Intel may face troubles in providing foundry services to third party companies

Intel has advanced chip technology, but according to industry representatives cited by the source, it may face difficulties in pursuing its ambition to become a full-fledged contract manufacturer of semiconductor products.

The fact is that Intel is a “newcomer” in this business and is unlikely to be able to compete with such “old-timers” as TSMC, Samsung Electronics, United Microelectronics Corporation (UMC), and GlobalFoundries.

According to observers, customers will not turn to Intel if the prices offered by the company are not much more attractive than those of its competitors.

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However, Intel is still only building its supply chain and ecosystem, so it will be difficult for it to lower prices in the short term. At the same time, Intel’s role as a developer of chips for automotive electronics, supercomputers, and artificial intelligence applications could also conflict with customer interests.

Also, industry sources are skeptical about Intel’s plans to build two new factories. These factories will begin production no earlier than 2024, but by then the current shortage of semiconductor products can be eliminated, so it will be more difficult to load new capacities with orders.

(Via)