Latest news with #Lip-BuTan
Time of India
2 hours ago
- Business
- Time of India
Intel CEO Lip Bu Tan may be planning this 'big change' in company's chip manufacturing business
Intel CEO Lip-Bu Tan is reportedly planning a 'big change' to the company's chip manufacturing business to attract major customers. This potential shift deviates from his predecessor's plans and could involve substantial investment. According to a report by the news agency Reuters, two sources familiar with the matter revealed that this new strategy for Intel's foundry business would involve offering outside customers a newer generation of technology. Analysts also reportedly believe that this next-generation chipmaking process would position Intel more competitively against Taiwan Semiconductor Manufacturing Co (TSMC) in securing large clients like Apple or Nvidia. Why Intel's new CEO may not be 'happy' with chipmaking process promoted by ex-chief After taking over as the company's new CEO in March, Tan has been reassessing the company's investment in its 18A chip manufacturing process, which was promoted by former CEO Pat Gelsinger . The Reuters report cited sources to claim that Tan has expressed concerns that 18A is not attracting enough external clients and may result in a major financial write-off if Intel stops marketing it to new customers. Intel has already spent billions on developing 18A and its variant, 18A-P. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo While Intel continues using 18A for in-house chips and select commitments to companies like Amazon and Microsoft , Tan may be shifting focus to the 14A process, the Reuters report claims. Intel believes 14A could offer a stronger competitive position against Taiwan-based rival TSMC, whose N2 and N3 technologies are already in production or close to it, the report adds. As per the Reuters report, Tan is expected to present strategic options to Intel's board, potentially by this month. However, a final decision may not come until later in the year due to the high stakes involved. Meanwhile, Intel continues restructuring under Tan's leadership, with steps including new engineering hires and streamlined management. Last year, Intel posted a net loss of $18.8 billion, which was its first unprofitable year since 1986, as it works to regain ground lost in past tech transitions. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
7 hours ago
- Business
- Yahoo
Robinhood hits $100, Intel turnaround, Centene pulls outlook
Yahoo Finance anchor Josh Lipton takes a closer look at some of the trading day's top stories on Yahoo Finance's Market Minute. Robinhood (HOOD) shares hit $100 for the first time. The trading platform stock has more than doubled year to date. Intel (INTC) CEO Lip-Bu Tan is reportedly considering scrapping the American chipmaker's efforts for the 18A manufacturing process, a staple of his predecessor Pat Gelsinger's tenure, according to reporting from Reuters. Centene (CNC) stock plunges after the company withdrew its 2025 outlook. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo Finance's market minute. Shares of Robinhood rising in today's trade touching a record high of $100 for the first time ever. The move higher comes amid momentum around the trading platform's continued expansion, that stock extending a monster year to date rally of more than 160%. Intel under pressure as the chipmaker's new CEO reportedly considered scrapping the company's long awaited 18A technology for external customers. That's according to Reuters. That technology involves a chip manufacturing process that analysts have said is Intel's greatest hope for succeeding in a turnaround. And lastly, Centene shares struggling as the company withdraws 2025 guidance. Healthcare enterprise noting that preliminary data for 22 of its 29 marketplace states showed lower than expected market growth. And that's your Yahoo Finance market minute. For more on what's trending on Yahoo Finance, scan the QR code below to track the best and worst performing stocks of the session. Sign in to access your portfolio
Yahoo
7 hours ago
- Business
- Yahoo
Intel's turnaround efforts are coming too 'late in the game'
Intel (INTC) could be eyeing major changes as CEO Lip-Bu Tan reportedly considers pulling back on the company's 18A chip manufacturing and shifting focus to future tech, according to Reuters. Argent Capital Management portfolio manager Jed Ellerbroek joins Opening Bid to explain why the stock's value isn't compelling enough to overshadow fierce competition and the difficult turnaround ahead. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. Intel off this Reuters report that uh, new CEO Lipu Tan may pull back on 18A manufacturing, may lean into new technology that may not be around until uh, 2028. You know, our source tells me to expect big changes at Intel. Uh, I do expect those big changes to happen in Intel because the company cannot continue to lose large sums of money like it has been from its foundry business or that business that makes chips and competes with Taiwan Semi. But you mentioned valuations here, Jed. Um, does anything about what Intel's doing interest you? This is a stock now trading almost in line with book value. I mean, we learned from Benjamin Graham. I mean, once these stocks trade at book value or below book value could represent an opportunity, but Intel's been really been struggling here. Yeah, Intel's a perennial underperformer. We wouldn't, we wouldn't, you know, invest in that stock today. Um, most, most turnarounds do not succeed. Um, I think Intel has a pretty, pretty tough future ahead of it and they have extremely strong competition. You mentioned TSMC, um, really dominant, seemingly building on strength. Intel, you know, pretty late in the game trying to turn around. It Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
9 hours ago
- Business
- Yahoo
Why Did Intel Stock Drop Today?
