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UBS analyst Timothy Arcuri stated, “Intel’s (INTC) new CEO Lip-Bu Tan is likely to refocus on chip design in the short term and seek to attract major customers to strengthen the foundry business.”
He further analyzed, “In the short term, efforts will emphasize Intel’s design and foundry capabilities, including attempts to bring NVIDIA (NVDA) or Broadcom (AVGO) as foundry clients.”
He added, “A core strategy for Intel will be to continue developing the 18A process while actively introducing the lower-power 18AP version to the market, offering customers a more attractive alternative.”
Arcuri explained, “NVIDIA (NVDA) is more likely than Broadcom (AVGO) to become an Intel foundry customer. Jensen Huang could consider adopting Intel’s 18A process for gaming products; however, power consumption remains an unresolved issue.”
Additionally, he noted, “Intel can achieve further success in packaging through EMIB technology, comparable to TSMC’s CoWoS-L platform, potentially enhancing cooperation opportunities with NVIDIA.”
He also mentioned, “Collaboration between Intel and United Microelectronics Corp. (UMC) is progressing smoothly, and production timelines could be accelerated to the second half of 2026. In this scenario, INTC/UMC could emerge as significant secondary suppliers of high-voltage FinFET processes after TSMC, potentially expanding supplies to Apple’s products next year.”
Lastly, Arcuri anticipated, “More detailed updates regarding Intel’s foundry progress will be provided at the Direct Connect event scheduled for April 29.”