Comment by rkagerer
9 days ago
Could you elaborate why this is good for Intel?
I understand it brings a short term injection of expertise and capital, but it looks to me like they can't operate their own fabs and a chunk of their manufacturing facilities have just been gobbled up by their competitor.
Intel has several issues but the biggest, IMHO, is that they are trying to reestablish their FAB (chipmaking) business.
TMSC owns the FAB market and even Intel has them make their best chips because they aren’t currently competitive.
Each new FAB costs $15-$20 billion so Intel has some large expenses and they are hemorrhaging money. Many don’t like the uncertainty because Intel might not succeed.
My personal view is that the stock has been beaten down a lot and I’m optimistic they will succeed. They have a new CEO with a lot of industry knowledge.
https://newsroom.intel.com/corporate/intel-appoints-lip-bu-t...
Of course I could be completely wrong and Intel will be broken apart and sold for scraps in a few years. I believe at this price, I’ll still make money in the worst case scenario