Business & Investment

Intel has highlighted the potential for licensing, but are TSMC and Samsung interested?Reuters

© Reuters.File Photo: Intel CEO Visits Arizona Factory on Manufacturing Day

Stephen Nellis

(Reuters)- Intel Corp (NASDAQ :) Executives have raised the possibility of licensing chip manufacturing technology from an outside company. It may exchange manufacturing secrets with rival Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) or Samsung Electronics (OTC :) Co Ltd.

Intel is one of the few semiconductor companies that designs and manufactures its own chips, but its business model has been questioned in recent years as it has lost manufacturing leads to Taiwanese and South Korean companies.

One option encouraged by some investors is to outsource manufacturing. However, the company said Thursday that it plans to increase the use of external factories, but that most of its 2023 products will be manufactured internally.

However, licensing technology can help Intel avoid large investments in rival factories that may be associated with outsourcing transactions.

“Roughly speaking, that may mean sharing the technology we can use, or leveraging technology developed by others so we can use it,” said CEO. Bob Swan said in a statement.

That said, the cost of licensing and whether rival companies are interested remains a question.

Intel didn’t appoint a potential licensee, but TSMC and Samsung (KS :) are the only competitors for high-end chips.

“Unless TSMC pays a lot of money, it seems a bit strange to hand over the Kind rubber key,” Bernstein analyst Stacy Lasgon said.

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Intel has highlighted the potential for licensing, but are TSMC and Samsung interested?Reuters

https://www.investing.com/news/stock-market-news/intel-floats-possibility-of-licensing-deals-but-would-tsmc-and-samsung-be-interested-2395822 Intel has highlighted the potential for licensing, but are TSMC and Samsung interested?Reuters

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