Tan noted that Intel's 18A manufacturing process was underperforming when he took over, but now the monthly yield improvements have exceeded 7% to 8%, which not only enhances profitability but also boosts customer confidence in the foundry business.
- Increased Customer Interest: As manufacturing performance improves, more prospective customers are approaching Intel, particularly following a preliminary agreement with Apple, with expectations of additional clients collaborating with Intel in the second half of the year, further driving market share growth.
- Strategic Importance: Tan emphasized the strategic significance of the foundry business for the U.S. semiconductor supply chain, with Intel's new plant in Arizona utilizing the 18A process, and the upcoming 14A process poised to compete with TSMC, showcasing the company's ambitions in the global semiconductor market.
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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: 404.350
Low
63.24
Averages
313.46
High
390.00
Current: 404.350
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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- Yield Improvement: Tan noted that Intel's 18A manufacturing process was underperforming when he took over, but now the monthly yield improvements have exceeded 7% to 8%, which not only enhances profitability but also boosts customer confidence in the foundry business.
- Increased Customer Interest: As manufacturing performance improves, more prospective customers are approaching Intel, particularly following a preliminary agreement with Apple, with expectations of additional clients collaborating with Intel in the second half of the year, further driving market share growth.
- Strategic Importance: Tan emphasized the strategic significance of the foundry business for the U.S. semiconductor supply chain, with Intel's new plant in Arizona utilizing the 18A process, and the upcoming 14A process poised to compete with TSMC, showcasing the company's ambitions in the global semiconductor market.
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- USA Compression Partners Performance: After reaching a 52-week high, analysts believe that USA Compression Partners' strong yield will help maintain its stock price stability, even as market fluctuations may impact other stocks.
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- Yield Improvement: Tan noted that Intel's 18A manufacturing process was underperforming when he took over, but now the monthly yield improvements have exceeded 7% to 8%, which not only enhances profitability but also boosts customer confidence in the foundry business.
- Increased Customer Interest: As manufacturing performance improves, more prospective customers are approaching Intel, particularly following a preliminary agreement with Apple, with expectations of additional clients collaborating with Intel in the second half of the year, further driving market share growth.
- Strategic Importance: Tan emphasized the strategic significance of the foundry business for the U.S. semiconductor supply chain, with Intel's new plant in Arizona utilizing the 18A process, and the upcoming 14A process poised to compete with TSMC, showcasing the company's ambitions in the global semiconductor market.
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- 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.
See More
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- Position Expansion: Coatue Management increased its stake in Taiwan Semiconductor Manufacturing Company (TSM) from approximately 7.96 million shares to over 9.28 million shares by Q1 2026, reflecting strong confidence in the semiconductor sector and potentially enhancing returns in its tech investments.
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- Trimmed Holdings: Coatue reduced its stake in PayPal (PYPL) by 76% to 1.24 million shares, reflecting a cautious stance on the payments industry, while also cutting back on investments in Amazon (AMZN) and Nvidia (NVDA), indicating a reassessment of these companies' market performance.
See More
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- Chip Sales Uncertainty: Although Trump stated that the H200 chip was not discussed with China, the U.S. government has approved several Chinese firms to purchase the model, indicating a complex demand landscape.
- Tariff Discussion Likelihood: There is a 57% chance that Nvidia will address tariffs during its earnings call, which could significantly influence its sales strategy in the Chinese market moving forward.
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