Intel's $13.4B Gamble: Can It Steal Nvidia and Broadcom From TSMC--Or Is This Another Pipe Dream?
Intel is testing its last shot at redemption. Nvidia and Broadcom are interested—yet will they actually commit? Intel (NASDAQ:INTC) is making waves after reports surfaced that Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) are running tests on its 18A manufacturing process. If these tests turn into actual contracts, it would be a massive win for Intel's struggling foundry business.
- The stakes have never been higher for Intel's foundry business, which has hemorrhaged $13.4 billion in losses over the past year; if Nvidia and Broadcom commit to using its 18A process, it could be the turning point this company needs.
- But with smaller chipmakers still grappling with intellectual property issues before they can even start production on the new technology, Intel will need more than just interest from these two giants to prove that its gamble is worth taking.