- Summary
- Companies
- Intel needs external customers for its 14A manufacturing process
- Analysts doubt government investment will save Intel’s foundry arm
- Intel faces challenges with yield and competition from TSMC and Nvidia
- Government stake raises concerns about governance, analysts say
SAN FRANCISCO, Aug 23 (Reuters) – U.S. President Donald Trump is injecting nearly $9 billion into Intel(INTC.O), opens new tab in exchange for a 9.9% equity stake. But the money – which the struggling chipmaker was slated to receive anyway under a federal funding act – will not be enough for its contract-chipmaking business to flourish, analysts said.
What Intel needs is external customers for its so-called cutting-edge 14A manufacturing process – a tough ask, at least in the short term.
