KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Intel's contract manufacturing business has encountered a setback after testing with chipmaker Broadcom did not meet expectations, according to three sources familiar with the situation. The tests involved processing silicon wafers using Intel's latest 18A manufacturing technology. After receiving the wafers back from Intel, Broadcom concluded that the process is not yet viable for high-volume production, potentially impacting Intel's efforts to establish itself as a major player in the semiconductor manufacturing industry.
Key Points:
Challenges with Intel’s 18A Manufacturing Process: Broadcom tested Intel's advanced 18A manufacturing process, which is crucial for the production of next-generation chips. The tests indicated that the process might not be ready for high-volume production due to concerns about the number of defects or the quality of the chips produced on each wafer.
Uncertainty Over Future Collaboration: The current relationship between Broadcom and Intel remains unclear, and it's unknown if Broadcom will proceed with a manufacturing deal. While Intel insists its 18A process is progressing well and is on track to begin high-volume manufacturing next year, Broadcom is still evaluating Intel's offerings and has not made a final decision.
Impact on Intel's Turnaround Strategy: The contract manufacturing business, launched in 2021, is a critical part of CEO Pat Gelsinger's turnaround strategy for Intel, which has committed around $100 billion to expand and build new factories in the U.S. Attracting major clients like Nvidia or Apple is vital to filling the capacity of these new sites. However, the disappointing Broadcom tests, coupled with Intel's recent $7 billion operating loss in its foundry business, present significant challenges to these efforts.
Industry Dynamics and Competitive Pressures: The competition with established players like Taiwan Semiconductor Manufacturing Co. (TSMC) is fierce. TSMC charges approximately $23,000 per wafer for advanced chip manufacturing at high volumes, and moving production to another vendor like Intel requires considerable time and resources. Intel's goal is to be "manufacturing-ready" for its own chips by the end of this year and to begin high-volume production for external customers by 2025.
Intel's recent setback with Broadcom highlights the challenges it faces in its quest to become a leading contract chip manufacturer, as it competes against well-established players and navigates the complexities of advanced semiconductor production.
Comments
Post a Comment