Intel is positioning itself as the only serious alternative to TSMC in the chipmaking industry, according to a recent Wall Street analyst report. As the tech world eagerly awaits the company’s next-generation 18A process, industry insiders are growing increasingly bullish on Intel’s potential to lead in advanced packaging.
Despite Intel’s turbulent past and ongoing challenges, Gus Richard of Northland Securities believes that Intel’s efforts are showing promising results, and he has reiterated an ‘Outperform’ rating with a price target of $28 for the stock.
Richard’s confidence stems from Intel’s progress in its next-gen manufacturing process, which is finally approaching commercial viability. Intel’s 18A process, poised to power upcoming products like Panther Lake CPUs and Clearwater Forest Xeon servers, is set to offer significant improvements. This new process is expected to deliver 30% better density scaling, a 25% increase in frequency at the same power level, and 36% lower power consumption at the same frequency. Intel’s advanced packaging capabilities also make it a strong contender alongside TSMC in the race for leading-edge semiconductor technologies.
Intel’s expansion efforts, including the development of its Fab 52 and Fab 62 facilities in Chandler, Arizona, indicate the company’s commitment to growing its chip production capabilities. The company is also eyeing a potential transition to System-in-Package (SiP) technologies, which could further enhance its position in the semiconductor market. SiP allows the integration of multiple components into a single package, providing an edge in producing smaller, more powerful chips.
Meanwhile, Richard speculates that the geopolitical tensions in the Middle East could affect the global semiconductor industry, potentially strengthening Intel’s position as a key player in the market. The ongoing instability between Israel and Iran may open the door for China to assert its control over Taiwan, which would make Intel’s chipmaking capacity even more valuable.
With TSMC and Intel both making significant strides in chip fabrication, the competition between the two companies is heating up. But Intel’s 18A process, combined with its strategic initiatives, could give the company a distinct advantage in the coming years.