Chipmaker Intel (Intel) quasi-CEO Pat Gelsinger announced plans to produce most of its own chips by 2023, dragging down the shares of some Asian semiconductor suppliers.
TSMC (2330), which supplies Intel and other chipmakers, was the first to bear the brunt, falling 3.57% to NT$649 in the 22nd session, the biggest drop since August 20 last year, before closing at NT$651 with a 3.27% decline.
Other related suppliers were also hit by the news, with Japan’s Deans Semiconductor (Screen) trading in Tokyo plunging nearly 3.8% during the session, the deepest drop since December 10 last year, while Tokyo Wiley Techtron was down 1.4% at one point. However, there are some Japanese suppliers benefit, such as camera maker Nikon (Nikon) and the new photoelectric gas industry shares are up.
Singapore consultancy Asymmetric market strategist Anwar Sad said: “TSMC’s share price flameout, mainly because Intel said the future will produce most of its own chips, although Intel currently outsourcing the production of advanced technology chips such as graphics processors (GPU) to TSMC, but will try to produce these chips at some stage itself. So it’s TSMC’s suppliers that are performing weakly, not Intel’s suppliers.
Anwar Sad also sees the fall in the share prices of these suppliers as a great Time to buy, because Intel has not yet started outsourcing operations, while the capacity utilization of foundries has reached its limit. Asymmetric is bullish on Deans’ after-market performance, Anwar Sad said.
The new CEO has not yet assumed office has made Intel morale boost
Intel’s new chief executive officer, Jensinger, will take office on February 15.
Intel’s new chief executive officer, Jensinger (Pat Gelsinger) will not take office until next month on the 15th, but his confident speech has already boosted the morale of the semiconductor company.
Gelsinger 21 and the outgoing incumbent CEO Shi Wang (Bob Swan) jointly attended an online law conference to talk about his strategy for revitalizing Intel’s chip manufacturing business.
Financial website MarketWatch columnist Poletti (Therese Poletti) described Jensinger’s speech can be condensed into a battle cry to motivate all employees: we will fight to the end with the Intel way!
The most important statement of the meeting was to clarify Intel’s manufacturing plans. As expected, Jessinger said that Intel will maintain most of its own chip production, and continue to hand over some products to TSMC and other companies OEM. As for the outsourcing ratio how much, which products outsourced production, is still a mystery.
Jessinger said that last week has personally reviewed a thorough analysis of Intel’s 7-nanometer process node data, the past six months the situation has improved, apparently a boost of confidence. In response to analysts’ questions about what makes investors believe that the 7nm process is really on track now, Messinger said, “I’ve looked at that data and come to the same conclusion.
Compared to Swann, who was promoted from treasurer to CEO, Jensinger has served Intel for 30 years in a variety of positions, including Intel’s first chief technology officer, and his decision to retain his own chip business from an engineer’s background is not surprising, and his speech was particularly convincing to employees and investors. Confidence in Jaysingh’s technical expertise will help attract former star engineers to return to Intel’s service.
Jensinger said he is working to attract first-class engineers back to Intel, such as the “father of IntelCorei7” Glenn Hinton promised to end his retirement and rejoin Intel.
Jensinger said: “will continue to announce the return of other heavyweight leaders, please wait and see.
Jensinger said that returning to Intel as a helmsman is his “dream position,” even though Intel is in a sort of “nightmare situation” at the moment — with competitors like AMD and Nvidia making strides while Intel is stumbling and being hit by delays in process upgrades.
Evercore ISI analyst C.J. Muse pointed out in a research report, Jensinger to reverse Intel’s disadvantage is not easy, but the new CEO can bring two exciting forces: internal refocus on engineering, from the outside to recruit talented people.
Jensinger also said with personal experience to encourage employees that Intel has also survived the difficulties, will be more courageous. I personally was part of the downturn, from 2005 to 2009, when we lost our market position and our multi-core (processors) lagged behind, but we turned the company around and established an unquestionable leadership position through a period when people were questioning whether the company could succeed,” he said.
Great companies always come back stronger than ever, stronger, better and more capable than ever. …… I’m convinced that this company’s brightest days are ahead of it, and I can’t wait to have this opportunity to be a part of them.
It’s been a long uphill road to get Intel to climb the existing pothole and leap up, but it looks like Jessinger is ready to lead the company up to the challenge.
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