Intel is battling a growing consensus that production delays have left the 52-year-old chipmaker lagging behind rivals such as Advanced Micro Devices.,,
For nearly three hours, Intel engineers (ticker: INTC) from several divisions of the company talked in depth about several rows of semiconductors in the works, discussed their upcoming computer and graphics processor units, and revealed details about next month’s release of a laptop. Tiger Lake processors. He also discussed a new chip on the server.
Markets have largely shaken off the news. The stock fell 0.4% to $ 48.99 near noon on Thursday. The PHLX Semiconductor index fell 0.4%.
Intel’s inventories have been strained since at least 2019 as the company struggles to produce enough chips and hits its own targets for smaller transistor sizes – critical to increasing the performance of its microprocessors. Last year, Intel said it would develop production capacity for seven nanometer chips by 2021, but revealed in July that its next-generation production process would not be ready until at least 2022.
Shares of Intel fell 19% after the news in July, as investors rearranged their views on the semiconductor market, losing some faith in the competitive advantage that Intel gained from both the design and manufacture of its chips.
Given its problems with the production of seven nanometers, the company resorted to other methods to increase the performance of its microprocessors. Intel said Thursday it has developed a new method of creating transistors called SuperFin.
Intel chief architect Raja Koduri said in a blog post Thursday that improvements in transistor technology will provide efficiencies equivalent to switching to a smaller transistor size without actually switching. Earlier, Intel said it could achieve transistor density with its 10-nanometer process, which is roughly what its competitors have achieved with seven-nanometer manufacturing techniques. During its presentation on Thursday, Intel said that SuperFin’s productivity gains in the manufacturing process were approximately 15% to 20%.
Intel’s troubles have left a hole for competitors such as AMD (AMD), which does not make its own chips, and Taiwan Semiconductor Manufacturing (TSM), whose customers include AMD and rival graphics chip maker Nvidia (NVDA).
Shares of Intel fell 17% this year, while the S&P 500 index exceeded 5.9%. PHLX gained 20% this year.
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