Intel's foundry business poised for growth with 18A process technology under Trump administration
From Nasdaq: 2024-12-16 23:45:52
Intel (NASDAQ:INTC) stock has declined by over 55% this year to trade at $21 per share. The foundry business reported a $7 billion loss on $18.9 billion revenue. However, a turnaround is expected with the new 18A process technology. Intel could benefit from regulatory support under the Trump administration.
Intel has made significant progress with chips using the 18A process, powering on and booting operating systems. External customers are expected to tape out designs in 2025. Big contracts have been secured, including with the U.S. Department of Defense, Amazon, and Microsoft for custom chips.
Intel’s foundry division could benefit from a potential increase in regulatory support under the Trump administration. Stronger domestic production emphasis could lead to more business for Intel. The company’s domestic manufacturing footprint could help secure U.S. technological independence and lead to more government contracts.
Intel’s fab capacity and new process nodes could help secure domestic semiconductor supply chains. This could be crucial for companies like Nvidia, which rely heavily on foreign production. Intel’s U.S.-based manufacturing could mitigate geopolitical risks associated with foreign production.
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Read more at Nasdaq: Trump, 18A Make Intel’s Foundry More Valuable Than Ever