Reuters reports Intel may cut investments in its 18A semiconductor manufacturing process, in favor of 14A. Such a move could entail billions of dollars in write-offs. Intel is not commenting on the reports. 10 stocks we like better than Intel › Intel (NASDAQ: INTC) stock slid 3.3% through 11:20 a.m. ET Wednesday after Reuters reported a shift in the company's foundry business plan. Intel may be preparing to cease marketing its "18A" chipmaking process (which is to say, making 1.8-nanometer semiconductor chips) to outside customers, and write off its investment in that process. Instead, Intel would focus on more advanced 14A process (1.4 nm) for its foundry customers, while continuing to develop 1.8-nm chips in-house. New CEO Lip-Bu Tan has commented that customers seem less than enthusiastic over Intel's 18A chips -- which is kind of a disappointment after Intel invested "billions of dollars" in the process. Industry experts are predicting the change in focus will cost Intel "hundreds of millions, if not billions, of dollars" in write-offs. However, if Intel can keep making 1.8-nm chips on its own, the write-downs may be less fierce. Intel may not have yet made a final decision to change tack, reserving that for a board meeting later this month. In the meantime, Intel is declining to comment on "hypothetical scenarios or market speculation." Intel reported its first generally accepted accounting principles (GAAP) net loss in nearly 40 years last year. Analysts forecast the company will lose money (but less money) this year, and next year as well, before returning to profitability. The company is betting big on 18A and 14A to catch up to rival chipmakers such as Taiwan Semiconductor, but as today's news shows, it's not an easy task. Valued at more than $100 billion, carrying more than $50 billion in debt, and with $21 billion in cash, Intel's still a giant company. But until it's proven it can be a giant, profitable company again, I can't recommend buying the stock. Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Why Did Intel Stock Drop Today? was originally published by The Motley Fool Sign in to access your portfolio
Economic Times
12 hours ago
- Business
- Economic Times
Intel's new CEO explores big shift in chip manufacturing business
Reuters Intel's new chief executive is exploring a big change to its contract manufacturing business to win major customers, two people familiar with the matter told Reuters, in a potentially expensive shift from his predecessor's plans. If implemented, the new strategy for what Intel calls its "foundry" business would entail no longer marketing certain chipmaking technology, which the company had long developed, to external customers, the people said. Since taking the company's helm in March, CEO Lip-Bu Tan has moved fast to cut costs and find a new path to revive the ailing U.S. chipmaker. By June, he started voicing that a manufacturing process that prior CEO Pat Gelsinger bet heavily on, known as 18A, was losing its appeal to new customers, said the sources, who spoke on condition of anonymity. To put aside external sales of 18A and its variant 18A-P, manufacturing processes that have cost Intel billions of dollars to develop, the company would have to take a write-off, one of the people familiar with the matter said. Industry analysts contacted by Reuters said such a charge could amount to a loss of hundreds of millions, if not billions, of dollars. Intel declined to comment on such "hypothetical scenarios or market speculation." It said the lead customer for 18A has long been Intel itself, and it aims to ramp production of its "Panther Lake" laptop chips later in 2025, which it called the most advanced processors ever designed and manufactured in the United States. Persuading outside clients to use Intel's factories remains key to its future. As its 18A fabrication process faced delays, rival TSMC's N2 technology has been on track for production. Tan's preliminary answer to this challenge: focus more resources on 14A, a next-generation chipmaking process where Intel expects to have advantages over Taiwan's TSMC, the two sources said. The move is part of a play for big customers like Apple and Nvidia, which currently pay TSMC to manufacture their chips. Tan has tasked the company with teeing up options for discussion with Intel's board when it meets as early as this month, including whether to stop marketing 18A to new clients, one of the two sources said. The board might not reach a decision on 18A until a subsequent autumn meeting in light of the matter's complexity and the enormous money at stake, the person said. Intel declined to comment on what it called rumor. In a statement, it said: "Lip-Bu and the executive team are committed to strengthening our roadmap, building trust with our customers, and improving our financial position for the future. We have identified clear areas of focus and will take actions needed to turn the business around." Last year was Intel's first unprofitable year since 1986. It posted a net loss attributable to the company of $18.8 billion for 2024. The Intel chief executive's deliberations show the enormous risks - and costs - under consideration to move the storied U.S. chipmaker back onto solid footing. Like Gelsinger, Tan inherited a company that had lost its manufacturing edge and fell behind on crucial technology waves of the past two decades: mobile computing and artificial intelligence. The company is targeting high-volume production later this year for 18A with its internal chips, which are widely expected to arrive ahead of external customer orders. Meanwhile, delivering 14A in time to win major contracts is by no means certain, and Intel could choose to stick with its existing plans for 18A, one of the sources said. Intel is tailoring 14A to key clients' needs to make it successful, the company said. AMAZON AND MICROSOFT ON 18A Tan's review of whether to focus clients on 14A involves the contract chipmaking portion of Intel, or foundry, which makes chips for external customers. Regardless of a board decision, Intel will make chips via 18A in cases where its plans are already in motion, the people familiar with the matter said. This includes using 18A for Intel's in-house chips that it already designed for that manufacturing process, the people said. Intel also will produce a relatively small volume of chips that it has guaranteed for and Microsoft via 18A, with deadlines that make it unrealistic to wait for the development of 14A. Amazon and Microsoft did not immediately comment on the matter. Intel said it will deliver on its customer commitments. Tan's overall strategy for Intel remains nascent. So far, he has updated his leadership team, bringing in new engineering talent, and he has worked to shrink what he considered bloated and slow-moving middle management. Shifting away from selling 18A to foundry customers would represent one of his biggest moves yet. The 18A manufacturing process includes a novel method of delivering energy to chips and a new type of transistor. Together, these enhancements were meant to let Intel match or exceed TSMC's capabilities, Intel executives have previously said. However, according to some industry analysts, the 18A process is roughly equivalent to TSMC's so-called N3 manufacturing technology, which went into high-volume production in late 2022. If Intel follows Tan's lead, the company would focus its foundry employees, design partners and new customers on 14A, where it hopes for a better chance to compete against TSMC. Tan has drawn on extensive contacts and customer relationships built over decades in the chip industry to arrive at his view on 18A, the two sources said. (Reporting by Jeffrey Dastin, Max A. Cherney and Stephen Nellis in San Francisco; Editing by Kenneth Li and Matthew Lewis) Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Delhivery survived the Meesho curveball. Can it keep on delivering profits? 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