Intel's fabs present major risk for Qualcomm stock, says Baird

[fansink]

18A yield and backside power problems?


On Monday, Baird maintained its Neutral stance on Intel Corporation (NASDAQ:INTC), with a steady price target of $20.00. The firm highlighted significant risks associated with Intel's fabrication plants (fabs), which are seen as a central uncertainty in the company's turnaround efforts.

The commentary pointed out that Intel's fabs are not well-suited for a potential acquisition by Qualcomm (NASDAQ:QCOM), given the latter's fabless business model.

The analysis underscored the challenges Intel faces, including issues with backside power and 18A yield problems. Additionally, the process of transitioning core production back from TSMC to Intel's own facilities, set to begin later in 2025, was cited as a complicating factor in the company's recovery strategy. These concerns could lead to accelerated employee departures and further complicate Intel's turnaround.

https://in.investing.com/news/company-news/intels-fabs-present-major-risk-for-qualcomm-stock-says-baird-93CH-4438359/

 

[MKWVentures]

I agree with some of the points. The Challenges Intel faces are not just "can Intel do a leading edge technology" .... Intel can

the issues are IMO:
1) Can they be cost effective compared to TSMC. How do they get the scale and efficient processing given where they are starting from.
2) Why do they want to use internal when external is available. What is the financial benefit and competitive advantage. foundries are flexible
3) How can they bring products home? it is only new products? is there an Arrow lake refresh? how do you pay for the transition. what is the financial benefit
4) are fabs and technology the best use of Intels time, money, focus?
5) if the US needs fabs, should there be a separate company or joint venture ("AmFab")
6) The worlds most successful, fastest growing companies are fabless.

Plug the numbers in to a spreadsheet and lets see if we can make sense of this.

 

[Fabian.]

Where did they get the info with backside powering problems from? And since when is 18A yield bad, Intel stated 2 times this or last month that yield is good and on track.

 

[siliconbruh999]

Everyone is after Intel's Fab not a single company outside TSMC can handle those Fabs or Intel with money
What is the point of selling Intel Design to Qualcomm if fabs are to be seperated doens't make sense
The reason they don't wanna squash the rumours is their stock is increasing no sane CEO would say no to increase in stock price

 

[fansink]

Sounds like the vultures are circling Intel's carcass?

On Monday, Rosenblatt Securities addressed circulating rumors about Qualcomm's (NASDAQ:QCOM) potential acquisition of Intel (NASDAQ:INTC), suggesting that the speculation might be overstated. According to the firm, Qualcomm's interest likely centers on specific Intel technologies rather than a complete takeover of the company. The firm also expressed doubts about the deal's approval by government regulators, citing Qualcomm's decision not to switch foundry providers and the lack of a compelling reason to acquire Intel's foundry services.

https://in.investing.com/news/company-news/rosenblatt-dispels-qualcommintel-acquisition-rumors-93CH-4439146

 

[Daniel Nenni]

From LinkedIn:


William LeeWilliam Lee • 2nd • 2ndRoboticist AI, Machine Intelligence enabling New Product Development into Manufacturing & Supply-Chain

Qualcomm Asked Chip Rival Intel if It Would Consider a Sale While Intel has struggled in recent years, other chipmakers are thriving because of a boom in demand.

Very interesting story development - As my Research, Study and Teach on Technology Management Science and Innovation Strategy of Theory as Lenses to Seeing What's Next.

First, it won't happen under Pat Gelsinger as Intel CEO, he would want to see thru this turnaround in completeness. Then, it will depend on whom is keen on this Strategic Alternative within the Intel Board.

Aside from the regulatory and antitrust challenges; what merit can this merger provide, taking cue on the Technology EvolutionNext with Computing Device Market?

Today, I look at the smartphone more than my PC, but I still do work on it. So smartphone is essentially a reading device, the PC with a larger screen and physical keyboard, can help me be more productive at work.

* Question: Can Intel go mobile? Or Qualcomm will start to invade into the PC space?

The answer is already written upon the mirror on the wall, where Microsoft is starting to put the latest Surface Laptop exclusively with Qualcomm chips. Give it a few versions, Qualcomm should run over 90% of applications, when only Intel of the past.

What makes this a tipping point for Qualcomm? Samsung's latest Fold, flexible screen that can double or triple its real-estate. Increasing the convergence of Smartphone and Tablet, not yet PC, but consolidating 2 markets and strengthing the consumer pull away from PC utilitization.

If that's the case, we will still buy Intel-based PC, but because we use Qualcomm-based mobile devices more; PC replacement cycle will inevitably slow and could be much more in the coming years.

Managing this Technology shift, enabled by flexible screen expanding market use, can accelerate and Qualcomm is capitalizing on this.

In the best interest of unlocking shareholders value, Intel Board shall consider this Qualcomm offer, not in hostility, but merger of the best interest for the American Semiconductor National Interest and Global Dominance.

The Digital Economy will well be anchored within Silicon Valley, with San Diego still in California. As a Hewlett-Packard veteran, I see win for Intel and its founded pioneering at Santa Clara.

If so, what the Board gotta tell Pat? Looking back when Robert Noyce innovated multiple devices on a same piece of Silicon Oxide, not just Transistors, adding Resistors and a few others - Created the Integrated Circuit, hence they named themselves Integrated Electronics with short as IntEL.

Therefore, Intel founding was not CPU, it was putting devices on Silicon Oxide for Manufacturing and supply as Chips. If Pat Gelsinger recognizes this dual co-founders Robert Noyce and Gordon Moore, I am sure they were to approve, going back to roots of IntEL to making the best Integrated Electronics and Circuits.

Finally, as a Singaporean - I approve of Qualcomm + Intel for the best of the Americans.

 

[Paul2]

People replace their laptops due to tear and wear for most of the time now, not spec upgrade. That means every 2-4 years, which will still be good money. 2020 was a very good year for laptops, because major brands put forward non-boring models, and it ended the long Sky Lake stagnation, which was kept afloat by Intel with minor updates for almost 6 years.

Interesting design, battery life, and good screen are pretty much the only things non-tech people care about these days.

 

[siliconbruh999]

People replace their laptops due to tear and wear for most of the time now, not spec upgrade. That means every 2-4 years, which will still be good money. 2020 was a very good year for laptops, because major brands put forward non-boring models, and it ended the long Sky Lake stagnation, which was kept afloat by Intel with minor updates for almost 6 years.

Interesting design, battery life, and good screen are pretty much the only things non-tech people care about these days.

This also the app compatibility and software support for OEMs something Qualcomm lacks in severity and will take years and Intel has to stagnante again for anyone to throw them off