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Luke Kawa

Intel dives on report of potential manufacturing strategy shift that could cost billions

Intel is getting slammed today as investors react to a report from Reuters suggesting new CEO Lip-Bu Tan is mulling a substantial shift to its manufacturing business in a bid to compete with the likes of TSMC.

This would involve stepping away from external sales of chips using one manufacturing process in favor of another. Industry analysts cited by Reuters suggested it would result in a substantial write-off in the “hundreds of millions, if not billions, of dollars.”

Tan’s track record in turning around the financial performance of Cadence Design Systems, which helps chipmakers make chips, caused Wall Street to cheer his arrival at Intel.

It seems as though this potential tactic to bolster the beleaguered chipmaker is not being received as warmly, to put it mildly.

This would involve stepping away from external sales of chips using one manufacturing process in favor of another. Industry analysts cited by Reuters suggested it would result in a substantial write-off in the “hundreds of millions, if not billions, of dollars.”

Tan’s track record in turning around the financial performance of Cadence Design Systems, which helps chipmakers make chips, caused Wall Street to cheer his arrival at Intel.

It seems as though this potential tactic to bolster the beleaguered chipmaker is not being received as warmly, to put it mildly.

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