Intel Corp (NASDAQ:INTC) executives have raised the possibility of licensing chipmaking technology from outside firms, a move that could see it exchanging manufacturing secrets with rival Taiwan Semiconductor Manufacturing Co Ltd (TSMC) or Samsung Electronics (OTC:SSNLF) Co Ltd.
Intel is one of the few remaining semiconductor firms that both designs and manufactures its own chips, but the business model has come into question in recent years as the company lost its manufacturing lead to the Taiwanese and Korean companies.
One option urged by some investors would be to outsource manufacturing. The company said, however, on Thursday that while it plans to increase its use of outside factories, the majority of its 2023 products would be made internally.
But licensing technology could help Intel avoid major investments in rivals’ factories that outsourcing deals would likely entail.
“Broadly speaking, that may mean sharing technologies that we have that they could use or leveraging technologies that others have developed that we can use as well,” outgoing Chief Executive Bob Swan told an earnings call.
On technical fronts Intel Corp (NASDAQ:INTC) RSI stood at 78.75 and currently stock is trading above all Moving Average. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : Intel Corp (NASDAQ:INTC) – BUY: 62.33, TARGET: 63.19, STOP LOSS : 61.91