Did Broadcom Just Deal a Blow to Intel's Fledgling Foundry Services Business?
Intel (NASDAQ: INTC) and its CEO Pat Gelsinger have made it clear that the Foundry Services (IFS) business -- where it manufactures chips on a contract basis for other semiconductor designers -- is key to its future. The former king of the chip industry has touted picking up manufacturing contracts worth billions of dollars in future revenue and is in active discussion with seven of the 10 largest "fabless" (no manufacturing division) chip designers.
One of those top chip giants is Broadcom (NASDAQ: AVGO). However, during Broadcom's last earnings call, its CEO Hock Tan made some disappointing remarks for Intel investors hanging their hopes on IFS. Was Intel dealt a blow?
Broadcom, as well as many other top fabless chip designers like Nvidia, Advanced Micro Devices, and Apple's in-house silicon team, make use of contract chip manufacturing. Far and away, the top dog in advanced chipmaking is Taiwan Semiconductor Manufacturing (NYSE: TSM), more commonly known as TSMC. In fact, some 90% of all the most advanced chips produced in the world come from TSMC.
Source Fool.com
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