Intel Falls, AMD Soars on News of 7nm Chip Tech Delay
by Neal Freyman
Three nanometers. A distance so small you can barely fathom it, but one that may determine the future of the chip industry.
Yesterday, Intel’s stock slid more than 16% after it said it would delay the rollout of its 7-nanometer chip technology by a year. Intel is moving forward with its 10-nanometer process…but in this highly competitive industry, tens of billions in market value go to those who can make the next generation of smaller and more efficient transistors.
That’s where AMD comes in. Shares of the Intel rival gained nearly 15% yesterday, pushed along by Intel’s sour announcement. It’s already making 7nm chips for laptops, and eclipsed more than 17% market share in personal computer CPUs in Q1, per Mercury Research.
- We haven’t even mentioned Taiwan Semiconductor Manufacturing Co. (TSMC), the grandaddy of semiconductors. It’s the No. 1 contract manufacturer of chips globally and will benefit from any Intel stumble.
Zoom out: At its developer conference last month, Apple said it would be ditching Intel to make its own chips for the Mac. Wise move?
source : Morning Brew